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Global Liquidity Management

 Home / Products / Transaction Banking / FinnAxia Cash and Liquidity Management / Global Liquidity Management
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FinnAxia Global Liquidity Management

Product Module Overview

FinnAxia Global Liquidity Management helps banks enable complete visibility into cash positions for their corporate customers. This results in better utilization of available funds and reduced interest costs through short-term bank borrowings. Liquidity Management helps the bank setup and manage complex cash concentration and pooling structures for automated fund transfer and consolidation within the group.

This software automates all transactions, interest & tax calculations and manages a registry of intercompany lending/borrowing history and limits for the corporate.

Business Benefits

  • Reduced Operating Costs and enhanced operational efficiency .
  • Maximized interest income though automatic funds transfer services with sweep rule engine.
  • Reduced business risk by working capital optimization for the corporate
  • Enhanced efficiency by consolidation of multiple decentralized processes
  • Unlock trapped cash and reduce interest costs
  • Reduced dependency on local credit facilities

Features

  • Flexible and parameterized solution for tailor-made offerings
  • Real time liquidity views & EOD cash pool positions
  • Structure Simulation for predictive analysis
  • Rule Based Sweep Reversal Process
  • Configurable rule setup for charging corporate
  • Multiple time zone handling; cross/multiple currencies; multilingual & multi browser support
  • Web-enabled (J2EE), ability to interact with multiple channels
  • Seamless Integration with downstream systems
  • Central information management for visibility, analytics and performance metrics
    • Hybrid Structures comprising of Notional Pool and Sweep Structures

FinnAxia offers solutions around four pillars of Liquidity Management:


Sweeps works by making transfers between parent and child accounts to aggregate balances physically. These transfers can be subject to various criteria specified by the client, which can include a number of options:


  • The balance to be left on the child account (e.g. zero or pegged/target account balancing).
  • Whether fund flows are Uni Directional or bi-directional (i.e. whether flows are topping or funding or Sweeps)
  • The frequency and timing of sweeps (e.g. intra-day and/or end-of-day; single or multiple events at predetermined times).
  • The layering and sequencing of the sweep activity, i.e. single or multiple levels sweeps.
  • Bilateral and multilateral intercompany relationships
  • Limits control and tracking at bilateral and multilateral relationships
  • Interest calculation, accrual and posting of lending or borrowing Loan
  • Individual interest rate setup for lending and borrowing
  • Tax calculation, accrual and posting based on parameterized setups

Read More..

  • FinnAxia Notional Pooling module supports various models for Interest optimizations such as
    • Pool Interest
    • Pool Advantage
    • Interest Optimization
    • Interest Enhancement
  • Parameterized Interest calculation, Distribution and Reallocation options to maximize interest for corporate.
  • Notional Pool Interest supported by three distribution model
    • Central Model
    • Central with Distribution
    • Direct with Distribution
  • Notional Pool Interest supported by various reallocation models
    • Equitative
    • Absolute Pro Rata
    • Fair Share + Pro Rata
    • Fair Share + Equitative
    • Percentage

FinnAxia Liquidity Management supports setting up and execution of Hybrid Structures. In Hybrid Pooling – both notional pooling and sweeps can be used together to maintain credit and debit positions of various accounts in the book of the bank.


The funds consolidation happens in respective header account of the participating subsidiaries of corporate through sweeps; (Parent- Child relationship along with rules). The header accounts in each country then participate in the notional pool structure as a participant. Account balances get notionally pooled and interest calculated is reallocated as per the model selected.


  • FinnAxia Liquidity Management comes with the following features:
    • Setting up a Multi-bank, multi-entity, multi-country, multi-currency and multi time zone hybrid structure
    • Setting up of multi hierarchy structure comprising of sweeps and notional pool structure
    • Defining the structure with fields on customer, customer group, intra-bank, inter-bank, inter/intra corporate
    • Provision of adding existing sweep structures or notional pool structures to the hybrid structure