SAP SE (NYSE: SAP) today announced a new foundational offering that aims to help financial services and insurance companies better manage their integrated risk and finance processes.
The SAP® Cost and Revenue Allocation for Financial Products application is expected to help banks and insurers streamline profitability for insurance and banking products. Powered by the SAP HANA® platform, SAP Cost and Revenue Allocation for Financial Products is intended to give finance executives the capacity to process and analyse vast amounts of corporate data to adapt more readily to a challenging market environment. The announcement was made at the SAP Financial Services Forum, being held in London June 23-24, 2015.
“Profitability and cost management are becoming increasingly important as the industry becomes more competitive,” said Ross Wainwright, global head, Financial Services Industries, SAP. “Having the ability to process core data points quickly across the entire organisation gives banks and insurers the insight they need to stay ahead of their competitors and increase their return on investment.”
As reported by the research firm IDC, financial services firms have a strong need for solutions that consolidate risk and finance. However they are still at varied levels of integration when it comes to connecting their risk and finance offices through technology. SAP Cost and Revenue Allocation for Financial Products is meant to overcome technical limitations in the allocation of costs and real-time data analysis at the most granular level.
“Leading banks and insurers are increasingly looking to consolidate their operations onto a single, integrated IT platform that provides both efficiency and business intelligence, but research shows that only about half of these companies have accomplished this goal,” said Li-May Chew, research director, IDC Financial Insights. “Respondents to our latest survey with SAP indicate that C-suite leaders are most concerned with expanded regulatory environments and economic uncertainty. By adopting new technology solutions like those from SAP, companies can work smarter and better plan and predict future changes in the market.”
SAP Cost and Revenue Allocation for Financial Products is expected to improve business processes. The application enables banks and insurance providers to process higher volumes of data, provide a more detailed analysis of data and accommodate a wide variety of allocation rules. With these benefits, they can manage profitability and performance measurement better.
SAP Cost and Revenue Allocation for Financial Products is designed to work seamlessly with the SAP Simple Finance solution, banking services from SAP and SAP Insurance Analyzer analytic applications.