FERNBACH, the Luxembourg-based vendor specialising in developing systems for regulatory reporting and compliance as well as for financial controlling and economic bank management, was presented with the ICT Innovation Award for its FlexFinance® IFRS solution on Friday 19th November at the annual Banking & Finance Gala Dinner.

According to Michel Klompmaker, President of the Banking & Finance Organisation Committee, "The main selection criteria in the evaluation process were customer satisfaction, generation of competitive advantages, quality and methodology as well as timeliness and relevance to market requirements."

The five-member decision making jury included Willem de Bock, Alain Deladrière, Prof. Dr. Paul Iske, Prof. Dr. Silvain Loccufier, and Richard Neve. Willem de Bock goes on to explain the reasons behind the decision in favour of the FlexFinance® IFRS solution from FERNBACH, "Until now, the implementation of the International Financial Reporting Standards (IFRS) has been purely seen as a negative return on investment for banks. Due to the innovation and vision applied to the approach FERNBACH took in developing the FlexFinance® IFRS solution, the cost is not only reduced but has the potential to have a positive impact on the performance of the bank.

A visit to one of the reference customers, Nord/LB, showed that a project of this type cannot only lead to increased flexibility with regard to the integration of new or existing systems, personnel deployment and IT infrastructure, but also the creation of a common unified platform of data for decision making. The solution architecture, quality of software and services all helped to minimise the overheads and risks associated with the project. Last, but not least, the synergies between IFRS, Basel II and Asset and Liability Management (ALM) mean that solid foundations are now in place to bring real added-value to the bank.

The feedback we received in the award questionnaire reinforced the view from the customer that even fulfilment of a regulatory requirement can create a lasting competitive advantage if an innovative and effective solution is selected."

Günther Fernbach, CEO of FERNBACH, comments, "We are absolutely delighted to receive this award from an independent body and thank the jury for their foresight. The decision confirms that employee competency and expertise are more important than size of company when it comes to the innovation and performance of a solution as well as the success and security of a project. We hope this award will help us continue to reinforce our position as a market leader in this area. Our major thanks must go to Nord/LB for their decision to opt for our solution and their faith in our company."

According to Alan Goodrich, Director of International Sales at FERNBACH, "Other takers of the FlexFinance® IFRS solution across Europe include: Crédit Agricole Landbouwkrediet in Belgium, DekaBank in Luxembourg, and SachsenLB in Germany. In addition, our solutions are also currently being considered by major banks in the UK, Belgium, Netherlands, Germany, Switzerland, Portugal and the Middle East.

Meeting the requirements of IAS/IFRS is a challenge that should not be underestimated and it is important to have the strongest partner possible. The advantages of FlexFinance® are many. For the technology-minded, the solution offers a J2EE-compliant system architecture, combined with proven performance and scalability resulting from our partnership with ORACLE, and a modern browser-based GUI. From a business perspective, FERNBACH guarantees IFRS-compliance with regard to IAS32 and IAS39 (both IASB and EU versions) with our specifications being validated by companies such as Deloitte & Touche.

Integration effort to operational systems is minimised through standard import threads for deal, market and counterparty data, while standard adapters to general ledgers, such as ORACLE Financials, also save time and ensure reconciliation issues are limited. Hedge building, documentation, effectiveness testing and accounting is integrated into the solution, as is IFRS reporting, not only for the Balance Sheet and P/L Statement, but also Equity Statement, Segment Reports, Cash Flow Statement and the Notes & Disclosures.

In fact, the FlexFinance® IFRS solution is also component-based, therefore we can provide not only the full platform but also specific niche requirements where needed."

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development