ABN AMRO North America uses BancWare at its Chicago headquarters to manage risk on approximately $90 billion in retail and commercial banking assets. It has been using BancWare Convergence for interest rate risk management since 1993 and added advanced analytics including option-adjusted valuation (OAV) and prepayment modeling to the solution in early 2000.
ABN AMRO has now elected to use BancWare Insight for funds transfer pricing and data management. BancWare Insight will collect, clean and synthesize transaction level data from various business lines and then feed that data into BancWare Convergence for asset liability management. Using BancWare's flexible transfer pricing methodologies, ABN AMRO will be able to separate interest rate volatility from product decisions, allowing financial managers to effectively price products, perform asset allocation and make compensation decisions for maximum profitability and value.
David Ide, senior vice president at ABN AMRO, said, "One integrated platform for ALM and funds transfer pricing ensures data consistency across departments, enabling each to make informed strategic business decisions with confidence. BancWare enables us to have centralized control within the finance area over the entire process, thus greatly helping to streamline our operation. Our success with BancWare for interest rate risk management and our long relationship with SunGard have proved that we can trust in the dependability of its solutions and support team."
Terence Faherty, president of SunGard's BancWare operating unit, said, "We partner with our clients to provide solutions that meet their business needs, allowing more time to be spent on decision making and less time focused on integration. This enables our clients to focus on strategic decisions such as pricing and risk management, thereby increasing margins and profitability."