"Now that the financial tsunami has hit the shores in Asia/Pacific, changing dynamics within the banking sector calls for a risk infrastructure that can assist financial institutions to deal with uncertainties, associated risks, and opportunities more effectively," comments Li-May Chew, CFA, Senior Research Manager for Financial Insights Asia/Pacific.
This report provides a comprehensive analysis of nine credit risk IT solutions vendors - Algorithmics, Fiserv (previously known as Fiserv IPS-Sendero), Misys Almonde, Moodyâs Fermat, Oracle Reveleus, QRM, SAP, SAS Institute, and SunGard - covering amongst others, their credit risk offerings, solution architectures, product components and notable functionalities, pricing structures, representative references globally, as well as presence in Asia/Pacific. It also provides Financial Insights' assessment of the strengths and limitations of these vendors based on their value propositions, feedback from the banking community and Financial Insights' observations.
Chew adds, "The core commonalities of these vendors include a diverse client reach across geographies and financial sub-sectors, a wide and expanding footprint of global installations, and an integrated, scalable architectural framework. All nine vendors are worthy contenders. While Algorithmics, Moody's Fermat, Fiserv and QRM stood out for their distinct features and extensive functionalities, Oracle Reveleus, SAP, SAS Institute and SunGard boast a varied portfolio of clients. Misys Almonde, on the other hand, offers rapid web-delivery deployment and is deeply entrenched in emerging markets."
To ensure alignment of strategies, policy objectives, and business processes with their credit risk framework, Financial Insights recommends that banks nominate a risk champion within the organization and ensure that risk awareness pervade the entire enterprise in order to shore up their current credit risk efforts. Beyond ascertaining that vendor functionality offerings correlate with their risk management requirements, other decisions need to be made around areas like the extent of customization preferred, the choice of a multiple versus one-system solution platform, and future functionality requirements.
Meanwhile, on the part of IT vendors, in order to ensure that their risk management initiatives resonate with the bankers, Financial Insights recommends that they focus time and effort on generating senior executive buy-in to ensure internal justification for purchasing the application; integrate their products or offer the option of a holistic risk management suite; conduct research on target market and not dismiss new competitors; and, be in the forefront of innovation.