Oracle Financial Services Applications (OFSA)

On February 6, 2010 — the Oracle corporation announced the complete and integrated complex of analytical applications for performance management of financial institutions - the EPM complex of the Oracle Financial Services Analytical Applications analytical applications allows the companies providing financial services to eliminate organizational confusion in functional duties which takes place between the divisions which are engaged in risk management and financial management that as much as possible promotes growth of profitability and achievement of managerial perfection today".

The new complex of applications is based on the integrated opportunities of solutions of Oracle Financial Services Applications (OFSA) Oracle Hyperion, PeopleSoft EPM and Oracle Reveleus. At each development stage Oracle worked in close cooperation with community Customer Advisory Board ("expert advice of customers") integrating 17 representatives of the companies.

New solutions are developed with the purpose to help the organizations is focused to plan future efficiency and decrease in the expected risks; plan a net percentage margin, predict the contingencies capable to affect liquidity, approve forecasts for an assets/liquidity status with annual budgets and "floating" forecasts; and also to give to the companies the chance to be beyond traditional assessment of income and expenses and to pass to active management of future risks and results.

Oracle Financial Services Analytical Applications for performance management of financial companies

Oracle Financial Services Profitability Manageme (management of profitability) — helps financial institutions to count profitability of products, channels, segments and interrelations between specific clients taking into account risks, allowing to perform complex distribution of operating expenses, net income, capital and other elements by the main categories of transactions and balance sheet items.

Oracle Financial Services Funds Transfer Pricing (transfer pricing) — allows banks to define a spread or a margin in structure of assets and liabilities at the level of transactions and also the spread received as result of exposure to the interest rate realignment). This application is supported by a full range of the methodologies of transfer pricing based on the best industry practices to help financial institutions to receive the most exact results at the most available detail level.

Oracle Financial Services Pricing Management (management of pricing) and the Transfer Pricing Component component (the module of transfer pricing) — provide transfer rates in real time for support of pricing of credit deals, taking into account the current operational market situation. Applications are used by the pricing methodologies based on risk management which use the same mechanism of transfer pricing and a preliminary estimate of potential risks, as Oracle application of Financial Services Funds Transfer Pricing. This mechanism operates with all elements of profits and losses for each account.

Oracle Financial Services Asset Liability Management (asset-liability management) — helps financial companies to manage and control different risks, including such categories as an interest rate risk, risk of loss of liquidity, a currency risk (probability of the losses caused by change in the exchange rate of foreign currencies) and risk of short-reception of profit. The application models each credit, deposit and investment deal and also separately each portfolio (securities, investments, the real estate) to help financial institutions better to understand risks which they assume, and to estimate susceptibility to change of economic conditions.

Oracle Financial Services Asset Liability Management Analytics (the analytical solution for asset-liability management) is an upgraded version of the Oracle Asset Liability Management analytical applications. The main updates are dictated by sharp need of the financial sector for tools of assessment and risk management of an interest rate and loss of liquidity. Additional opportunities of the updated application are constructed on the existing functionality and include extensive information on interest rate risks, new metrics, reports and dashboards which help to understand and estimate more deeply many economic factors especially subject to risks, for example, such as liquidity deficit (Liquidity Gaps), concentration of reserves (Funding Concentrations), profiles of distribution of deposits (Deposit Distribution Profiles), easily negotiable assets (Marketable Assets) and liquidity rates (Liquidity Ratios).

Oracle Financial Services Balance Sheet Planning (planning of balance) is the only solution for budgeting which is specially developed for planning processes, budgeting and forecasting in banking sector. This application which basis the Oracle Hyperion Planning technology is allows banks to plan future profitability and profitability taking into account risks. The application collects information on character and features of relationship with each client for exact modeling of changes of its balance and provides the most exact forecasts for a net percentage margin and possible profits.

Oracle Financial Services Analytical Applications is the completely integrated portfolio of analytical solutions on such functional areas as enterprise risk management, performance management, observance of regulatory requirements and also cumulative knowledge of the client and his preferences. Applications are created based on shared infrastructure which contains the unified model of financial data, the general system of analytical calculations and uses the industry-leading platform of a business intelligence Oracle Business Intelligence.

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Susoykin Victor, the chief of the department of finance applications RDTECH, tells about what innovations in Oracle Financial Services Analytical Applications can be useful to customers: "In the new version of Oracle significantly upgraded the solution OFSA thanks to consolidation of its opportunities with acquisitions of the last years (companies Reveleus, Mantas, Hyperion, Siebel). Functionality due to consolidation of infrastructures Oracle Reveleus, the solution for financial risk management, and OFSA is significantly expanded. Also the system architecture changed. Now OFSAA is an application package, completely constructed on three-unit architecture. The OFSAA application is not demanded any more by installations on the PC of the user and work via the web browser. They became much more convenient for business users at setup of calculations of a financial result and preparation of the management reporting. And, of course, tasks of implementation and technical support of OFSAA for IT specialists considerably became simpler."