Vermeg announced it’s launched a cloud-native collateral optimization solution to help banks cut costs, boost liquidity, and stay compliant. It reduces manual intervention, eliminates over-pledging, and provides actionable insights that directly impact liquidity and funding costs.
Between rising funding costs, tightening regulatory ratios, and heightened market volatility, optimization has become a strategic priority. In response, Vermeg has launched Optimizer, designed to simplify and accelerate collateral optimization while addressing the industry’s most pressing pain points.
Unlike traditional, fragmented processes, Optimizer is structured around four core pillars that translate into tangible business benefits:
- Agreements digitization and eligibility automation: turning complex collateral agreements into a reliable, digital optimization rulebook
- Centralized inventory management: consolidating exposures and collateral pools into a single, real-time view
- Configurable optimization strategies: enabling institutions to preserve liquidity, minimize costs, and run what-if scenarios under stress conditions
- Automated and continuous allocation: producing optimal pledges in real time and reassessing them as markets shift
“In today’s highly regulated and volatile financial markets, institutions struggle with fragmented, siloed collateral management systems, leading to escalating funding costs, operational inefficiencies, and the risk of sub-optimal asset usage,” said Khaled Ben Abdeljelil, senior vice president for Banking Market Strategy at Vermeg, in a statement.
“Our Optimizer directly solves this challenge by providing an enterprise-wide, real-time view of all collateral inventory and collateral demands. Utilizing advanced optimization algorithms, our Optimizer automatically identifies the cheapest-to-deliver eligible assets, minimizes overall margin requirements, and frees up HQLA for more strategic purposes, transforming collateral management from a reactive cost center into a proactive driver of efficiency and competitive advantage.”