Financial Services Profitability and Balance Sheet Management Cloud Services

Oracle Financial Services Profitability and Balance Sheet Management Cloud Services is a true SaaS solution that empowers banks with deep insights into profitability, interest margins, balance sheet trends, and interest rate risk. We help finance, treasury, and risk teams gain business insights while addressing complex and dynamic reporting and risk management requirements.

Video: Drive customer profitability using real-time analytics with Oracle’s profitability management solutions and Balance Sheet Management Cloud Solutions (1:20)

Why choose Oracle Financial Services Profitability and Balance Sheet Management Cloud Services?

  • Gain business value faster

    • Reduce the burden of technology upgrades.
    • Use advanced analytical capabilities for interactive reporting.
    • Share data and control between Oracle Financial Services Funds Transfer Pricing, Asset Liability Management, Balance Sheet Planning, and Profitability Management applications.
  • Identify silent drains on profitability

    • Understand profitability across all dimensions, including the individual customer level.
    • Conduct top-down and bottom-up analysis.
    • Access industry-leading funds transfer pricing (FTP) with all-inclusive cost-of-funds rates.
    • Identify break events and gain insight into economic loss.
  • Flexible forecast assumptions to accurately model your NII

    • Complete balance sheet and income statement modelling, expressed in an intuitive, visual structure
    • Capability to model any financial instrument in any currency down to the transaction level via a high-performance, scalable, standard cash flow engine
    • Ability to calculate market values, incomes, equity, and capital as well as liquidity levels, trends, and ratios in a variety of scenarios
    • Full income simulation with profitability via funds transfer pricing margin calculations
    • Income simulation with interest rate gap and liquidity in a single forecasting concept
  • Drive many efficiencies with one ecosystem

    • Use one data model.
    • Enjoy faster, simpler onboarding.
    • Reduce the time analysts spend collecting and compiling data by as much as 32%.
    • Perform what-if analysis.

Oracle Financial Services Profitability and Balance Sheet Management Cloud Services

Gain a risk-adjusted view of performance

Quickly assess the drivers of profitability through informative analytics and make necessary risk adjustments to optimize profit with Oracle Financial Services Profitability Management. Easily obtain a daily view of the costs of managing customer portfolios. Immediately respond to market realities and changing rates, and reduce the lead time required to perform profitability analysis.

Benefits

  • Accurately identify the most (and least) profitable customers, products, and lines of business.
  • Easily access key management reports for better performance tracking and profitability management.
  • Empower all business users with access to actionable profitability analytics and insights.
  • Track profitability trends and cost structures based on key dimensions.
  • Conduct scenario analysis at an aggregated level to gauge profitability variations.

Assign accurate cost of funds for base rates, liquidity, risk, and incentives

Determine the spread earned on assets and liabilities and the spread resulting from interest rate risk exposure for each customer relationship with Oracle Financial Services Funds Transfer Pricing. Accurately assess profitability along product, channel, and business lines, and centralize interest rate risk to manage it effectively.

Benefits

  • Use the same industry-leading transfer pricing methods, both in the current book and in your asset liability management and planning forecasts.
  • Leverage a shared data model that integrates risk, performance management, customer insights, and compliance.
  • Set transfer rates for a wide range of financial instruments.
  • Flexibly assign transfer rates to individual customer relationships.
  • Develop a deeper understanding of option and liquidity costs.

Award-winning asset liability management (ALM)

Gain an accurate view of profitability, earnings stability, and overall balance sheet risk sensitivity with Oracle Financial Services Asset Liability Management. Use advanced analytics, dynamic interactive dashboards, intuitive reporting, alerts and scenario-based what-if analysis.

Benefits

  • Use a high performance, scalable cash flow engine that handles multicurrency financial instruments.
  • Analyze and forecast interest rate risk through deterministic and stochastic simulation techniques.
  • Simulate income with profitability via funds transfer pricing net interest margin calculations.
  • Monitor liquidity gaps, funding concentrations, marketable assets, and liquidity ratios daily.

Take a granular view of cash flows

Measure and model loan, deposit, and off–balance sheet instruments with Oracle Financial Services Cash Flow Engine. Gain insight into the granularity of cash inflows and outflows for nonregulatory and regulatory purposes. Our solution is suitable for organizations with exposure to financial securities and instruments.

Benefits

  • Generate account-level cash flows using unique payment and repricing characteristics.
  • Use daily rate forecasting to provide a unique rate for a given day on repricing.
  • Improve insight into branch liquidity and cash on hand.
  • Optimize payables and receivables by focusing on customers with large exposure.
  • Leverage inbuilt validation rules to perform comprehensive quality checks on input data.

Develop accurate margin forecasts and meaningful budgets

Forecast future performance through a distributed planning process—incorporating scenario modeling of economic conditions and forward-looking risks—with Oracle Financial Services Balance Sheet Planning’s robust planning capabilities. Eliminate multiple disparate systems to produce a complete, reconciled plan that delivers better value and actionable insights.

Benefits

  • Leverage cash flow processing for current and new books of business.
  • Develop accurate and consistent business plans with a common cash flow engine that’s shared with Oracle’s ALM and FTP applications.
  • Use customizable forms and business rules for forecasting non–cash flow-based planning accounts.
  • Develop regulatory capital requirements and capital plans based on data from balance sheet planning.
  • Access integrated historical performance metrics, including net interest margins, risk-adjusted returns, spreads from transfer rates, allocated costs, and capital.

Explore profitability and balance sheet management cloud services resources

Customer story: Akbank

Oracle Financial Services Profitability Management supports Akbank in their daily pricing decisions and operational cost analysis to improve profitability.

Read Akbank’s story

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