Proactive liquidity management is becoming more critical as rapid competitive shifts continue. Consumers are more open to the expanding alternatives available that can make their money work for them.
A key objective of liquidity management is to avoid major interruptions to your business model strategy by having to acquire funds at excessive cost.
To support this objective, decision-makers need to augment their current point-in-time view by having a strategic outlook when managing liquidity. Too much liquidity can stifle business opportunities and too little can threaten the institution’s competitive position and possibly viability.
Our Liquidity Analysis Service is forward-looking and dynamic. It helps decision-makers easily see how well they are positioned to meet their strategic liquidity requirements and balance external stressors. We automatically include 3 views:
- The base liquidity position, in light of the credit union’s strategic goals
- A stressed liquidity scenario
- A possible solution to that stress scenario so decision-makers can see ahead of time what it may take to manage liquidity in the stressed environment
In addition, our consultants can help decision-makers think through establishing liquidity triggers and/or risk limits. These views help decision-makers understand in advance what actions they may need to take should their stressed scenario become a reality.