“One of the top G-SIB’s North America treasury operations”

Complex treasury transformation in North America made easy

In its fourth year, the IDC FinTech Rankings Real Results recognizes IT providers that have enabled a genuine, measurable, and future-enabling change at a client financial institution (bank, capital markets firm, or insurer) in the worldwide financial services industry. Submissions had been evaluated by a panel including IDC Financial Insights analysts and individuals holding senior positions at prominent financial institutions from across the globe.

Intellect OneTreasury implementation won the award for achieving the following:

  • Innovation
  • Response to Market Need
  • Effectiveness of Implementation
  • User benefits
  • Business Advantage
  • Impact on Key Performance Indicators

The Solution

It was a Treasury transformation initiative at one of the top G-SIBs (Global Systematically Important Banks), bringing together the funding activity across 13 legal entities in North America. It entailed replacing the existing legacy platforms using a single real-time instance of Intellect OneTREASURY for Fixed Income and Money market. It’s a very large transformation involving the migration of a trillion dollar balance sheet with nearly 250 billion dollars worth of daily flows across 10 currencies. This transformation was based on connecting the four levers of Risk, Liquidity, Trading and Client Servicing, that the treasurer depends on to grow and manage their business. This was done by creation of a “Bank Chain” entity covering the 13 legal entities in scope to integrate cash flows. It also meant global co-ordination of the funding and risk management process.

The Key Business Objectives

The key objectives set by the business were:
1. To have an integrated view of the bank chain activity that could reduce overall funding costs
2. Automation of inter-entity funding using predefined business rules
3. To get Real-time updates of all flows to enable better funding decisions lower funding costs
4. Improving operational efficiency and throughput
5. To reduce the overall transaction operational cost, thereby improving the desk net P&L
6. Reducing Trader and Operations touch on trades

Value Delivered

Increased

  • Trader Productivity
  • Margin Improvements (better insights, faster updates)
  • Accuracy of funding decisions
  • Risk management
  • Simplified technical architecture
  • Straight through processing rates

Decreased

  • Deal booking time
  • Capital requirement due to overall reduced risk
  • Operational Costs (less systems, IT environment, ops resources, exceptions)
  • Operational risks
  • Operational complexity (less systems, environments)
  • Bespoke customised solution
  • Number of systems to maintain

With the implementation of Intellect OneTREASURY, the bank now has a very efficient platform for straight through processing of trades while providing a global consolidated view for effective management of market and credit risk.