Al Rajhi Bank integrates risk and finance with Oracle Cloud
World's largest Islamic bank by capital unifies treasury, risk, and finance, and elevates reporting with Oracle Modern Risk and Finance solutions.
“We’ve aligned treasury, risk, and finance with Oracle’s Modern Risk and Finance solutions. Everyone is speaking the same language and we’ve strengthened reporting agility and accuracy across the bank―all while reducing the need for human intervention.”
Business challenges
Al Rajhi Bank, based in Saudi Arabia, is the world’s largest Islamic bank by capital. While the bank was focused on further growth, continually changing business and regulatory reporting requirements were placing a strain on internal resources. Al Rajhi relied on manual and partially automated systems to create reports, which was a time-consuming process. It also wanted to modernize and integrate its data and systems across its risk, treasury, and finance departments to become more agile and efficient.
Why Al Rajhi Bank chose Oracle
Selecting Oracle Risk and Finance Solutions was a logical choice for Al Rajhi Bank. The applications lead the market in terms of breadth of integrated solutions and depth of functionality. Also, Oracle gives the bank a single source of data for risk and finance―critical to enabling the bank to improve data quality and reduce IT complexity. In addition, the bank relies on Oracle E-Business Suite applications for finance, human resources, and supply chain management. It looked to build on synergies across the Oracle ecosystem.
Results
Al Rajhi bank has aligned data and insights across treasury, risk, and finance to enable deep and actionable business insights using Oracle Risk and Finance Solutions. The bank now has one repository for all enterprise performance management and enterprise risk management applications.
Al Rajhi cut days from reconciliation and reporting processes through a combination of Oracle’s common data platform and automation enabled by the risk and finance applications. Today, the bank successfully delivers more accurate and rapid financial and risk reporting to management across the enterprise.
Using Oracle, the bank automated granular reporting for regulatory submissions, allowing it to meet the Central Bank’s requirements within defined timelines and strengthen relationships with regulators.
Al Rajhi Bank is also using Oracle Financial Services Enterprise Risk Management and Oracle Financial Services Regulatory and Accounting solutions, which ensure the bank complies with broader industry requirements, such as the IFRS9 and Basel III.
In addition, the bank is driving new levels of precision to its profit, budget, forecast, and strategy planning processes with Oracle Financial Services Balance Sheet Management. The bank can now offer risk-adjusted pricing to customers versus yield-based pricing, strengthening its financial and risk posture.
Al Rajhi Bank uses Oracle’s risk and finance platform for financial institutions across multiple business units. Its finance team leverages Oracle Financial Services Funds Transfer Pricing and Oracle Financial Services Profitability Management for calculations. For Basel, the risk team uses Oracle Financial Services Liquidity Risk Management and IFRS 9 calculations. And the ALCO team taps the complete Oracle Financial Services Asset Liability Management solution to provide a single view of cash flow for the bank, while the analytics group uses the reconciled data and output for advanced insight on profitability.