Fiserv IPS-Sendero KRM Dynamic Processing Solution Wins Credit Technology Innovation Award

16 December 2008

Fiserv IPS-Sendero, a business unit of Fiserv, Inc. (NASDAQ: FISV), a leading provider of information technology services to the financial industry, and a provider of risk and value management solutions to financial institutions worldwide, has been recognized as a pioneer in the credit risk space by winning one of Credit magazine’s inaugural technology innovation awards for 2008. Fiserv IPS-Sendero’s KRM dynamic processing solution was selected because it has fundamentally enhanced the way financial institutions develop asset/liability management and risk management frameworks in the current environment.

The Credit Technology Innovation Award, announced in November, highlights solutions that provide front-line market participants with crucial operational support. All major vendors were considered, and those that had a truly innovative and proven practical application of the technology in today’s marketplace have been recognized. Fiserv IPS-Sendero was chosen based on new functionality developed for its KRM solution, which incorporates rollover modeling of existing cash flows and new business flows based on ratings.
Matthew Attwood, editor, Credit magazine said, “Fiserv IPS-Sendero is a key player in the enterprise risk management space, and through continued product development and innovation around its KRM solution, financial institutions are equipped with the tools necessary to perform comprehensive risk analytics in an increasingly demanding environment.”

Suresh Sankaran, director of strategic consulting for Fiserv IPS-Sendero, said, “A comprehensive approach to risk management is essential to the success of any banking organization, and practices that can optimize risk-adjusted pricing and returns throughout the organization will lead to improved productivityand performance. There is no one-size-fits-all formula; however our solution enables liquidity to be modeled on a credit-adjusted basis, a key to successful risk management.”

Fiserv IPS-Sendero’s KRM solution enables users to analyze all current and future credit-adjusted cash flows by credit rating, which ensures that pricing is correctly applied based on the ratings category that the cash flow falls into. In addition, liquidity is correctly assessed based on customer creditworthiness, which is determined by the ratings profile. Users can incorporate either agency credit ratings or use the various credit models available within KRM to generate default probabilities and compute dynamic cash flow migrations.

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