Czech bank Modrá Pyramida deploys SunGard's BancWare for ALM
15 January 2008 | 1774 views | 0
SunGard today announced that Czech bank Modrá Pyramida Stavební Sporitelna a.s. (Modrá Pyramida) has selected SunGard's BancWare solution for asset/liability management (ALM) help enhance its financial planning processes.
The solution will help the bank measure the interest rate risk inherent in the balance sheet, perform customer behavioral analysis and calculate funds transfer pricing (FTP).
The Prague-based bank, a wholly owned subsidiary of leading Central European bank Komercní Banka, specializes in financing the housing needs of its clients according to the Buildings Savings Act.* With mortgages and bridging loans as its core focus, the bank's performance is sensitive to changes in interest rates and customer behavior. Therefore Modrá Pyramida required a reliable and sophisticated analytical engine to help it manage the volatility of its business. Having previously used time-consuming and labor-intensive spreadsheets, outsourced simulation and in-house solutions, the bank recognized the need for a more robust solution that would be flexible enough to scale according to its growing requirements.
Using SunGard's BancWare Data Integration to feed data from its core banking system into the BancWare ALM tool will mean that Modrá Pyramida can rely on accuracy and data integrity as the key foundation for its balance sheet analysis. The bank will also be able to run more effectively cash flow analysis and profit and loss reporting as part of its financial planning and forecasting process. In addition, the solution will allow it to run scenario analysis based on predicated changes in interest and foreign exchange rates, future customer behavior simulations determined by seasonal and environmental trends and option adjusted value at risk calculations.
Jirí Votrubec, director of finance at Modrá Pyramida, commented:, "We sought a proven solution with modeling capabilities that could meet our specific requirements. Fortunately we did not have to look far for a strong reference point, with our parent bank already successfully using SunGard's BancWare for ALM. We are confident that SunGard will deliver within our short time-frame and that with the help of its Czech-speaking consunnsultants we will be improving our profitability by the start of next year."
Andreas Hug, managing director, EMEA, for SunGard's BancWare business unit, said, "The selection of BancWare by Modrá Pyramida is proof of our ability to cater for institutions both large and small with scalable, flexible software solutions to meet their varying requirements. Modrá Pyramida, a niche player in this specialized industry, required a sophisticated ALM tool - SunGard was able to provide cost-efficient technology and complex modeling within a user-friendly environment."