Functional Features

Default Payment Instructions

Default Payment Instruction allows maintenance of a matrix that will decide the default payment instruction for an account pair involved in a liquidity structure, based on parameters like DDA/Hosts involved, Entities involved, and the Type of Payment (Internal/Domestic/Cross-Border).

At the time of structure creation, the system will default the payment instruction based on the above maintenance. User can opt to either retain the defaulted payment instruction or change it to a different instruction as needed.

Interest Optimization

Interest Optimization enables the bank to offer preferential rates to participating accounts of a customer based on overall balance thresholds. Bank can now set up currency wise interest rates that the pool of accounts would additionally earn if their balance is beyond the threshold amount. Bank can nominate an account where the additional interest income is credited.

Advices & Monitor related changes

Oracle Banking Liquidity Management application had multiple PDF reports which had data & details for various functionalities. In this release these reports have been rationalized based on the way these reports are meant to be used.
Reports that are typically shared with a customer will continue to be in PDF format and are now called “Advices”. These are:
1. Interest Paid Advice
2. Interest Reallocation Advice
Reports that are typically used by bank users for further analysis/study will now be available as “Monitor” screens where user can inquire details and download the inquiry result in excel format. The changes are as follows:
1. Information available in Sweep Summary Report & Sweep Reject Report are available in Sweep Monitor
2. Details in Interest Accrual Report are available in “Interest Accrual Monitor”
3. Details in Exception Report are available in “Exceptions Monitor”
4. Interface Report details are available in “Interface Monitor”
Following reports will no longer be available
1. Structure Creation Report – Charges
2. Structure Modification Report – Charges
3. Structure Details Report– Charges
4. Structure Contribution Report – Charges
5. stomer Report

Updates to Link Account screen of RTL structure

Users can now see the Account Description in the Link Account screen along with Account Number, Currency and Branch.

Display of Bank Name and IBAN for External accounts

For the External accounts participating in the liquidity management structures, users can now see Bank Name and IBAN also.

Fortnightly Sweeps and Sweep Calendar

User can now maintain two new sweep frequencies (Fortnightly Sweep and Sweep Calendar). These two frequencies provide greater flexibility in managing liquidity when attached to account structures.
In Fortnightly Sweep frequency, the user can choose a day of the week and sweep is triggered on that day every alternate week making it a fortnightly sweep.
In Sweep Calendar, the user can choose any random dates in the future and sweeps will be executed on those dates.

Charges for Liquidity Management

Charges functionality enables bank to maintain, calculate and collect charges to customers for various liquidity management related activities.Below charges are supported for Oracle Banking Liquidity Management:

Table 1-1 List of charges supported

Charges	Description
Onetime Liquidity Management setup charges	These are one-time flat charges configured whenever a customer is on boarded for liquidity management.
Structure Setup Charge	These are flat charges configured per account structure creation. Different charges can be setup based on the type of account structures. The available options are: Sweep Pool Hybrid
Maintenance Charge for Liquidity Management Usage	These are flat periodic charges configured at customer level for liquidity management usage.
Structure Maintenance Charges by Structure	These are flat periodic charges configured for account structure maintenance and are charged by structure. Different charges can be setup based on the type of account structure. The available options are: Sweep Pool Hybrid
Structure Maintenance Charges by Accounts	These are periodic tier or slab based charges configured for account structure maintenance and are charged by number of accounts in a structure. Different charges can be setup based on the type of account structure. The available options are: Sweep Pool Hybrid
Structure Execution Charges based on number of sweep executions	These are periodic tier or slab based charges configured based on number of sweep executions per structure. This is applicable only for sweep structures.
Tax on Charges	These are taxes which are configured on charges.

The functionality also supports preferential pricing that the bank can apply for the selected customers.
The functionality also has “Charges Inquiry” where user can inquire, view & download the details of the charges applied and collected.

Ratio Method of Notional Pooling

The erstwhile “Optimization” method of interest calculation has been re-architected with new SDEs and is now called “Ratio Method".
In this method bank arranges preferential interest rates for participating accounts without fully offsetting credit and debit balances. This option can be used in jurisdictions where full notional pooling is not permitted.
Balance of the account is segregated in to compensated and non-compensated balances and interest rates applied accordingly.
With the support for Ratio Method, the application now supports four types of pooling - Interest Method, Advantage Method, Ratio Method and Interest Optimization.

Account Structure Approval

This feature enables the bank to approve or reject account structure creation or modifications initiated by the bank users as well as corporate users (using online banking channel application).
With this the approvals for account structures have been moved out of the authorization monitor to a separate “Structure Approval” screen.
In the “Structure Approval” screen, the bank users with appropriate rights can view the account structures pending approvals & approve or reject them by capturing the related remarks.
User can also view the approvals/rejections history of an account structure along with their approval/rejection comments.
Both newly created structures and modifications to existing structures will go through the approval process.

Notional Pool Simulation

This feature enables the bank user to simulate the notional pool account structure for an existing customer or a prospective customer. The pool simulation is available only for the “Interest” method of interest calculation where interest is accrued in the notional header and then reallocated to participating child accounts.
In case of an existing customer, the accounts participating in the pool and their balances can be pulled from the DDA system.
For a prospective customer, there is the option to upload accounts and balances data using file upload.
Using the accounts, the bank user can build a notional pool account structure and simulate it for a select period for which balance data is available.
Currently the application has been enhanced to provide a pool benefit advice that gives comparison of interest benefit to participating accounts with pooling and without pooling. Compares it the without pooling.
User also gets the option to convert the structure built for simulation to a real structure.

Support for ISO CAMT messages

With this feature Oracle Banking Liquidity Management now has support for upload of CAMT messages (Cash management) CAMT.053 and CAMT.052 for updating the Third-Party Account (External Bank Accounts) balances to support Multi Bank Cash Concentration (MBCC).
For CAMT messages Oracle Banking Liquidity Management can handle scenarios of duplicate messages, messages based on sequence if any and value dating of balances.
Camt.052 maps to MT941 and MT942. Similarly, camt.053 maps to MT940 & MT950

VAM Liquidity Customer Onboarding

With this feature Virtual Account Management customers who opt to use the Virtual Accounts in Liquidity Management will get on boarded in Oracle Banking Liquidity Management system automatically.
When virtual accounts are created with flag “Liquidity Management Allowed” as Yes, Oracle Banking Virtual Account Management will publish a Kafka event consuming which the relevant customer (if not already present) and liquidity management accounts are created in Oracle Banking Liquidity Management.

NLS Changes

Application has been enhanced with Natural Language Support for French, Arabic, Spanish, Portuguese, Chinese and Traditional Chinese.
Application menus, screens, Alerts, LOVs, etc. would be displayed (translated) based on the language preferences provided by the User on the User Maintenance screen.