Dear,
Recently I spoke with the Country Manager of an SAP Partner who has detected several opportunities for implementing Bank Analyzer - AFI in his region.
He mentioned his concerns about the challenges of implementing Bank Analyzer, compared to other competitors.
"It's hard to sell an IFRS Accounting System more expensive to implement, even if it comes from the leader on developing Integrated Information Systems".
But comparing Bank Analyzer with an IFRS Accounting system is a mistake, because Bank Analyzer is not just an accounting system.
Bank Analyzer is a Capital Optimizer, which also fulfills the IFRS reporting requirements of a Financial Institution.
Today, the executives of most of the Banks and Insurance companies of the world are concerned with being IFRS compliant in the next months, because they're very aware of the consequences if they are not.
But this is just the beginning, at the same time the credit risk managers are concerned about the Basel III reporting requirements and the justifications of their IRB Risk models.
The Bank's information architects are trying to determine the full implications of the BCBS 239 directive. And very soon, they will discover that IFRS 15 also applies for Banks and it comes with very deep implications for the Bank Information Systems Architecture.
And for making it worse, bank's executives are concerned with the rising Capital Requirements, including the Total Loss Absorbing Capacity regulation, and the difficulties of generating value for their shareholders in a difficult environment of margins reduction.
It seems that the regulator has decided to make the bankers’ lives difficult, just when they face the worse economic environment with negative interest rates and limited growth.
This is not personal. Regulators know that we're in the middle of a Systemic Crisis that will transform the Financial System, from a model based in volume, to a model based in Efficient Management of Capital.
That's why they are driving bankers towards the new paradigm, saturating them with new and harder regulations.
IFRS 9, Basel III, IFRS 15, BCBS 239, TLAC are not isolated pieces of regulation, they're a complete framework designed to put Capital Efficiency at the centre of the banks' strategic objectives.
Additionally, auditors look at the figures, with the obligation of reconciling the information provided by all the reporting requirements.
The response to this challenge requires a holistic modelisation of the Bank's Capital and Liquidity. This is the Integrated Financial and Risk Architecture of SAP Bank Analyzer.
In one sentence; the Bank Analyzer IFRA provides an accurate mesurement of the Capital and Liquidity, generated and consumed, by any potential combination of analytical dimensions, including the business processes involved.
For instance, IFRS 9 requires to report in "accounting terms", the Capital generated and consumed by business segment, including Fair Value and Impairment Calculations.
Basel III and Total Loss Absorbing Capacity regulations require banks to report the Capital consumed by business segment, and BCBS 239 defines the Data Governance for proving the accuracy of the Capital and Liquidity calculations.
Bank Analyzer Primary Objects and Financial Position Objects are the bricks of the holistic data model, and the Bank Analyzer Risk Engines provide the necessary calculation logic to fulfill the above and future reporting requirements.
This is the answer I always give to clients who ask me why they must implement Bank Analyzer.
Join my SAP Banking Group at: http://www.linkedin.com/e/gis/92860
Looking forward to read your opinions.
K. Regards,
Ferran.
Recently I spoke with the Country Manager of an SAP Partner who has detected several opportunities for implementing Bank Analyzer - AFI in his region.
He mentioned his concerns about the challenges of implementing Bank Analyzer, compared to other competitors.
"It's hard to sell an IFRS Accounting System more expensive to implement, even if it comes from the leader on developing Integrated Information Systems".
But comparing Bank Analyzer with an IFRS Accounting system is a mistake, because Bank Analyzer is not just an accounting system.
Bank Analyzer is a Capital Optimizer, which also fulfills the IFRS reporting requirements of a Financial Institution.
Today, the executives of most of the Banks and Insurance companies of the world are concerned with being IFRS compliant in the next months, because they're very aware of the consequences if they are not.
But this is just the beginning, at the same time the credit risk managers are concerned about the Basel III reporting requirements and the justifications of their IRB Risk models.
The Bank's information architects are trying to determine the full implications of the BCBS 239 directive. And very soon, they will discover that IFRS 15 also applies for Banks and it comes with very deep implications for the Bank Information Systems Architecture.
And for making it worse, bank's executives are concerned with the rising Capital Requirements, including the Total Loss Absorbing Capacity regulation, and the difficulties of generating value for their shareholders in a difficult environment of margins reduction.
It seems that the regulator has decided to make the bankers’ lives difficult, just when they face the worse economic environment with negative interest rates and limited growth.
This is not personal. Regulators know that we're in the middle of a Systemic Crisis that will transform the Financial System, from a model based in volume, to a model based in Efficient Management of Capital.
That's why they are driving bankers towards the new paradigm, saturating them with new and harder regulations.
IFRS 9, Basel III, IFRS 15, BCBS 239, TLAC are not isolated pieces of regulation, they're a complete framework designed to put Capital Efficiency at the centre of the banks' strategic objectives.
Additionally, auditors look at the figures, with the obligation of reconciling the information provided by all the reporting requirements.
The response to this challenge requires a holistic modelisation of the Bank's Capital and Liquidity. This is the Integrated Financial and Risk Architecture of SAP Bank Analyzer.
In one sentence; the Bank Analyzer IFRA provides an accurate mesurement of the Capital and Liquidity, generated and consumed, by any potential combination of analytical dimensions, including the business processes involved.
For instance, IFRS 9 requires to report in "accounting terms", the Capital generated and consumed by business segment, including Fair Value and Impairment Calculations.
Basel III and Total Loss Absorbing Capacity regulations require banks to report the Capital consumed by business segment, and BCBS 239 defines the Data Governance for proving the accuracy of the Capital and Liquidity calculations.
Bank Analyzer Primary Objects and Financial Position Objects are the bricks of the holistic data model, and the Bank Analyzer Risk Engines provide the necessary calculation logic to fulfill the above and future reporting requirements.
This is the answer I always give to clients who ask me why they must implement Bank Analyzer.
Join my SAP Banking Group at: http://www.linkedin.com/e/gis/92860
Looking forward to read your opinions.
K. Regards,
Ferran.
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