FinArch, the leading international provider of Finance Resource Planning (FRP) for the finance industry, today announced that one of the largest retail and investment banks in the world has signed an agreement with FinArch to fully address the pending FSA Liquidity Risk Calculation and Reporting regime. The fully functional solution is being implemented ahead of the FSA’s published timelines to ensure the bank is fully compliant with a tried and tested approach.
In Financial Studio, FinArch’s Liquidity Risk Calculation module offers Gap Analysis, Ratio Monitoring, Flexible Stress Testing, a Fair Value Engine, and a comprehensive Cash Flow Engine. The unique integration of these calculators with the Financial Studio Compliance Module then ensures the generation of a complete set of regulatory reports.
FinArch’s Financial Studio Liquidity Risk Calculation and Reporting Framework enables banks and financial institutions to meet the new regulatory demands for more and better control of Liquidity, while gaining additional business benefits by improving reporting flows, improving return on IT investment, and turning compliance into a cost-saving exercise.
The Framework is fully modular allowing banks to use their own calculated cash flows, for example, or using the powerful Financial Studio Cash Flow engine to produce the complex contractual or expected cash flows. Similarly, where an institution has in place all the required calculations and stress testing functions the Framework will operate as a reporting layer to remove the resource heavy manual task of submission.
One of the key reasons the bank chose Financial Studio is the incredible flexibility the product offers, efficiently empowering the users to take full control of their liquidity management process. This flexibility combined with the powerful calculation engines, the complete automation of data take on and report production, the solution offers the bank immediate return on investment compared with other alternatives available. In conjunction with the experience and professionalism of the FinArch team the proposition offered by Financial Architects was very compelling. In addition, the modular nature of FinArch’s solution allows all of the functional components to be re-used in other contexts, delivery hugely powerful re-usability and downstream economies of scale.
Nancy Masschelein, head of Risk and Capital Management, comments: “We at FinArch strive to help bankers and banks worldwide to better manage their risk and to comply with risk regulations. Therefore, the purpose of our integrated solution for liquidity risk calculations and stress testing analysis is to offer managers an extremely high level of comfort regarding liquidity forecasts and to provide strategic guidance for contingency funding decisions. The flexible liquidity risk calculator and simulation engine are banks to simulate the impact of any idiosyncratic or systematic stress test of any nature, magnitude and duration on the liquidity risk profile and adequacy of liquidity risk buffers.”
Nigel Lee, cco at FinArch, comments: "This agreement with this new customer cements our position as the clear leader in the space of risk and financial management software. After a heavy evaluation process, including a Proof of Concept and performance benchmarking we emerged as substantially more capable than all of our competitors. To be selected by the one of the largest global financial institutions speaks volumes about both our solutions and the people who deliver and support them. In today’s times of financial turbulence, we are happy to see a substantially increased interest in our solution and our integrated FRP concept from such tier one global banks. We at FinArch are obviously very happy to provide our customers with the ability to capitalize on our FRP vision, as they can leverage an immediate return on their investment thanks to the implementation of one platform only for their entire risk and financial management software.”
