Unlocking the Potential in Collateral

The financial services sector could save more than €4 billion annually in collateral management costs by addressing operational inefficiencies, according to a survey by Accenture and Clearstream. The research, which was based on publicly available information, together with interviews with 31 executives at 16 global banks, found that decentralized operations and unaligned business objectives are limiting banks’ ability to manage collateral efficiently. As a result, banks are unable to maximize liquidity, keep down financing costs and are forced to maintain excess collateral buffers.