Real-Time Liquidity Management for Cross-Border Payments: Where Are We Now and What’s Next?

For decades, the industry has operated using batched end-of-day settlement models and static liquidity buffers. But as customer expectations evolve and regulatory scrutiny intensifies, this approach is no longer suitable. 

The question is no longer whether we need sophisticated intraday liquidity management—it's how soon banks can get there.

Current State: A Patchwork Approach to Global Liquidity

Most banks today still rely on a patchwork of tools and data sources to understand their global liquidity positions. Discussions with leading global financial institutions reveal a recurring theme: while some banks have invested heavily in intraday monitoring for their primary cleared currencies, unified visibility across their correspondent banking network remains limited.

“The shift towards a 24/7 payment system means that Treasury, Global Markets and Operations departments must adapt to accommodate an extended settlement period and increased uncertainty around liquidity positions. To manage this uncertainty, having a near real-time view of cash balances is crucial as it enables flexibility and a dynamic approach to cash and liquidity management.”

David Waller, Head of Funding Execution and Liquidity – CommBank

This creates a significant blind spot. For currencies that are not self-cleared, banks depend heavily on their nostro partners. Even when some providers offer portals for viewing balances, many Treasury teams still focus on projected end-of-day positions rather than real-time movements, leaving gaps in decision-making during continuous settlement cycles.

Approaching Future State: Phased Implementation and Key Lessons

Implementing a 24/7 framework for multi-currency liquidity is neither a sprint nor a leap—it is a phased journey. Institutions that are further along this journey have adopted phased roadmaps: 

1. Start with retail payment inflows 
2. Progress to retail outflows 
3. Expand into wholesale and high-value transactions

Incremental steps allow teams across treasury, risk, operations, and technology to adapt gradually, resolve early bottlenecks, and build confidence in new systems and processes.

Although progress has been meaningful, banks still face complex challenges. And while there is not universal solution, the challenges also present opportunities. Below are combined perspectives on the key challenges, opportunities and lessons along the way.

1. Liquidity Constraints in Non-Major Currencies: Access, Cost, and Customer Expectations

Banks can typically offer strong real-time liquidity in their domestic and major currencies (USD, EUR, GBP, JPY). However, they face limitations in less liquid market due to lower holdings, restricted intraday markets, or regulatory and operational barriers in emerging corridors.

This is where the cost-liquidity trade-off - between maintaining surplus balances for speed versus optimising liquidity efficiency - remains difficult. Banks must carefully select which currencies to support 24/7 and assess the costs versus benefits of doing so.

To navigate this, banks must:

• develop models that capture the true cost of liquidity (accounting for operational readiness, infrastructure, and compliance),
• communicate clearly with business units and customers on realistic expectations for 24/7 coverage, and
• track macro trends such as central bank liquidity measures that influence funding strategies.

Clear, data-driven communication helps organisations make informed decisions about which currencies to prioritise for real-time capability.

2. Managing Cash Flow Volatility with Real-Time Monitoring and Better Forecasting

Real-time payments dramatically change cash flow behaviour. Transaction activity becomes more unpredictable, with spikes and lulls occurring at any hour, influenced by behavioural changes, market conditions, or retail transaction patterns.

Banks therefore require:

• near real-time visibility into global cash balances across all accounts,
• revamped forecasting models capable of handling faster, less predictable flows, and
• scenario-based planning for both typical and stressed conditions.

Without timely data, banks cannot support dynamic payment requests or optimise intraday positions across multiple currencies.

3. Legacy Infrastructure and the Need for Collaborative Modernisation

Many banks still grapple with legacy and siloed systems, limited interoperability, and fragmented data sources, hindering their ability to adapt and scale quickly. Even when fintechs and system vendors offer real-time intraday solutions, integration across multiple internal and external platforms – and alignment across teams – remains complex.

Successful modernisation requires:

• unified dashboards and global consolidated cash views, 
• real-time tracking and intelligent decisioning engines,
• strong collaboration across treasury, risk, operations, and technology,
• disciplined execution and sustained leadership alignment.

Infrastructure uplift is not simply a technology challenge; it is an organisation-wide transformation.

4. Intraday Liquidity Regulations and the Need for Advanced Risk Modelling

Regulatory expectations are evolving to address the increasing importance of intraday liquidity management. Forward-looking banks are anticipating more prescriptive requirements, with some already moving to:

• proactively engage with regulators and to help shape practical, risk-based frameworks for 24/7 operations,
• invest ahead of legislative mandates,
• embed dynamic scenario analysis and stress testing in daily liquidity management processes,
• apply intraday risk metrics that monitor currency exposures in minutes—or seconds—rather than hours, and adapt hedging strategies to shorter settlement cycles

5. Rising Operational and Settlement Risks: Strengthening Networks and Governance

Instant settlement introduces new operational, credit, and counterparty risks. Payment exception management, liquidity sweeps, and cross-zone settlements require moving from traditional “batch and wait” to “continuous and respond” processes.

Success depends on:

• strong, innovative correspondent and nostro relationships, 
• partners capable of supporting not only current needs but also future 24/7 demands,
• predefined, real-time decision frameworks,
• governance frameworks that enable accountability and continuous performance monitoring.

“We’re on the cusp of a once-in-a-generation transformation in cross-border payments and liquidity management. The promise of 24/7 instant clearing in any currency is tantalising; the hurdles—technological, operational, risk, and regulatory—are real and complex. Our collective experience to date shows that success demands phased evolution, technology investment, new governance, and a spirit of partnership both inside and outside the bank.”

Susan Yang, General Manager, High Value and International Payments – CBA

Conclusion: The Future of 24/7 Payments Depends on 24/7 Liquidity

Moving to 24/7 cross-border payments is no longer the hard part. The greater challenge lies in real-time liquidity management: ensuring continuous funding across currencies, markets, and partner networks.

A gradual approach—supported by connected systems, automation, and collaboration across the organisation—enables proactive intraday liquidity management as market conditions and regulations evolve. It also positions banks to unlock new revenue opportunities and drive innovation.

In an increasingly competitive payments landscape, real-time liquidity expertise across currencies will be a key differentiator for banks’ competitiveness, resilience, and customer trust.