About the Transformation
The bank created a technology subsidiary at the end of 2020 with the objective of integrating their most innovative payment assets under one roof and establishing a common tech backbone for payments for the bank’s customers and the open market. With this, the bank sought to achieve a global leadership position in payments.
The bank sought a solution that would not only address the complexities that exist in traditional payments system like high cost, lack of transparency, but also enable them to offer services at competitive prices, and more importantly, process transactions in real-time. For this, the bank looked to developing new strategies for its treasury operations, including two foundational elements:
- Driving centralized FX management
- Implementing a centralized liquidity model to facilitate instant transactions without incurring a massive use of liquidity within the bank’s books
Transforming Treasury Operations with Innovative Technology
The bank wanted to bring about a long-term change that would benefit both, the bank and its customers and a fundamental transformation in bank’s own treasury operations was the ideal way to do that. The bank achieved this by partnering with its strategic technology partner Infosys Finacle and leveraging its industry leading Virtual Accounts Management solution. Designed to digitally transform cash management at a global scale, the solution empowered the bank to innovatively streamline and reimagine their treasury operations. This helped with improving customer experience, bank’s liquidity, and mitigating risks, thus helping the bank achieve its aim of becoming the world’s best open financial services platform.
Success Highlights
- The model simplifies operations, reduces IT development and resource usage globally, and provides a firm base for wider product offerings across different geographies
- The banks in the network of this platform will have almost 150 currencies to offer to their customers for international transfers as opposed to 50 currencies before
- User experience through the platform is seamless, providing a real-time visibility of the FX spread to be applied, the commissions, and the amount that will be sent to the beneficiary
- The bank has already seen an improvement of up to 10% in the use of liquidity throughout the network to facilitate payments across different geographies
- International payments between the bank’s entities instantaneously as opposed to 3-5 days earlier
- The integrated platform powered by Finacle has started the creation of an ecosystem that would deliver tailored services on time, leading to greater customer loyalty with every interaction
