By Yogendra Singh and Chris Spofford, Oracle
As cloud technology matures, financial institutions are migrating finance, treasury, and compliance functions away from on-premise systems. According to IDC, the worldwide financial applications market is forecast to reach $44.7 billion by 2025, with the cloud portion of that market growing by 13.9% through 2025. In addition, our global modernization of finance survey conducted with IDC revealed that more than half (54%) of finance executives indicated that financial planning and performance software are the most important tools necessary to build modern finance capabilities.
Oracle, a leader in integrated solutions across finance, treasury, and financial planning and analysis, has launched its Profitability and Balance Sheet Management Cloud Service suite. It includes multi-dimensional profitability management, profitability analytics, funds transfer pricing (FTP), asset liability management (ALM), balance sheet planning and optimization, and a stand-alone account-level cash flow engine service. These cloud-native SaaS services provide the necessary tools to assist financial institutions in measuring and meeting risk-adjusted performance objectives and price products to reflect their actual risk. They also help financial institutions better understand how their institutions are impacted by threats to changes in interest rates, liquidity, capital adequacy, and exposure to market rate volatility.
Benefit from the same comprehensive profitability and balance sheet management capabilities you use today, plus realize the advantages of running cloud-native, true SaaS services on Oracle’s highly secure cloud infrastructure. Moving your on-premise applications to the Cloud lowers your total cost of ownership, increases your agility, and improves your productivity.
Address profitability challenges in today’s dynamic business environment, with inherent volatility, rising interest rates, and changing customer behavior with Oracle’s Profitability Management Cloud Service. It provides robust and highly scalable cost allocation functionality and multi-dimensional profitability analytics and reporting to understand the true drivers of profit and risk in your portfolio.
Understand what drives enterprise performance and determine the spread earned on assets and liabilities by utilizing industry-leading transfer pricing methods with Oracle’s Funds Transfer Pricing Cloud Service. It accurately assesses profitability along the customer, product, channel, and business lines and centralizes interest rate risk for effective management.
Address increasing regulations requiring multiple techniques to measure exposure to liquidity and interest rate risk accurately. Oracle’s Asset Liability Management Cloud Service offers an accurate view of profitability, earnings stability, and overall balance sheet risk exposure. It provides an integrated framework for high-end ALM analytics, dynamic interactive dashboards, intuitive reporting, alerts, and scenario-based what-if analysis.
In recent years, the usage of cash flow projections has expanded across risk and balance sheet management teams—a trend largely attributed to evolving regulations and increased interaction among risk and finance functions. Oracle’s Cash Flow Engine Cloud Service is a stand-alone service that calculates daily cash flows using daily forecasted interest rates at the individual account level. This enables deeper analysis, supporting a variety of use cases, including liquidity, stress scenarios, and many others.
Current market dynamics make it even harder to forecast future performance accurately while assuming forward-looking risk. With Oracle’s Balance Sheet Planning and Optimization Cloud Service, financial institutions can gain a complete picture of balances and spreads, including a wealth of related cash flow information for each budgeting and reporting period, such as:
For over 30 years, Oracle has set the standard in the financial services industry for running integrated analytical applications across finance, risk, treasury, FP&A, and compliance. Our new Profitability and Balance Sheet Management Cloud Services suite can help financial institutions to achieve management excellence in delivering deeper business insights with a lower total cost of ownership. Oracle’s cloud-native SaaS architecture combines performance and balance sheet management applications into a single, seamlessly integrated framework.