US bank Wachovia is implementing a financial modelling system from Carreker Corporation to assess the impact of new technologies on its payments business.
Carreker says the Web-based technology will model the profit and loss impact of payment-related trends, strategies and initiatives across the bank at a product, customer, account and transaction level.
The system will enable the bank to detail cost and revenue implications as payment volumes shift, analysing product information across customers, geographies or time frames. The analysis features cost/revenue predictions of proposed new products and trigger settings to simulate the impact of predicted trends.
Don MacLeod, EVP and director of payment strategies for Wachovia, says: "We chose Carreker's PaymentsLink because it provides us with a robust tool that can manipulate large amounts of data to determine the profitability of our cross-organisational payment business and assess the impact of changing trends to the bottom line.
"The sophistication of this model will give us insights to make more informed payment decisions."
MacLeod is in charge of a group created specifically to develop and manage a corporate-wide strategy to maximise the value of Wachovia's payment business.
He says: "Our ultimate goal is to coordinate business units throughout the company and ensure a more cohesive, effective approach for understanding and managing the costs of payment infrastructure and solidifying customer relationships."