In an exclusive video series with The Banker, Vanessa Manning, Deutsche Bank’s Global Head of Investment & Liquidity, discusses the changing liquidity landscape, and the importance of value-add services to a bank’s holistic cash management offering.
Covering the changing regulatory environment, shifting interest rates and the emerging technologies that spur changes to clearing and settlement architectures, this Masterclass video series offers an expert insight into what banks, and corporates, should be considering when looking to the future of cash management.
In the first video, Editor of The Banker, Brian Caplen, rightly asserts that emerging technology has made corporate clients more demanding. Corporates and institutions anticipate the business benefits of improving technology – such as real-time payments – and are seeking partners who can provide them. For example, Manning highlights how corporates are increasingly moving their high-value payments to SEPA Instant Credit Transfer (SCT Inst), whose efficiency, transparency and ISO XML formatting adds considerable value. The proliferation of value-add services is part of a more competitive banking landscape, facilitated by open-banking initiatives such as PSD2, which are discussed further in the second video.
These open-banking initiatives services should be developed in intensive, ongoing dialogue with clients. For example, in advance of the imminent shift to a 24/7 clearing environment, Deutsche Bank has been working with customers to develop end-to-end processing, engagement and procedures, as well as optimised treasury and architectural technology to take full advantage of this new industry paradigm.
Looking beyond basic treasury
As basic treasury operations stand to reform in light of digitalisation – considered in video three – treasurers will be able to look beyond their typical duties and focus on alternative tactics of capital optimisation. Manning notes that an increasing number of corporates have sought Deutsche Bank’s support in developing, implementing and potentially automating new investment strategies. One particularly popular solution is the development of on-balance-sheet solutions, which reserve a percentage of capital without earmarking them as untouchable. These funds can be invested in line with investment strategies, while also providing a degree of security against market volatility.
As noted in the fourth video, banks should approach their clients’ changing operations with an open, innovative and conscientious mindset, because rethinking investment and liquidity is only the beginning. “It’s about front-to-back redesign”, says Manning, “It’s re-engineering.”
To read the article click here.
To watch the video chapters click below.
Global Head of Investment and Liquidity, Cash Management | Deutsche Bank
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