Today Numerix announces a successful implementation of Numerix Treasurer by Cathay United Bank, one of the largest commercial banks in Taiwan. Driven by stronger corporate demand, the structured product market in Taiwan has grown significantly making Treasury Marketing Units (TMU) one of the most important departments within banks.
At the same time, the market has placed greater emphasis on stricter rules and reporting guidelines. In the face of these challenges, banks are thinking how to outperform in this competitive market.
Numerix Treasurer is the innovative solution which has been designed particularly for TMU. By simply booking trade details the platform automatically generates MTM and Greeks. Equipped with this functionality sales are capable of analyzing trade details and performing pre-trade scenario analysis.
Cathay United Bank Collaborates with Numerix to Enhance its TMU Sales Platform
“Our objectives are to streamline sales’ administrative services and provide proactive strategies for our customers. We believe this progress will continue to help expand our market share in Taiwan and other regions,” said Tony Kao, Senior Vice President of Financial Marketing Department of Cathay United Bank. “Risk management is also a key issue to address in today’s marketplace. In the past, it would usually take half, or even an entire day to obtain inquiry quotes from counterparties. Now we can obtain a reference price from Numerix Treasurer with one quick click and reply to customers in a short period of time. This enables us to better manage customer risks.”
To increase client satisfaction and reinforce their loyalty, sales also endeavors to provide more professional services. With the application of Numerix Treasurer, sales can conduct scenario analysis for their clients from the portfolio view and provide customized suggestions straight away, even during times of market turmoil. For some VIP customers, they can even generate PnL statements during specific periods of time and communicate effectively to clients.
Numerix Treasurer generates a wide range of reports which can be sorted by customer, product category and currency pair. A sophisticated reporting scheme helps banks meet current regulatory requirements for detailed PnL reporting. With the database readily available, customer modifications can be made as needed and the information can be transferred quickly and efficiently to regulators.
“We can’t just sit and wait for customers to come to us. Building a close relationship with them is always a top priority. We even want to focus on winning them back from our competitors,” said Kao. “As the Financial Supervisory Commission’s Asian Cup policy goes on, Cathay has made great efforts in improving its financial infrastructure. We see ourselves as the market leader in this area. We not only consider the growth of our TMU business important, but also look forward to having a strong mechanism in place for financial derivatives warehousing. To achieve comprehensive financial solutions for our clients, and integrating the trading platform with our current TMU sales platform is our ultimate goal in the near future.”
Steven R. O’Hanlon, Chief Executive Officer & President of Numerix concludes: “While pricing transparency is important to Cathay, they also required functionality that could manage the full trade lifecycle. Numerix Treasurer streamlines this process – enabling increased system interoperability and STP of derivatives products, bringing procedural consistency to the portfolio and valuation process. Our solution also helps Cathay United Bank differentiate the level of service it’s able to offer to clients. By enhancing operational efficiency, it allows the bank to manage their clients’ treasury risks effectively, making it easier to provide clients with best-in-class, superior services.”