Oracle Helps Financial Institutions Manage Balance Sheet Risk and Fuel Growth in New Treasury and Finance Solutions

Solutions enable banks with deep insights and complex reporting on profitability, interest rate risk, and balance sheet trends

Helping financial institutions boost profitability, grow revenue, and manage balance sheet risk, Oracle announced Oracle Financial Services Profitability and Balance Sheet Management Cloud Services. With Asset Liability Management, Cash Flow Engine, Funds Transfer Pricing, and Profitability Management applications, the new suite of SaaS solutions provides banks deep insights into profitability, interest margins, interest rate risk, and balance sheet trends to make critical business decisions faster, while meeting complex risk management reporting requirements. The services are now available globally.

“Oracle has set the standard in the financial services industry for running integrated analytical applications across finance, risk, treasury, financial planning and analysis, and compliance,” said Sonny Singh, executive vice president and general manager, Oracle Financial Services. “With these cloud-native services for profitability and balance sheet management, we are empowering financial institutions to optimize operations, and drive more sustainable growth by using advanced analytics and integrated AI to gain critical insights, such as drain on profitability, or a risk-adjusted view of performance to immediately adjust to market realities.”

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The suite of solutions provides a framework for multi-dimensional profitability and balance sheet management by helping financial institutions better understand profitability across business dimensions, use flexible forecast assumptions to accurately model Net Interest Income (NII), and address risk management requirements. The applications leverage the integration of Generative AI and Natural Language Generation (NLG) to enhance data interpretation by automatically generating detailed insights.

Built on the high performance, security, and scalability of Oracle Cloud Infrastructure, the services use Oracle Autonomous Database, Oracle Analytics, and a domain-driven microservices architecture. With quarterly updates, banks can eliminate the need for costly upgrades while benefiting from continuous innovation that helps improve total-cost-of-ownership.

Oracle Profitability and Balance Sheet Management Cloud Services include:

• Profitability management: provides a highly scalable allocation engine that allows users to construct detailed P&L analysis using pre-packaged reports and data visualizations to model profitability across multiple dimensions, including product, customer, account, channel, business unit, geography, relationship manager, and line of business. With the solution, organizations can answer questions such as, “Which customers are the most profitable?” or “What products or services should we invest in or divest?”
• Funds transfer pricing: determines the spread earned on assets and liabilities, and allows for more accurate profitability assessment and effective interest rate risk management.
• Asset liability management: delivers accurate valuations, views of earnings stability, and balance sheet risk sensitivity through advanced analytics and scenario-based what-if analysis.
• Cash flow engine: measures and models cash inflows and outflows for financial instruments, and provides detailed insights into liquidity and cash management.

“Financial institutions are under constant pressure to improve efficiency and reduce costs, and Oracle’s new cloud services directly address the challenges around automating complex tasks, reporting, and developing analytics and visualization,” said Sid Dash, chief researcher, Chartis. “Moreover, the ability to analyze profitability and balance sheet risk in real-time, with the granularity that Oracle offers, will be crucial for institutions to thrive.”

These services are part of the Oracle Financial Services Suite of componentized and composable cloud applications. Built on a platform and AI-first microservices architecture, these services help banks modernize their business capabilities faster and with less risk. The services can run standalone or work together and coexist with existing applications to provide faster provisioning and availability. They also feature automated patching and shorten disaster recovery switchover times that can help lower IT costs and reduce management burdens.

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