Demonstrating its commitment to help financial services institutions grow profitably and optimize risk-adjusted performance, Oracle today announced a comprehensive and integrated suite of financial services analytical applications for enterprise performance management (EPM).
Now more than ever, financial institutions and regulators are focused on the need to measure and meet performance objectives adjusted for risk, price products to reflect their true risk, and better understand how performance is impacted by threats to liquidity and capital adequacy.
This Oracle Financial Services analytical applications EPM suite builds on Oracle's vast experience in supporting many of the world's most demanding, high-volume and high performance financial institutions over the last decade.
It is based on the merged capabilities of Oracle Financial Services Applications (OFSA), Oracle's Hyperion, PeopleSoft EPM, and Oracle Reveleus applications. Oracle worked with a 17-member customer advisory board on every step of the design process.
The applications are all built on the same financial services data model and applications architecture as the Oracle Reveleus suite of enterprise risk management applications, making it easier for customers to add additional applications with only marginal incremental investments.
With the release, Oracle is now uniquely positioned to help financial institutions seeking to actively incorporate risk into decision-making, and define and manage plans crossing risk and performance management using best practice processes and techniques.
New Oracle Financial Services Analytical Applications for EPM
Oracle Financial Services Profitability Management - helps financial institutions to calculate the profitability of products, channels, segments, and individual customer relationships on a risk-adjusted basis by enabling them to perform complex allocations of operating costs, net interest, capital and other components to the underlying transactions and balances.
Oracle Financial Services Funds Transfer Pricing - enables banks to determine the account level spread earned on assets and liabilities, and the spread earned as a result of interest rate exposure. The applicatcation supports a comprehensive range of transfer pricing methodologies that are based on industry best practices in order to help calculate accurate results at the lowest available level of detail.
Oracle Financial Services Pricing Management, Transfer Pricing Component - provides real-time transfer rates to support pricing loan transactions that reflect immediate market conditions. Its risk-based pricing methodologies use the transfer pricing methodology and prepayment assumptions found in Oracle Financial Services Funds Transfer Pricing, and include all elements of the profit and loss for an account.
Oracle Financial Services Asset Liability Management - helps financial services institutions manage and monitor interest rate risk, liquidity risk, foreign currency risk and earnings risk. The application models every loan, deposit, investment, and portfolio individually, to help institutions better understand the risks they have assumed and their sensitivity to economic conditions.
"In today's environment, it is critical that financial institutions be able to perform a cross-functional analysis of the traditional areas of management reporting that includes both risk and performance measures," said Don Russo, Senior Vice President, Oracle Financial Services Global Business Unit. "The Oracle Financial Services analytical applications EPM suite enables institutions to break down the organizational silos that exist today between the risk and finance functions in order to help maximize profitability and achieve management excellence."
"Market conditions are demanding that financial institutions have access to the information needed to make proper decisions that align with business strategy and factor in risk," said S. Ramakrishnan, CEO of Oracle Reveleus and Oracle Mantas products, Oracle Financial Services Software. "Oracle Financial Services analytical applications combine the best-of-breed functionality across our product lines to create a single, integrated financial platform across risk and finance, spanning key areas including: governance, risk and compliance; enterprise risk management; enterprise performance management and customer insight."
"Stresses and strains on financial applications, coupled with an imperative to manage and report risk at an enterprise level, have led many institutions to consider implementing an architectural approach to financial data management," according to Kathleen Khirallah, Lead Analyst for Tower Group's Retail Banking research and advisory service. "Adopting such an approach begins with the acknowledgment that financial data is the lifeblood of the organization and must be leverageable across the bank. An architectural approach can make data from the financial applications more readily accessible to multiple users within finance and risk management."
"The new Oracle Financial Services analytical applications for EPM clearly advance the state of the art," said Mike Pugliese, Partner and Leader for Capco's Finance, Risk & Compliance group. "Oracle is on the leading edge of data convergence and transparency. By integrating the suite onto a common data model and applications architecture that is shared by the Reveleus suite of enterprise risk management applications, our joint customers are now able to produce the integrated risk adjusted performance metrics that have been elusive to date."