Getting the Banks their Modern-day Safety Net

Human beings have proven themselves to be good at many different things, and yet there is little we do better than growing on a consistent basis. This progressive approach, on our part, has already enabled the world to hit upon some huge milestones, with technology appearing as a major member of the stated group. The reason why technology enjoys such an esteemed stature among people is, by and large, predicated upon its skill-set, which ushered us towards a reality that nobody could have ever imagined otherwise. Nevertheless, if we look up close for a second, it will become clear how the whole runner was also very much inspired from the way we applied those skills across a real world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, and consequentially, kickstarted a tech revolution. Of course, this revolution then went on to scale up the human experience through some outright unique avenues, but even after achieving such a monumental feat, technology will somehow continue to produce the goods. The same has grown increasingly evident over the recent past, and assuming one new fintech-themed development shakes out just like we envision. It will only make that trend bigger and better moving forward.

Oracle has officially launched an assortment of cloud-native services that are all designed to help banks solidify their finance and risk management posture. According to certain reports, the stated assortment begins from Oracle Financial Services Profitability and Balance Sheet Management Cloud Service, which will leverage built-in analytics and artificial intelligence to deliver dedicated applications for Profitability Management and Customer Insights, Funds Transfer Pricing, Asset Liability Management, and Balance Sheet Planning and Optimization. Given how they touch on so many different disciplines, these applications should provide banks with the lowdown they need to understand their profitability and interest rate risk. Next up, we have Oracle Financial Services Asset Liability Management Cloud Service. This one is meant to bring full balance sheet and income statement modeling capabilities that can model any financial instrument in any currency down to the transaction level, doing so through the channel of  a high-performance, scalable, common cash flow engine. By producing such detail-oriented models, the service generates overall risk exposure of the balance sheet, thus ensuring an informed brand of decision-making, while simultaneously birthing organization-wide transparency.  Then, there is also an Oracle Financial Services Funds Transfer Pricing Cloud Service in play. Here, the idea is to resolve a longstanding question of how to accurately gauge your profit spread across different metrics. You see, Oracle’s Funds Transfer Pricing Cloud Service is well-equipped to let you understand the spread earned on assets and liabilities, and the spread earned as a result of interest rate exposure for each customer account.

“Recent events demonstrate that financial institutions have an opportunity and obligation to better use data to understand and manage risk,” said Sonny Singh, executive vice president and general manager of Oracle Financial Services. “With powerful analytics and AI built-into our new cloud solutions, firms can bolster their risk management, economic stress-testing, and scenario analysis capabilities to mitigate exposure and get ahead of the regulatory response that is likely to come from these banking failures.”

Hold on, we aren’t done yet. The last in line of the new solutions is Oracle Financial Services Profitability Management Cloud Service. We referred to another solution where you could analyze the organization’s profitability, but the users of this particular product can expect to also have clear visibility into various profitability drivers and risk-adjusted performance across multiple dimensions including product, business unit, legal entity, and channel. Furthermore, once you have the neccassary information, you can go ahead and bank upon the service’s robust measurement protocols to unlock access of reconcilable profitability and performance insights, insights that are geared towards creating a wholly risk-proof strategy.

Interestingly, the said services can be treated as standalones, or in case the user feels a need, they can even work together in a complimentary manner.

“Financial institutions need to look beyond what’s regulated today to factor in behavioral and market-implied scenarios, to protect themselves – and their customers – from catastrophic risk in the future,” said Sid Dash, Chief Researcher at Chartis Research. “With the right tools and a common data foundation that can handle optionality and the behavioral aspects of their business, firms can develop a much more holistic approach to managing both risk and the regulations to come.”