Baseline Capital Limited and Quadrant Risk Management (International) Limited today announced an agreement under which the two companies will partner to provide Basel II solutions to the UK retail lending sector.
The deal includes the supply by Quadrant to Baseline of the core elements of Quadrant's B2 Basel II solution. Baseline will adopt Quadrant's B2 Enterprise-wide Risk Data Repository, built on Sybase® foundation technology, and the B2 "Basel II Workbench" analytical and statistical engine, built on SPSS's® Clementine® technology.
Baseline has been established to provide a Basel II data pooling and analysis facility for the UK retail mortgage sector. The company's Basel II facility has been designed to enable mortgage lenders to comply with the IRB Approaches for Capital Adequacy calculations, in accordance with the new Basel II rules as applied in the UK by the FSA.
Richard Coates, Managing Director of Baseline, said: "Embedding key elements of the B2 offering within our overall end-to-end solution gives us a unique opportunity to very quickly provide our clients with the required Basel II data management, statistics and a whole lot more."
B2 has been developed in partnership between Quadrant and Sybase using Sybase's market-leading Industry Warehouse Studio(tm) data platform as its foundation technology. This solution comprises Sybase's popular Adaptive Server® IQ database to enhance data handling and business intelligence capacity and SPSS's widely-used predictive analytics tool, Clementine, which forms the foundation for the Basel II Workbench's statistical calculations for Probability-of-Default and other risk metrics.
Chris Howgego, Managing Director of Sybase (UK) Ltd said: "Analysis of risk at all operational levels is essential to every financial institution, particularly as the regulators become increasingly proactive. This solution combines Quadrant's, Baseline's and Sybase's banking expertise, market awareness and technology - a keen mix of knowledge and experience with information liquidity and analysis which will help to drive new business."
The B2 solution comprises seven modules that facilitate financial institutions' fast-track implementation of Basel II compliant data collection, collation, analysis and reporting. The distinction between this solution and other market offerings is that each module is capable of being implemented on its own within a bank's existing infrastructure, maximising the benefit of any existing work carried out towards an intended Basel resolution.
Gary Styles, Director of Baseline, said: "By working in partnership we are able to leverage and harness our companies' total resources to deliver a truly leading edge solution to Baseline's clients."
Paul Ashton, a Principal of Quadrant, added: "B2 is a unique product where banking consultancy, provided by bankers to bankers, is supported by established, state-of-the-art technology that will fit within any existing IT architecture. That combination facilitates Basel II compliance and best practice in credit and operational risk management across all asset classes and business lines. Baseline and its clients will be among the first beneficiaries in the UK."