Methodology For Improving Investment Flow Management In Commercial Banks: The Role Of Digital Transformation

Abstract

Commercial banks oversee investment flows throughout a multifaceted lifecycle, encompassing funding acquisition, treasury allocation, portfolio development, settlement, accounting acknowledgment, risk assessment, and regulatory compliance. These flows are still broken up across product silos and old platforms in many institutions. This causes latency, breaks in reconciliation, lack of transparency in intraday liquidity, and unnecessary operational risk. Digital transformation alters the economics and management of investment flow by facilitating real-time data acquisition, standardized communication, sophisticated analytics, and automated process orchestration. This article presents a methodology for enhancing investment flow management in commercial banks via a digitally enabled operating model that incorporates (i) comprehensive flow transparency, (ii) consolidated data governance and risk-data aggregation, (iii) predictive and prescriptive analytics for liquidity and valuation dynamics, and (iv) robust, auditable workflow automation. The methodology is shown as a design-science framework with measurable results, focusing on how to put it into practice while meeting regulatory standards for operational resilience and accurate risk reporting. The results section combines the expected benefits of using standardized payment and settlement data, real-time tracking, and enterprise-wide risk-data aggregation principles with cloud-ready analytics and strong controls for third-party dependencies. The article concludes that digital transformation is not just an IT modernization program; it is a way for managers to control investment flows as a strategic resource, improve the quality of decisions, increase capital and liquidity efficiency, and boost supervisory confidence when used with strict governance and resilience-by-design.