Aite Group â a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry â announced the award in its December 2006 report titled, âProfitability Analytics: Growing in Adversity.â The report profiled and compared providers of profitability analytics tools that help senior bank managers make better strategic decisions to increase profitability in the face of shrinking margins, declines in deposits and rising costs.
The Aite Group report concluded that profitability solutions are increasing in acceptance across all banking tiers, and that investment in these tools is expected to increase by 10% year over year through 2010. Explained Randi Purchia, senior analyst at Aite Group and author of the report, âWhat drives this business is anxiety about interest rates and rising costs, as well as positive proof of the ROI from these applications.â However, âmany banks still struggle to find sufficient resources and champions to integrate their value deep into the organization - to the front lines, across lines of business, into customer management processes, and to strategic planning groups and boardrooms where its output could have the greatest impact.â
The multi-dimensionality of SunGardâs BancWare Profitability is designed to help reduce these internal hurdles. Users value the solutionâs capability to calculate profitability at the account level, drill through every level of the hierarchy, and aggregate analysis and reporting to help improve accuracy and support better decision-making throughout the banking organization. Bill Collette, vice president of profitability solutions for SunGardâs BancWare business unit, said, âSuccessful financial institutions today are able to effectively identify those products, customers, branches, and other factors that impact overall profitability. Our customers see the benefit in analyzing their business across unlimited dimensions to view the complete P&L picture.â
Terence Faherty, president of SunGardâs BancWare business unit, added, âWe are encouraged by Aite Groupâs emphasis on profitability analytics â which is critical for banks that wish to remain competitive â and honored by its recognition of BancWare Profitability as a solution that can help financial institutions measure and optimize their performance.â