Oracle Adds Cash and Liquidity Management to Banking Cloud

Oracle has expanded its cloud banking portfolio to help lenders launch new transaction banking offerings.

Those offerings, announced Monday (Sept. 18), include cash management, liquidity management, and virtual account management, part of a suite of services designed to help banks bolster visibility, forecasting, and better control liquidity to help their clients leverage cash more effectively.

“With an estimated $1.7 trillion tied up in working capital, corporates are eager to boost cash management and optimize credit ingestion, both of which are critical to corporate performance and profitability,” Oracle said in a news release.

Oracle added that the new solutions offer the ability to be embedded directly within a company’s enterprise resources management systems, allowing for real-time payments and settlements and “unprecedented” cash cycle optimization.

“In addition, the new enhancements to limits and collateral management allow banks to quickly digitize and simplify the entire credit facilities life cycle so they can onboard corporate customers in minutes, not months,” Oracle said.

As PYMNTS wrote earlier this year, the cloud provides a multitude of advantages to banks undertaking a digital transformation, such as enhanced data security, increased operational efficiency, better access to software applications and more flexibility for adding new technology.

“All these improvements are accomplished by migrating bank data to much more powerful systems in the cloud, which handily outstrip the capabilities of on-premises technology stacks,” that report said.

These improved capabilities can easily allow banks to lower costs, introduce new value-added services and improve user experience to foster customer retention. In one survey, 44% of bank executives said the cloud’s biggest advantage was its ability to automate processes, while 40% said it was the ability to create new products and services.

Depending on their resources, and their executives’ willingness to try new technology, banks have various levels of cloud integration. Research shows that 28% of banks have more than 30% of their applications in the cloud, while 45% have between 11% and 30% in the cloud, and 27% are less than 10% cloud-based.

“More than one-third of banks surveyed said they had not maximized the business benefits of their cloud investments, however — likely because of the challenges cloud integration poses for the banking industry,” PYNNTS wrote.