Target Balancing: Automate Liquidity & FX Risk Management for Your Banks Business Clients

“Managing and optimizing liquidity across multiple accounts is a necessity for most businesses. Companies operating internationally face the additional complexity and risks of handling accounts in different currencies. The Target Balancing module is designed to help company clients of banks address these challenges in a robust, easy and automated way.

Once the policy settings are defined, the system schedules automatically run at the specified frequency and time to check the real-time balances of the accounts in scope. The system automatically initiates a transfer or trade and instantly settles the top-up or sweep. Any changes? Users can manage everything themselves, with a full audit trail and reporting functionality.” – Niels van Daatselaar, Co-founder and CEO of TreasurUp

Designed By Treasurers For Treasurers

The Target Balancing module is tailored for finance professionals – like Treasurers, Cash Managers, Controllers, or CFOs – allowing them to set and automatically execute clear policies regarding the liquidity held in multiple accounts. 

These policies can for example address the following questions:

1. What is the desired target balance for each account?
2. Where should any extra funds go?
3. Which accounts (or bank products) should cover any shortfall?
4. What are the limits for each transaction?
5. What is the timing and the frequency for maintaining the balance?

Automatically generate sweep or top-ups to meet the user-defined target balance.

3 Main Versions of Target Balancing:

1) Cross-currency:

Generate sweeps or top ups between different currency accounts via FX trades.

2) Domestic:

Generate sweeps or top ups between accounts of the same currency held at the same bank.

3) Cross-Border:

Generatesweeps or top ups between accounts held at different banks.

6 Ways your bank can benefit from offering Target Balancing:

1. It’s a simple yet powerful tool to help your clients automate a repetitive process. 
2. It generates a recurring stream of business. Set once, benefit continuously.
3. It is a white-label solution. It seamlessly integrates into your bank portal.
4. It caters to many clients, from the lower to upper tier of your company clients’ portfolio.
5. It makes it easy to onboard new clients.
6. It facilitates cross-department integrations: this versatile tool can combine products from FX, cash management, lending, investment, etc.

Cross-Journeys with Other Modules:
1) Cash Visibility

1. Set up target balancing rules directly from the Cash Visibility module.
2. View the cash flows from Target Balancing automatically categorized in Cash Visibility.

2) FX

1. Use spot or swap trades to settle cross-currency Target Balancing scenarios.
2. Set up target balancing rules directly from the FX module.
3. View all the trade details from Target Balancing in the FX trade reports.

Ready to Elevate Your Banking Solutions?

Contact us today to learn how your bank can integrate Target Balancing and to see the module in action.