The uncertainty of future interest development, the fluctuations in customer deposits and customer interest rates in the private customer sector represent the major challenges for FlexFinance(r) Margin Optimiser.
Unlike previous methods for the management of core deposits, the Margin Optimiser uses dynamic replication to provide optimum investment decisions, relevant risk ratios while preventing compensation payments.
It takes current and future fluctuations of the term structure of interest rates and of deposits into account.
With FlexFinance(r) Margin Optimiser, FERNBACH has created a new and unique tool that provides a reliable basis for the investment of core deposits in volatile markets, both today and in the future. The Margin Optimiser uses stochastic optimisation and creates scenarios that propose an optimum replication portfolio.
A benchmark study conducted specially for NORD/LB by the Institute for Operations Research at the famous Swiss University of St. Gallen prior to implementation proved the potential of the Margin Optimiser to increase income.