For a bank’s treasury, there are 3 main industry drivers – regulation and compliance, cost pressure and pace of technology disruption. Banks that can quickly embrace modern technology and use it to reduce operational costs, introduce innovative products and business models, and comply with regulations, will have an advantage over banks that have not embraced such technologies.
Challenges and Opportunity
Legacy versus digital innovation as on-premises legacy technology stacks are slowing down the rapid rollout of new products. AI & ML tools are bringing about disruption in treasury by ushering in digital models.
High, up-front capital investments in infrastructure and hardware are driving the thrust towards being more cost efficient by having a leaner cost base. Rolling out new products or regulatory compliance updates need changes to the existing system which could be a tedious process lengthening the time to market.
Cloudification of treasury will drive digital transformation, reduce cost and accelerate innovation. The key benefits of the cloud would be coreduction, reduced time to market, improved customer experience and agile working processes.
The Intellect Promise
Intellect Capital Cube has the potential to improve both the top line and bottom line through:
Revenue Accelerators – Pre-deal yield simulators and rich portfolio analytics help maximise trading profits. Real-time simulators help improve NII/NIM. Increase in fee-based income through a Corporate FX channel and enhancing margins through branch FX. Efficient intraday liquidity management reduces the liquidity requirement, increasing investment opportunities. Just-in-time funding reduces the funding cost
Optimum Capital Leverage – Alternate Capital Assessment model, Profit Attribution analytics, Reduced Compliance cost, Sensitivity, Stress & Shock tests and improved Tier 1 & CAR help maintain optimal capital and efficient leverage of funds, leading to an increase in profits
Digital Treasury – STP of 95%+ reduces per transaction processing cost. Integrated front to back treasury on a single platform reduces technology cost. Cloud-enabled and multi-database compliance reduces TCO. Standard APIs to market data providers reduce implementation costRequest Demo
Intellect Capital Cube is an integrated cross-asset, high-performance treasury platform that covers the complete trade cycle from trade initiation, capture to settlements, maturity. Capital Cube delivers operational performance via a configurable straight-through-processing (STP) mechanism across front, middle and back offices, which improves the efficiency of trading, operations, and risk management functions by eliminating redundant manual processes and lets the user focus on management of the exceptions within your transaction flow. Capital Cube includes various point solutions including portfolio risk analytics, reconciliation, instrument pricing analytics along with asset liability management. Built on eMACH.ai (event-driven, microservices-based, API-enabled, cloud-native, headless with underlying AI models), Capital Cube enables Banks and financial institutions to pick and choose the relevant microservices that best suit their business needs and growth aspirations.