- Revision History
- Overview
- Feature Summary
- Profitability and Balance Sheet Management
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- Asset Liability Management
- Profitability Management
- Funds Transfer Pricing
- Cash Flow Engine
- Profitability Analytics
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- Revamp of Financial Element to Line Item Mapping UI
- Customer Profitability Report
- New Reports in other Canvases
- Additional Subject Areas on Instrument Tables
- Data model Support for Customer Dimension
- New User Interface for Defining Segments
- Support for Multiple Levels for Income Statement and Balance Sheet Hierarchy
- Addition of Canvas for Balance Sheet
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This document will continue to evolve as existing sections change and new information is added. All updates appear in the following table:
| Date | Module | Feature | Notes |
|---|---|---|---|
| 25 MAY 2023 | Profitability Analytics | Updated document. Delivered new features in 23.3.1. | |
| 21 APR 2023 | Cash Flow Engine | Updated document. Delivered new features in 23.3.1. | |
| 18 APR 2023 | Funds Transfer Pricing | Updated document. Delivered new features in 23.3.1. | |
| 18 APR 2023 | Profitability Management | Updated document. Delivered new features in 23.3.1. | |
| 31 MAR 2023 | Created initial document. |
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Column Definitions:
Report = New or modified, Oracle-delivered, ready to run reports.
UI or Process-Based: Small Scale = These UI or process-based features are typically comprised of minor field, validation, or program changes. Therefore, the potential impact to users is minimal.
UI or Process-Based: Larger Scale* = These UI or process-based features have more complex designs. Therefore, the potential impact to users is higher.
Features Delivered Disabled = Action is needed BEFORE these features can be used by END USERS. These features are delivered disabled and you choose if and when to enable them. For example, a) new or expanded BI subject areas need to first be incorporated into reports, b) Integration is required to utilize new web services, or c) features must be assigned to user roles before they can be accessed.
| Ready for Use by End Users Reports plus Small Scale UI or Process-Based new features will have minimal user impact after an update. Therefore, customer acceptance testing should focus on the Larger Scale UI or Process-Based* new features. |
Customer Must Take Action before Use by End Users Not disruptive as action is required to make these features ready to use. As you selectively choose to leverage, you set your test and roll out timing. |
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|---|---|---|---|---|---|---|
| Feature |
Report |
UI or |
UI or |
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Prepayment Rule Availability for Cash Flow Calculation in Transfer Pricing Standard Process |
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Support for Multiple Levels for Income Statement and Balance Sheet Hierarchy |
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Profitability and Balance Sheet Management
The refined Cash Flow Edits UI provides for viewing seeded out-of-the-box rules, creating new rules per business requirements, and editing user-defined rules.
Modified records can now be identified after Cash Flow Edits process get executed. New and improved cash flow edit checks, management of rules are the other enhancements.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
The Cashflow engine is powered with the ability to capture and independently model Interest and Principal Cashflows. This improves accuracy and is handy when events move around due to holiday.
Other important improvements are related patterns and usage of accrued interest. Accrued Interest available from the source system can be used for all instruments; currently, they are applied to limited cases. Treatment of multiple reprice instruments and holiday calendars have been streamlined.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
Data Visualization and Reporting
ALMCS is integrated with Data visualization (DV) which makes it quick and easy to create charts and graphs that can be added to a customizable dashboard.
The enhanced DV can directly access reporting results post-processing without the need for additional data transformation. With DV, you can handle a high volume of data and process information faster to boost productivity and results.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
Daily rate lookups that accelerate the prediction of more accurate Forecasted Rates has been introduced.
This will be used to forecast future cash flows including pricing new business, re-pricing existing business, calculating prepayments, and determining discount methods. The UI sports standardized shocks, which are seeded out-of-the-box, and support IRRBB run in accordance with the regulatory framework.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
Interest Rate Curves User Interface
The new Interest Rate Curve User Interface has been enhanced with the ability to construct curves for specific date tenors and tenor level attributes. In addition to specifying a term/multiplier, you can also specify tenors-as-dates along with term/multiplier labels for reporting purposes.
Showing both Actual Dates and Rates as labels in a single screen enhances data visualization, which makes for a more vibrant, customer-centric readable format.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
The Market Valuation functionality is richer with the provision of instrument level spread in the discount rule section; usage of the specific spread in MV computation is now supported. Additionally, user-based input price can be inserted into the system to calculate the spread at the instrument level.
Scenario-dependent price can be derived through UI input, which is the base price. ALMCS solves the base scenario spread. The same spread is then applied to all subsequent scenarios to derive a scenario-dependent price, even when the base spread is given. ALMCS can then solve for the base and all other scenario prices with the provided spread.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
Pattern Usage and Content Improvement
The refreshed Pattern UI is designed to extensively support Behavior, Repricing, and Payment Patterns by providing simple access and menu-driven options.
It supports an unrestricted number of pattern creations. You can also run the functional enhancements in an ALMCS simulation.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
The enhanced design language with best-in-class graphical representation lets you visualize data in new ways enabled by state-of-the-art, machine-learning technology.
This feature-rich design lets you see how your business operates and receives recommendations, provides guidance that continually improves based on your preferences, has enhanced user experience, and provides accessibility across multiple devices.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
Static Deterministic Processing
Highly simplified process definition screens that includes Income simulation, Interest rate and liquidity gap calculation elements (IS/IR/LR).
Additionally users can now define the outputs with up to 10 aggregation dimensions. The enhanced UI design streamlines and simplifies ability to set up and manage operations.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
In the new Time Bucket definition, the standard IS/LR/IR is enhanced with the computation of Dynamic dates which is useful in determining Forecasted Forward Rates for LR and IR computations.
The other enhancements include: (1) Support for unlimited Time buckets and (2) the introduction of stubbing functionality to help address the user preference that can be leveraged to Month/Year Ends in the Time Bucket module. The availability of export/import facility also provides for easy data movement.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
An Expression is a user-defined PBSMCS tool that enables to manipulate data flexibly, typically used in PFT - in the Source/Driver tabs of an allocation rule or as a return type from a Lookup table driver.
A PBSMCS Expression is a well-formed finite combination of columns, operations, functions, constants brackets, punctuation and grouping to help determine order of operations and other aspects of logical syntax.
A PBSMCS Expression is used to specify a calculated column derived over other columns in the database. An Expression can be used to create calculations like average daily balances, current net book balance, average current net book balance, weighted average current net rate and similar other calculations.
Steps to Enable
You don't need to do anything to enable this feature.
The Designer View and Data View together enable you to maintain or modify the table data by using the Forms Definition that is created and approved. The user has also been given the option to download the selected set of rows to the object store.
The Data Management interface helps the user to manage data in terms of editing/updating a few attributes for a selected set of rows, uploading data using Excel, and downloading data to the object store.
Steps to Enable
You don't need to do anything to enable this feature.
A scalable rule-based framework that allows the user to ensure the quality of input data in terms of account attributes, and predefined dimension values. Users can perform Null, range, or various types of checks on input data and assign appropriate values; in case any data issue is encountered.
Facilitates you to define data quality rules and execute them to query, validate, and transform incorrect data in an Information Domain.
Steps to Enable
You don't need to do anything to enable this feature.
A Circular Allocation Model includes two lists of allocation rules - a list of “circular” rules and a list of “sweep” rules. The list of circular rules executes first; generally, the circular list runs multiple times. Each rule within the circular list of rules runs sequentially. After the circular list has run one or more times, each of the sweep rules also runs sequentially, but the list of sweep rules only runs once.
The primary purpose of the Circular Allocation Model is to process allocation scenarios in which the allocation rules can source data resulting from previous allocations, and that can send data back to Sources that had previously been eliminated. One common example of this kind of situation occurs in a center-to-center type of allocation rule that involves providers of shared services.
Steps to Enable
You don't need to do anything to enable this feature.
You can either output Transfer Pricing Results to the seeded or placeholder alternate columns; selected using the Alternate Rate Output Mapping Rule. A placeholder column can be enabled and a particular UDP can be assigned via data model extension; so that it becomes available for alternate rate output mapping.
The Standard Transfer Pricing Process references the Alternate Rate Output Mapping Rule to Output Transfer Rate, and Add-On Rate Calculation Results for each Instrument Record. This plays a very critical role when you would like to compare transfer pricing results for multiple methods/configurations. For each method, results can be stored in a separate alternate rate column and can be compared later.
Steps to Enable
You don't need to do anything to enable this feature.
A scalable rule-based framework that allows users to ensure the quality of input data in terms of account attributes, and predefined dimension values. Users can perform Null, range, or various types of checks on input data and assign appropriate values; in case any data issue is encountered.
Facilitates you to define data quality rules and execute them to query, validate, and transform incorrect data in an Information Domain.
Steps to Enable
You don't need to do anything to enable this feature.
Dependency Check and Audit Trail
This feature helps to identify the parent and child dependencies on a selected object.
The Audit Trail section displays the metadata (User who created the object, when the object was last edited etc.) about the object with the option to add additional information as comments.
While deleting a particular object, this feature displays all the dependencies in terms of the concerned object being referred in another child object OR it referring to another parent object, you can only delete an object if all its dependencies are removed.
The User Comments/Audit section facilitates you to add or update additional information as comments OR to verify when/who created or edited the object.
Steps to Enable
You don't need to do anything to enable this feature.
Prepayment Rule Availability for Cash Flow Calculation in Transfer Pricing Standard Process
A Prepayment Rule contains methodologies to model the prepayment behavior of various amortizing instruments and quantify the associated prepayment risk.
Prepayment Rules allow you to specify methodologies to model the loan prepayment, deposit early redemption behavior of products in your portfolio, and quantify the associated prepayment risk in monetary terms.
Steps to Enable
You don't need to do anything to enable this feature.
The Prepayment Model method allows you to define more complex prepayment assumptions compared to the other prepayment methods. Under this method, prepayment assumptions are assigned using a custom Prepayment model.
Prepayment Models can be referenced by a Prepayment Rule to Model the Prepayment Behavior of Instruments based on a range of instrument-level attributes.
Steps to Enable
You don't need to do anything to enable this feature.
The Designer View and Data View together enable you to maintain or modify the table data by using the Forms Definition that is created and approved. The user has also been given the option to download the selected set of rows to the object store.
The Data Management interface helps the user to manage data in terms of editing/updating a few attributes for a selected set of rows, uploading data using Excel, and downloading data to the object store.
Steps to Enable
You don't need to do anything to enable this feature.
Upgraded Process UIs with Redwood Experience
Cash Flow Process and Cash Flow Edits Process user interface have been upgraded to use Redwood components
This feature-rich design lets you see how your business operates and receives recommendations, provides guidance that continually improves based on your preferences, has enhanced user experience, and provides accessibility across multiple devices.
Steps to Enable
You don't need to do anything to enable this feature.
Key Resources
Reports on dimension, hierarchies and currency exchange rates have been added.
This improves the data visibility.
Steps to Enable
Map BI roles to user group.
Key Resources
A set of Rules and Groups that allow you to define data checks and correct any issues by assigning proper values.
Facilitates you to define data quality rules and execute them to query, validate, and transform incorrect data in an Information Domain.
Steps to Enable
A scalable rule-based framework which allows user to ensure the quality of input data in terms of account attributes, predefined dimension values. Users can perform Null, range, or various types of checks on input data and assign appropriate value; in case any data issue is encountered. Facilitates you to define data quality rules and execute them to query, validate, and transform incorrect data in an Information Domain.
Key Resources
This module helps you to Reconcile the selected processing/instrument/account balances against the Management Ledger. If any differences are found, you will have the flexibility to choose significant differences and create plug entries for those in the Ledger_Instruments table.
This helps you to define the dummy attributes for the Product-Currency combinations, whichever General Ledger Account is used for Reconciliation. Default dummy attributes are auto populated based on the linked product ID and currency selected in Reconciliation dimensions.
Steps to Enable
Map reconciliation roles to user group.
Key Resources
Revamp of Financial Element to Line Item Mapping UI
The interface seeds the corresponding portfolio column for all the financial elements in the income statement hierarchy seeded within Profitability Analytics.
The UI not only helps to map a particular financial element and the portfolio column name, but also to define it more precisely leveraging the balance sheet type category and the signage of the instrument column for that particular financial element to tweak the existing values available for selection.
The greatest benefit of this revised UI is that in addition to direct mapping, there is the capability to further filter down information like the list of codes from dimension management, or anything else that can be related to all the instrument columns. This can be used in conjunction with the Evaluation Expression. The user can assign an evaluation expression out of instrument column such as annual fees, plus any other fee for this particular financial element.
Steps to Enable
You don't need to do anything to enable this feature.
The customer profitability reports are developed out of instrument tables as part of bottom-up reporting. There are 3 canvases that are developed as part of this report. They are Customer Details – which provides information about the entire customer relationship with the bank, Customer v Segment, and Segment Comparator. This report is applicable both in a wholesale context for customers as well as for Retail. In a retail context, it will typically be HNI or high-net-worth individuals who are critical for bank profitability.
The business benefit of these dashboards is that it provides the bank insight into its customer base and helps design tailored offerings for key customers and segments such that they can enhance value to the banks and banks can devise specific upgrade and retention strategies.
Steps to Enable
You don't need to do anything to enable this feature.
Reporting around Total Revenues, Cross Sell, Relationship Depth, and account distribution have been added to relevant canvases both for top-down as well as Bottom Up reporting.
All the new reports are relevant in providing a comprehensive profitability BI solution on the cloud with strategic insights around Customer and Product.
Steps to Enable
You don't need to do anything to enable this feature.
Tips And Considerations
All the new reports are relevant in providing a comprehensive profitability BI solution on the cloud with strategic insights around Customer and Product.
Additional Subject Areas on Instrument Tables
With this enhancement, Profitability Analytics now has the following subject areas:
- Management Reporting
- Profitability Insights
- Income Statement
- Instrument Segmentation
The addition of the new subject areas not only enhances the visibility of the RPD elements to the user for ad-hoc reporting, it also greatly improves the performance of the reporting and Turnaround times for reports to load.
Steps to Enable
You don't need to do anything to enable this feature.
Data model Support for Customer Dimension
A new table to support details around customers including customer group structure has been introduced.
These additional customer attributes are important dimensions in the base set of features upon which the customer segmentation schemes are defined. This table can be further extended in the future, based on customer requirements.
Steps to Enable
You don't need to do anything to enable this feature.
New User Interface for Defining Segments
Users can select from a set of dimensions to create segments for different Segment types as part of the Profitability Analytics UI. This segmentation can be done for both Retail and Wholesale customers and accounts.
Customer Insight can be looked at from two angles – by looking at the customer and their accounts individually or by looking at customer/ account segments. This capability allows comparing a customer with the corresponding segment to achieve easier upsell and cross-sell of products and customer upgrades to enhance value to bank.
Steps to Enable
You don't need to do anything to enable this feature.
Support for Multiple Levels for Income Statement and Balance Sheet Hierarchy
Profitability Analytics has seeded Income Statement and Balance sheet which are very detailed. The level identifier provides the user with an option to create curated views of these financial statements.
Different users of the bank can create their own view of the Balance sheet and Income statement with the line items that they view very closely. This prevents the user from being overwhelmed with details of financial statements that they are not really interested in viewing.
Steps to Enable
You don't need to do anything to enable this feature.
Addition of Canvas for Balance Sheet
The addition of the Balance sheet completes the view of the data that is coming from the Management Ledger, essentially a top-down version of performance reporting within Banks and Financial Services firms.
This analytical view of the balance sheet helps banks gain a view of current and non-current assets and liabilities. There is also information about the capital holdings of the bank and trends across various time points. While this view may not conform to the regulatory view, it still helps the top executives of the bank to have a clear assessment of the financial standing and health in conjunction with the already available Income Statement reports.
Steps to Enable
You don't need to do anything to enable this feature.