Optimized Liquidity thanks to Forecasting Engine
Inaccurate liquidity forecasts hampered the creation of effective financial strategies for our client. Our forecasting engine, which generates predictions for a variety of liquidity time series, significantly increases the accuracy and speed of forecasts, enabling substantial cost savings.
Challenge
Our client faced inaccurate liquidity forecasts due to manual and time-consuming forecasting processes. These inaccuracies posed a significant financial risk, as they impaired the company’s ability to plan and execute effective financial strategies.
Approach
To tackle these challenges, we developed an automated forecasting engine. This solution utilized cutting-edge algorithms and a powerful cluster computing backend. Metadata and business KPIs were integrated to enhance forecast accuracy. We developed a probabilistic model to estimate uncertainties in the forecasts, and optimization was performed based on business-relevant metrics.
Results
The implementation of the new engine led to annual virtual interest savings of more than €1.5 million. The speed and accuracy of forecasts were significantly increased, improving the company’s financial planning capabilities and minimizing potential risks.
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