BNY Mellon is adapting to the increased focus on cash management as the Federal Reserve hikes interest rates to try and combat historically stubborn inflation.
To that end, the bank and custody platform has expanded the services of its LiquidityDirect platform to include access to a host of cash and cash-equivalent investments, including mutual funds, ETFs and even links to community banks for higher short-term yields.
Georg Maganas, global head of liquidity services at BNY Mellon, said the latest iteration of LiquidityDirect was “18 months in the making.”
“Our clients have conveyed a need to streamline management of their short-term investments and we listened,” he said. “Through the expansion of our LiquidityDirect product suite, we are providing them with a comprehensive set of short-term investment options through a single point-of-access. We will continue evolving the platform to enhance our clients’ experience by incorporating the latest market developments, investment options with seamless integration and data management they demand.”
The LiqduidityDirect platform is available to anyone custodying assets with the bank, including advisors, corporate treasurers and finance executives, and includes access to “more than 100 investment vehicles.”
The expansion coincides with the integration of SAP’s Treasury Management workstation, creating efficiencies for self-directed cash management, payments and investments.
Maganas said the developments build on LiquidityDirect’s existing platform integration with several other leading treasury workstations and cash management systems, including Indus Valley Partners, GTreasury and Hazeltree.
Regarding the timing of the expanded access to cash management, Adam Vos, chief executive of BNY Mellon Markets and Execution Services, said the need for liquidity is ongoing and not just for times of rising rates.
“Throughout market cycles, the global demand for liquidity remains paramount for all market participants,” he said. “A critical component to meeting clients’ needs is providing integrated access from a single source to an array of liquidity solutions.”
Focus is reportedly on a three year period from 2021-2024.
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