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Oracle Financial Services Funds Transfer Pricing

Oracle Financial Services Funds Transfer Pricing is the industry's first matched maturity funds transfer pricing application, which lets financial institutions determine the spread earned on assets and liabilities, and the spread earned as a result of interest rate exposure for each customer relationship. This enables accurate assessment of profitability along product, channel, and business lines, as well as the centralization of interest rate risk, so that risk can be effectively managed.

Integrate Risk and Performance Management for Better Results
Oracle Financial Services Funds Transfer Pricing is a next-generation solution that is fully integrated with Oracle's Financial Services analytical applications and shares a common account-level relational data model.

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BENEFITS

Separate the components of net interest income
- Rate risk to your funding center where it can be centrally managed
- Hold business units accountable for what they can control
- Measure and manage these components separately to locate tremendous profit opportunities
Flexibly assign transfer rates to individual customer relationships
- Choose from 12 possible methodologies
- Incorporate contractual instrument characteristics
- Use user-driven yield curves
- Customize prepayment expectations and incorporate into the transfer rate
Develop a deeper understanding of option and liquidity costs
- Track the cost of embedded optionality
- Quantify option costs using sophisticated stochastic techniques
- Incorporate state-of-the-art term structure and smoothing methodologies