Intellect Launches Capital Cube, a Treasury and Asset Liability Management solution, for regulatory compliance and business growth
Treasury has a critical role to play in shaping bank’s strategy as the challenge of managing balance sheet, maximizing capital efficiency and improving associated risk-returns are demanding and here to stay. While the treasurer has to monitor the liquidity exposures, manage balance sheet volatility, maintain the capital buffers and comply to a slew of regulatory requirements, contributing as a strategic partner to the business is critical.
An ecosystem of disparate solutions hampers the treasurer’s goal of contributing significantly to the growth of the business. The need of the hour is an intelligence driven integrated real-time system aiding rapid decision making with compliance to evolving regulations.
‘Capital Cube’ from Intellect, an integrated treasury & ALM solution, that aids the treasurer to strategically manage the balance sheet, adapt to regulatory regimes, optimize liquidity and leverage risk to maximize profits for the bank. Capital Cube enables greater strategic planning and execution by bringing together the six key business levers for today’s treasurers which are as follows:
- Treasury – Integrated Front, Mid and Back office with comprehensive asset coverage to mitigate operational, financial and settlement risks and increase operational efficiency.
- ALM – Identifying potential liquidity gaps early and optimally managing assets and liabilities with corresponding NII (Net Interest Income) and NIM (Net Interest Margin) analysis. Funds Transfer Pricing helps to allocate the margins to products and business segments.
- Capital Adequacy – Maintaining capital as per regulatory requirements ensuring optimum buffer for efficient utilization of funds. Helps track and maintain LCR and NSFR at optimal levels by ensuring proper balance of short and long term funding sources.
- Risk Management – Real time capabilities to identify and monitor, liquidity and market risk through industry standards and metrics.
- Corporate Business Exchange for FX– Increasing customer engagement index by enabling the bank’s clients to hedge positions for better risk-return outcomes to fuel business growth.
- Analytics – 21 key decision support analytics in the areas of pre-deal, sensitivity, risk, balance sheet, P& L etc. providing real-time business insights and highlighting areas requiring management involvement.
The solution addresses the strategic and risk management requirements of a bank’s treasury across the front, mid and back office, aiding the treasurer to safeguard the bank’s financial assets and effectively manage its liabilities. The solution provides updated information on liquidity, funding and exposures, assuring solvency, protecting margins by accurate view of asset and liability positions, effective hedging, performance attributions and providing greater visibility and control to treasury.
The resultant benefits are as follows:
- What-If’ Analysis & Simulations with real time blotters for position, cash and P&L management lead to informed decision making.
- Automated reporting of Branch positions with online updates to Traders ‘ positions lead to real-time online positions update with online rate resolution.
- Efficient mobilization of funds through borrowing and deposits to support pre and post issuance activities.
- Optimize investments and minimize operational expenses through a single tool leading to effective liquidity and funding management.
- Automates online monitoring of limit breaches and alerts to reduce counterparty credit risks , improve controls resulting in operational cost benefits.
- Efficient framework and real-time capabilities help to identify risk, measure and monitor positions and exposure for optimal leveraging.
- Rich Stress testing capabilities to protect revenue margins by assessing impact of volatility and market changes through Sensitivity analysis.
- Helps identify ideal buy/sell strategies for re-balancing portfolios to achieve better risk-returns.
- Asset Liability management to continually monitor and optimize liquidity and Interest Rate Exposure over future time horizons.
- Leads to 95%+ STP with efficient Back-office processing through flexible workflow management unique.
- Provides self do-able and reliable reporting tools and Intuitive Dashboards designed for Treasurers, Risk Managers and Operations Managers alike with comprehensive coverage of reports including Compliance and Regulatory.