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Regulatory Reform Drives Global Banking Investment In Advanced Risk Management Technology

email this aricle - Regulatory Reform Drives Global Banking Investment In Advanced Risk Management Technology  - Geneva - 14 September 2011 print this article - Regulatory Reform Drives Global Banking Investment In Advanced Risk Management Technology  - Geneva - 14 September 2011
Temenos (SIX:TEMN), the market leading provider of banking software, today announced that more than 25 banks across Europe, Asia, Africa, the Middle East and the Americas have contracted to implement Insight Risk Intelligence, Temenos’ new risk offering, since its launch in May this year. This rapid take up shows the growing importance of strong risk management among banks globally to enable efficient capital allocation and compliance with regulatory requirements like Basel III. Insight Risk Intelligence is designed to equip banks with the advanced tools required to effectively support Basel II and III, Asset and Liability Management (ALM) and market risk management.

One bank in Asia that has implemented Insight Risk Intelligence functionality is Techcombank, the third largest private commercial bank in Vietnam, which deployed the suite’s market analytics module to support the bank’s market risk management and treasury portfolio requirements. A long standing T24 user, Techcombank recognized the value of investing in additional banking solutions to drive innovation and has increased its use of Temenos software since 2003 to take advantage of new offerings like Insight Risk Intelligence.

“With this new module, we have extensive analytical capability via a wider range of tools including a VaR (value at risk) engine, yield curve modeling and pricing tools. Its powerful reporting engine enables us to navigate data to the lowest level of granularity which has significantly improved our reporting capability. We now have global standard calculation models in place for the first time and we can enjoy greater visibility of underlying portfolio risk, effectively manage market risk and allocate our capital to the most rewarding activities. As the module is directly interfaced with TEMENOS T24 (T24), this has substantially improved data integrity and our level of confidence in reports that we produce”, commented Mr Minh, Director, Center for IT Project Management, Business Analysis and Consultancy - IT Division, Techcombank.

In the Middle East, Silkbank, a leading corporate bank in Pakistan is implementing the suite’s regulatory capital and market analytics modules. Temenos’ local integration partner NDCTech is implementing the software. As an easy to deploy, out of the box solution, Temenos partners will play a central role in supporting implementations of Insight Risk Intelligence in line with the company’s strategy to maintain a robust partner eco system that underpins its global delivery model.

Javed Yousuf Edhi, CIO, Silkbank commented: “To comply with the Pakistan Basel II central bank returns, we have to automate our reporting processes. In the face of tougher regulation, no one is going to be able to effectively comply under a manual reporting framework, which is high risk and low efficiency. With Temenos’ regulatory capital module, we will have out of the box reports which fully support all Basel II reporting requirements. We will have a raft of advanced credit, market and operational risk management capabilities to analyse exposures and accurately calculate regulatory capital to meet full Basel II compliance, as well as assist us in the journey to Basel III compliance”.

Other banks that have chosen Insight Risk Intelligence as their risk management platform of choice include USB Bank in Cyprus, CAL Bank in Ghana, Military Bank in Vietnam and Banco Fichosa in Honduras.

Shawn Doumy, Product Director, Insight Risk Intelligence, Temenos, concludes: “Recent Temenos research among 190 banking executives revealed that regulatory reporting is the top risk related priority for banks globally. The second risk priority particularly for tier 1 and 2 retail banks is to implement an enterprise-wide risk management solution.* These results support our view that with competition intensifying, data volumes exploding and risk management moving to the forefront, developing a robust capability to manage information is no longer a nice-to-have. The strong take up of Insight Risk Intelligence not only shows that banks across the world share this priority, but that our solution meets the global demand for a functionally rich and fully integrated risk management toolkit”.

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