SunGard today announced that Sanpaolo Bank S.A. Luxembourg has selected SunGard's BancWare Profitability to measure its profitability and performance, and BancWare Capital Manager for Basel II and IAS 39 compliance.
BancWare Profitability is a performance measurement solution that facilitates multi-dimensional analysis combined with flexible reporting and distribution options. BancWare Capital Manager is a modeling and analysis solution that helps financial institutions meet Basel II regulatory compliance requirements and develop risk-sensitive approaches for managing economic capital.
As banks advance their Basel II initiatives, many are using the opportunity to more closely align capital and profitability management practices. To do so effectively requires greater integration across departments between the data and systems that banks use for credit, market and operational risk management. This has led many institutions to seek solutions which facilitate the integration of data and risk management across the enterprise.
BancWare Profitability will provide multi-dimensional analysis and reporting, such as the ability to associate activity-based costs with any dimension of profitability, helping Sanpaolo Bank to more accurately measure the profitability of specific customers, delivery channels, branches or products. BancWare Profitability will replace an Excel-based solution at Sanpaolo, helping the bank achieve greater automation and operational efficiency.
In addition to using BancWare Profitability to automate and improve the accuracy of its profitability measurement, Sanpaolo Bank has also selected BancWare Capital Manager, which shares the same reporting infrastructure. The complete solution will help the bank to improve efficiency and consistency by standardizing reporting for profitability, IAS 39 and Basel II.
BancWare Capital Manager is an end-to-end solution for Basel II, including data management, factor generation (PD,LGD,EAD) and compliance with Pillars 1, 2 and 3. BancWare Capital Manager's auditable, open platform will help Sanpaolo Bank’s staff to more easily modify calculations and cost-effectively adapt to evolving regulatory and internal requirements. The ability to generate customized reports in a user-friendly environment was key to the bank's selection of BancWare. Sanpaolo Bank will be able to map data from other core banking systems to provide the full range of statistical and supervisory reporting required by the local regulator.
Alfonso Belardi, head of accounting at Sanpaolo Bank, Luxembourg said, "We selected SunGard's BancWare solution primarily because of the analytics, flexibility and extensive reporting functionality. Being an off-shore branch, we are required by our head office to submit reports on our performance at organizational, product and customer levels, as well as the regulatory reports mandated by the Basel Accord. BancWare will help us to fulfill both of these requirements in a cost-effective, timely and efficient manner. SunGard's professionalism, customer-centric approach, strong global reputation and in-depth knowledge of the business issues were also fundamental deciding factors."
Terence Faherty, president of SunGard's BancWare business unit, said, "As banks move towards Basel II compliance, we are able to help unify risk, profitability and capital management practices via our common risk and data structure. We are committed to helping Sanpaolo and banks around the world to improve decision-making through the effective assessment of profitability and performance, and to more easily meet the necessary regulatory requirements for capital management and produce mandated regulatory reports."
Separately, SunGard today announced that Evolution Capital Management (Evolution), a $1bn hedge fund based in Honolulu, is implementing SunGard's cross-asset trading platform, FRONT ARENA to support its enterprise trading, risk management, processing and reporting requirements.
Evolution employs a multi-strategy investment style covering equity, equity derivatives, convertibles, credit derivatives and structured products, with a specific focus in the Pacific Rim. FRONT ARENA will provide Evolution with secure modeling, secure and auditable pricing and, automated trading and risk management functionality.
Evolution will also deploy FRONT ARENA's built-in models and data from SunGard's Monis for the valuation of convertible bonds and asset swaps. Monis provides management and analysis, pricing data, and specialized training for convertible arbitrage traders.
FRONT ARENA connects seamlessly and in real time to third-party systems, data providers, prime brokers and hedge fund administrators
Adrian Brindle, managing director and chief operating officer at Evolution, said, "We selected SunGard's FRONT ARENA because it not only provided comprehensive out-of-the-box functionality, but also because of its open, extensible framework. FRONT ARENA will be able to grow with us as we expand our business."
Rob Mackay, managing director, Americas, SunGard's FRONT ARENA business unit, said, "Evolution joins a growing number of hedge funds that are looking to SunGard and FRONT ARENA to provide a vendor partnership and technology platform that helps them streamline their operations, reduce operating risks, centralize and improve risk management, and grow their business."