Financial and institutional banking undergone a transformational technological shift, meaning working in is increasingly commonplace. This is not the case for payments and settlement, which can still take days. Baton Systems explores how its innovative solutions can efficiency, freeing up capital that can be for more strategic investments.
Technology and innovation are driving numerous advances across the financial and institutional banking world, yet payments and settlement have been left behind. While much of the world works in , still takes days. In other words, you can trade in , but cannot pay or receive securities instantaneously. Each day, this ties up billions of dollars worth of securities for pre-funding and collateral, limits liquidity and puts stress on balance sheets. Furthermore, legacy systems require manual interventions for all parties of a transaction, adding delays and risks to the process and disrupting exceptions in breaking straight-through processing workflows. In many cases, it also requires a significant amount of pre-funding, adding to costs for all parties.