The value of real-time cash-balance reporting is being overlooked by many banks – perhaps due to its regulatory origins, argues a new white paper from Deutsche Bank. Looking back to 2013, when the concept first gained real momentum through the publication of the Basel Committee on Banking Supervision’s BCBS 248-paper, the report notes that the lack of a common regulatory mandate may have put the brakes on full-scale industry adoption, with only a few banks – typically the very largest – bound by regulation under individual mandates.
Advantages of real-time reporting range from the originally stipulated boost to stability in stress scenarios, a clear view over incoming and outgoing flows, giving complete control over intraday cash positions, and the necessary data to build and test strategies for managing and optimising liquidity at all times throughout the day.
In addition to outlining the current benefits of real-time liquidity reporting, the white paper forecasts that the tech revolution now underway will enhance them further through the transformative power of application programming interfaces (APIs), distributed ledger technology (DLT) and artificial intelligence (AI). But investing right away in real-time reporting capabilities will quickly provide real returns, long before migration to ISO 20022 has been completed.