Correspondence banking is the base of the global financial framework. It enables corporations, banks, and individuals to facilitate international trade, make cross-border payments, and conduct financial transactions on a daily basis.
So, FI departments have a huge workload on their shoulders to manage relationships with key FI clients while achieving assigned revenue and return targets and managing FIs, non-FIs, and sovereign lines in a timely manner.
In this blog, we’ll first evaluate the needs and challenges of FI departments. Then, we’ll explore the functions of Globit RISQ FI to understand how it helps FI departments reduce operational risks, improve efficiency, and manage all credit lines in one place.
As financial institution departments mainly allocate country and counterparty limits, they wear many hats to manage banking relationships, monitor credit lines, and conduct a continual risk assessment to finalise credit letters and transactions.
Managing all these operations seamlessly and acquiring a holistic and transparent view of all facilities across the entire banking spectrum is not easy. The FI departments should be able to monitor credit lines in real time and control the risks in the markets, operations, and credit lines constantly. In addition to that, they should be able to communicate with treasury and credit teams constantly through an effective internal communication strategy.
So managing internal communication is the biggest challenge for FI departments. On the other hand, as correspondent banking works with a risky mechanism that can be vulnerable to money laundering, fraudsters, and unverified due diligence checks, the second biggest challenge for FI departments is risk management.
Therefore, FI teams need smart finance solutions to easily handle problematic credit operations and credit risks, ensure internal collaboration, and manage and analyse transactions in a shorter time.
Globit RISQ FI is the industry’s first dedicated institutional banking solution that puts internal communication at the heart of credit line management. The solution covers everything from controlling and monitoring global limits across all divisions to onboarding new financial counterparties and servicing ongoing credit lines.
Here is a closer look at the product features of our end-to-end FI solution.
RAROC is an essential tool for correspondent banks to evaluate risks and returns associated with their operations. This is why real-time RAROC calculation is one of the most contributional features of Globit’s RISQ FI.
The real-time RAROC calculation on the transaction level allows task prioritisation based on the RAROC value calculated. This way, the return on investment (ROI) will be maximised.
Additionally, calculating risk assessment based on ROI increases the profitability of your operations. In the end, this enables you to approve beneficial and risk-free transactions all the time.
As we stated before, being responsive with communication and collaboration is essential for FI departments to improve operational efficiency. Therefore, to help you create an intelligence collaboration and unlock hidden synergies, Globit’s RISQ FI provides you with the industry’s first “newsfeed” feature.
Thanks to our solution, you can utilise a secured and stored real-time chat functionality to ease cross-departmental communication during the credit application process.
This way, our solution enables you to save time and focus on improving your productivity.
We offer agile, innovative, and customer-centric solutions and services for our partners, with 23+ years of experience in building, implementing, and supporting treasury IT solutions. So we are here to add value to your operations with complete correspondent banking and compliance solutions and services.
Let’s team up to help you eliminate any friction in your operations and bring your FI department to a whole new level with smart finance solutions. Feel free to contact us if you need more information about our RISQ FI solutions and services.