2 Liquidity Management

This topic describes about the overview of Liquidity Management in Oracle Banking Digital Experience.

Liquidity Management solution provides with an ability to the corporate customers to manage their liquidity by optimizing interest by offsetting account balances, reducing interest costs, maximizing net returns and by providing greater visibility over cash positions. It helps to mobilize and manage funds corrective actions, helps to reduce external borrowing and liquidity risk, manages foreign currency liquidity requirements, and enhances visibility of cash across the group.

As a part of Liquidity Management module of Oracle Banking Digital Experience, following features are available to the corporate customers of the bank.

  • Liquidity Management Overview Dashboard

    The liquidity management dashboard provides an important information to the corporate on digital banking platform. Various widgets are a part of the dashboard which gives the complete information about the corporate position.

    • Position of a corporate by region/geographical location.
    • Position of a corporate by currency.
    • Net corporate position along with assets and liabilities information.
    • Top sweeps in local currency and cross currency.
    • Sweep Monitor.
  • Account Structure Maintenance

    Account structure is an efficient tool to optimize the working capital of the business. The objective of creating an account structure is to bring together the credit and debit balances of different current and savings accounts into one single concentration account of a corporate. This enables the corporate customer to manage daily liquidity in their business in a consolidated fashion to derive maximum benefits at minimal cost.

    Oracle Banking Digital Experience enables the corporate users to maintain account structures by providing sweep or pool instructions.

    As a part of account structure maintenance, Oracle Banking Digital Experience enables the customer to,
    • Build Account Structure
      Application allows the corporate user to build new account structure using digital banking platform. While building a structure, corporate can capture.
      • Structure Type and Details (Sweep, Pool, Hybrid).
      • Account Mapping and specify the hierarchies.
      • Check basic validations.
      • Set up instructions between each account pair.
    • View and Edit Account Structure

      A facility is provided to corporates to search the account structures maintained between the internal and external accounts of their parties. Further, can see and edit the structure details along with the instructions set between an account pair.

    • Pause account structure and Ad hoc Execution

      Corporates can pause the processing of a structure for a specific time period and also can initiate an ad hoc execution of sweeps for specific structure.

  • Log Monitor
    A feature is enabled to the corporate user to select the structure and view the sweep logs of a structure with specific statuses.
    • Executed
    • Pending
    • Exceptions (Failed executions)
  • Liquidity Management using Virtual Accounts
    The Liquidity Management module in Oracle Banking Digital Experience can handle both real accounts as well as Virtual Accounts. Below are the key points:
    • In order to be able to do liquidity management using Virtual Accounts, the bank must also be using the Virtual Accounts module of Oracle Banking Digital Experience along with product processors (Oracle Banking Virtual Accounts Management and Oracle Banking Liquidity Management). Further the product processors must have an integrated setup.
    • The party/customer and user must have the necessary access management rights enabled for Virtual Accounts in liquidity management.
    • Once the Virtual Accounts are visible, rest of the steps in creating liquidity management structure, capturing sweep instructions etc. remain same for both real and Virtual Accounts.
    • The Virtual Account balances visible on the screen are fetched from Oracle Banking Virtual Account Management.
    • Virtual Account should not be part of Charge Account and Central Account drop-down.

This topic contains the following sub-topics: