Fundtech announced the launch of a product Monday that will help banks deal with liquidity issues stemming from regulations including Basel III.
The product, called Liquidity & Risk Management, uses a dashboard that lets banks view intraday liquidity positions in real time, giving them a consolidated view of current liquidity across the enterprise, as well as funds held at other banks. The dashboard also helps banks create forecasts for future liquidity.
"If you are not JPMorgan Chase, at the highest level you will want to know what [your position] is like vis-a-vis JPMorgan and what your exposure is," says Gene Neyer, a senior vice president of global payments for Fundtech.
"For most banks [liquidity management] is more fragmented, and when there is crisis someone is trying to pick up the fragments … with this centralized engine, there is more chance of understanding the risk exposure and how I can move money relative to the exposure," says Joseph Mazzetti, executive vice president of corporate development for Fundtech.
The product uses service oriented architecture to make it easy to integrate, and is an extension of the Fundtech Service Platform. It uses a rules-based design, letting users set parameters, workflow priorities, policies and other preferences, Fundtech said in a press release.
Nearly 60% of banks said liquidity is their top priority, according to a survey Fundtech conducted of its clients. Nearly 60% said both Basel III and the changing regulatory environment will increase the costs and complexity of operations.
Fundtech, of Jersey City, N.J., has over 1000 bank customers, including 30 of the top 50 banks. Fundtech said it is currently implementing the product with one non-U.S. bank.
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