Dear SAP Banking community members,
Last week I had a very interesting conversation with the manager of one of the main references when it comes to Bank Analyzer implementations.
As the discussion moved to the client’s perception of the cost and return of the implementation, he described how the client’s CFO thought that it was cheaper to hire 3 accountants for preparing the regulatory reporting than getting the reporting done by Bank Analyzer.
It’s an interesting point, wrong in my opinion, but common enough to deserve being discussed here.
Assuming the 3 accountants could generate the regulatory reporting, it’s unlikely, for not saying impossible they will be able of offering the disclosure levels that Bank Analyzer does.
With much manual work, supported by spreadsheets, and paper based analysis you can build a static representation of the Banks statements/solvency; but we’re in a dynamic environment in which explaining the results is more important than the results themselves.
We live in a globally interconnected economy, and unexpected events spread their effects to economic agents very far from the place where the event happened.
On the other hand, uncertainty and lack of confidence have moved the whole financial system into a liquidity trap. Getting capital and liquidity requires very big efforts to Banks and Organizations.
Central Banks are trying to push the economy with extremely low interest rates and unorthodox quantitative easing initiatives, but recovery has not arrived. In fact it’s not even coming. Several months after every injection of liquidity their effects disappear, bringing instability to the bonds and stocks market but keeping high prices of critical commodities.
This is a systemic crisis which will last for years and it will end with a new model in the Financial System (from volume to efficiency).
It’s in this new context where we must position the return on investment of a SAP Banking implementation, particularly Bank Analyzer.
In a liquidity trap, Capital and Liquidity are very scarce resources. In this environment attracting investors with capital and clients with liquidity are the most critical activities.
The answer is disclosure; we’ve seen many myths falling since September 2008. As the crisis evolves, investors will be more and more suspicious and they will only believe if banks give them reasons to believe.
Like Caesar's wife, banks should be above suspicion.
Looking forward to read your opinions.
Kindest Regards.
Ferran.
Last week I had a very interesting conversation with the manager of one of the main references when it comes to Bank Analyzer implementations.
As the discussion moved to the client’s perception of the cost and return of the implementation, he described how the client’s CFO thought that it was cheaper to hire 3 accountants for preparing the regulatory reporting than getting the reporting done by Bank Analyzer.
It’s an interesting point, wrong in my opinion, but common enough to deserve being discussed here.
Assuming the 3 accountants could generate the regulatory reporting, it’s unlikely, for not saying impossible they will be able of offering the disclosure levels that Bank Analyzer does.
With much manual work, supported by spreadsheets, and paper based analysis you can build a static representation of the Banks statements/solvency; but we’re in a dynamic environment in which explaining the results is more important than the results themselves.
We live in a globally interconnected economy, and unexpected events spread their effects to economic agents very far from the place where the event happened.
On the other hand, uncertainty and lack of confidence have moved the whole financial system into a liquidity trap. Getting capital and liquidity requires very big efforts to Banks and Organizations.
Central Banks are trying to push the economy with extremely low interest rates and unorthodox quantitative easing initiatives, but recovery has not arrived. In fact it’s not even coming. Several months after every injection of liquidity their effects disappear, bringing instability to the bonds and stocks market but keeping high prices of critical commodities.
This is a systemic crisis which will last for years and it will end with a new model in the Financial System (from volume to efficiency).
It’s in this new context where we must position the return on investment of a SAP Banking implementation, particularly Bank Analyzer.
In a liquidity trap, Capital and Liquidity are very scarce resources. In this environment attracting investors with capital and clients with liquidity are the most critical activities.
The answer is disclosure; we’ve seen many myths falling since September 2008. As the crisis evolves, investors will be more and more suspicious and they will only believe if banks give them reasons to believe.
Like Caesar's wife, banks should be above suspicion.
Looking forward to read your opinions.
Kindest Regards.
Ferran.
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