The data foundation for real-time liquidity management

Every bank has an abundance of liquidity data:

• Treasury systems
• Payment platforms
• Collateral applications
• Market infrastructure
• Finance systems

All of these systems generate monumental amounts of information every single day. And yet many financial institutions still struggle to build a timely, reliable view of their liquidity position.

Obviously, the problem isn’t a lack of data. It’s that critical information sits across multiple systems, functions and reporting structures. For treasury teams, bringing it all together isn’t always straightforward. They need to collect, validate and reconcile information before they can use it with confidence.

That takes time. And when conditions are moving quickly, time matters.

Treasury teams are also being asked to do more than monitor and report on this data. They’re needing to anticipate developments, support business decisions and respond quickly when market conditions, payment activity or funding needs change.

To do that, they need information that is connected, consistent and available in real time.

A strong data foundation makes this possible.

The fragmentation challenge

Having all the data in the world doesn’t necessarily give treasury teams a clear picture. They may well have the information available that’s needed to make decisions, but it’s often spread across systems, functions and processes that don’t naturally work together.

Treasury teams manage cash positions, funding activity and liquidity buffers, while payment systems process transactions throughout the day. Collateral platforms track available and encumbered assets and finance, risk and operations teams hold further information that can influence liquidity decisions.

Each system has their own important role, but they weren’t always designed to work together.

Different update cycles, data models, workflows and reporting structures can make information difficult to reconcile. This means teams are often spending valuable time collecting and validating data before they’re able to analyze it.

That becomes particularly important when conditions change quickly. Payment volumes can fluctuate, markets can shift and funding requirements can change during the day. In these moments, fragmented information can make it harder for treasury teams to build a clear picture and respond effectively.

The challenge isn’t lack of information here. It’s getting that information aligned and ready to use when it matters.

A connected data foundation gives teams a common view across systems, processes and functions, helping stakeholders make faster and more confident decisions.

Why treasury needs a trusted view

A clear liquidity position isn’t much use if teams don’t have confidence in the numbers behind it. And when different parts of the organization are working from different figures or definitions, reaching the right decision becomes harder.

Treasury leaders make decisions that affect funding, collateral, liquidity buffers, regulatory obligations and wider business operations. They need a view of current conditions and likely developments that they can rely on.

That means having complete trust in the underlying data – knowing that information is accurate, consistent, complete and timely.

It also means using shared definitions so the same information is understood in the same way across the entire organization. This is particularly important because the liquidity data rarely supports just one activity. The same information can be used for:

• Treasury operations
• Risk management
• Regulatory reporting
• Funding decisions
• Executive governance

When these groups work from different figures, discussions become difficult and decisions take longer.

To be clear, a trusted data foundation doesn’t remove the complexity of liquidity management. But it does help teams manage that complexity more effectively. Instead of questioning the underlying numbers, stakeholders can focus on the implications, the available options and the right response.

Visibility matters. Being able to have complete confidence in that visibility matters even more.

Connecting existing environments

Financial institutions have invested in treasury, payments, finance and collateral technology over many years. These systems support critical operations and contain significant business value so the goal is not replacement, but connecting them more effectively on a real time basis.

It’s imperative for liquidity information to move smoothly across systems and business functions. So when data gets trapped in siloed applications, it limits visibility and responsiveness, even if each application performs its own role well.

The joint SAP Fioneer and EY whitepaper describes the value of a dedicated infrastructure layer that brings together liquidity information when existing environments can’t provide the required update frequency.

This can give organizations a more connected view of:

• Cash balances
• Funding sources
• Payment activity
• Collateral positions
• Liquidity exposures

Bringing this information together can improve consistency without unnecessarily disrupting established operating models.

But connectivity isn’t only a technical issue. It’s an operational one too.

Organizations need to consider how information moves between teams, how it’s governed and how insights are shared. Technology can improve visibility, but the operating model determines how effectively teams can turn that visibility into decisions.

When systems and processes work together, information becomes easier to access, understand and use. Treasury teams can spend less time on manual work and more time interpreting changing liquidity conditions.

For many institutions, the journey toward real-time liquidity management doesn’t start with replacing technology. It starts with making better use of the systems and information already in place.

Building a foundation for better decisions

Advanced liquidity capabilities depend on reliable information. Organizations are exploring forecasting, scenario analysis, alerts and predictive insights to strengthen liquidity management. But these capabilities depend on data that’s accurate, complete and current.

Even advanced models will struggle with fragmented or outdated inputs. A connected data foundation creates better conditions for analysis. Teams can access information faster, produce more consistent reports and spend less time collecting and reconciling data. That gives treasury professionals more time to focus on interpretation and action.

The benefits go beyond efficiency. Trusted information supports clearer accountability and better conversations across the organization. It helps stakeholders understand what’s happening, why it matters and what action may be needed.

Over time, this changes the role of liquidity data. Instead of using it mainly for reporting, organizations can use it to guide decisions, support planning and strengthen resilience.

That’s the value of a trusted data foundation: helping institutions move from collecting information to using it.

The path forward

Expectations for liquidity management continue to constantly evolve. Regulators, executives and market participants expect institutions to understand their liquidity position and respond effectively when conditions change.

Visibility alone isn’t enough. Teams need information they can act on.

A trusted, connected and timely data foundation is more than a technology initiative. It helps strengthen the operational capabilities needed for effective liquidity management.

With the right foundation, organizations can improve forecasting and decision-making, strengthen governance and build greater resilience. Treasury teams can spend less time searching for information and more time using it.

Progress doesn’t depend on having the most data. It depends on turning available information into meaningful insight and informed action.

The journey from visibility to action starts with a trusted data foundation.

Explore the operating model described in the joint SAP Fioneer and EY white paper to see how a connected liquidity information foundation can support more effective management decisions.