To manage enterprise-level, risk-adjusted performance and threats to liquidity and capital adequacy
Oracle has unveiled a new integrated suite of financial services analytical applications for Enterprise Performance Management (EPM) based on the merged capabilities of Oracle Financial Services Applications (OFSA), Oracle’s Hyperion, PeopleSoft EPM, and Oracle Reveleus applications.
The company said that the applications are all built on the financial services data model and applications architecture as the Oracle Reveleus suite of enterprise risk management applications, allowing customers to add additional applications with only marginal incremental investments.
According to Oracle, the new Oracle Financial Services Analytical Applications for EPM includes, financial services profitability management, which 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.
It includes Oracle Financial Services Funds Transfer Pricing, which enables banks to determine the account level spread earned on assets and liabilities, and the spread earned as a result of interest rate exposure; and Financial Services Asset Liability Management that allows financial services institutions to manage and monitor interest rate risk, liquidity risk, foreign currency risk and earnings risk, the company said.
The new offering also includes Oracle Financial Services Pricing Management, Transfer Pricing component, which 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 includes elements of profit and loss for an account.
Don Russo, senior vice president of Oracle Financial Services Global Business Unit, said: “The Oracle Financial Services analytical applications EPM suite enables institutions to break down the organisational silos that exist today between the risk and finance functions in order to help maximise profitability and achieve management excellence.”