SunGard Trading and Risk Systems, an operating group of SunGard (NYSE: SDS), today announced that First National Bank of Omaha (FNB Omaha) has selected SunGard's BancWare to support interest rate risk management and income simulation.
FNB Omaha aims to enhance balance sheet management with the inclusion of analytics and modeling techniques provided by BancWare. By adding BancWare's asset and liability management (ALM) capability to BancWare's data integration solution, already in place, FNB Omaha will be able to leverage its consolidated data resources for improved transparent, integrated and consistent risk measures.
FNB Omaha is implementing BancWare in order to reap the benefits of a single vendor solution and improve its risk/return analysis. FNB Omaha can leverage its existing investment in BancWare to achieve consistency across its balance sheet data, which will help improve the accuracy of measures for interest rate risk, funds transfer pricing, credit analysis, and capital allocation.
Andrew Schmillen, director of interest rate risk at FNB Omaha, said, "BancWare provides the advanced analytics (stochastic as well as deterministic interest rate risk modeling) that we require to enhance our interest rate risk management program. For example, with BancWare, we aim to include more than just the protection of future margins in our interest rate risk management practice, by encompassing current and future margin improvement including various risk management tools like derivatives."
Mr. Schmillen added, "BancWare can also help us to streamline and simplify data integration across profitability and ALM, helping to improve data consistency and integrity. Using BancWare to help solve our data management challenges, FNB associates will have the ability to focus most of their attention on analysis and reporting instead of gathering, processing, and reconciling data."
Terence Faherty, president of SunGard's BancWare operating unit, said, "BancWare helps customers to implement their desired level of complexity according to their business needs, with the ability to add functionality as required. Our customer base demonstrates the flexibility and scalability of our solution, able to support the needs of highly localized institutions around the world as well as large, international banking operations. BancWare's ability to integrate ALM with budgeting and profitability measurement can help customers to achieve greater operational efficiency and improve decision-making by providing a more complete and accurate detailing of their balance sheet."