Banking and Financial Services firms are moving beyond the compliance decade. The substantial investment in data organization and process improvement to meet the increased regulatory demands of recent years has provided an environment where firms are now seeking to apply new ways of managing risk and performance. Advanced behavioural analytics is an enabler of improved insights and enhanced judgement in identification, projection and optimization.
Waltham Analytics is a new breed of analytics platform. We deliver risk management and scenario analytics relevant to user specific business and risk management goals. Our platform offers users highly intuitive, easily managed, interface and access to the tools required to identify, project and deliver improved business outcomes for all stakeholders.
The Addressable Problem
The banking market has undergone the most significant changes in a generation with the introduction of 100s of new regulatory and business requirements since the financial crisis. The resulting adaption of bank processes and the advancement in scalable technologies presents new challenges, and opportunities, for balance sheet management.
Many companies have focused on adapting data organization and process automation to meet regulatory demands. One consequence of this has been the creation of numerous teams that may be using the same, or similar, data sets but in a disconnected or silo fashion.
The introduction of further new requirements for increasingly granular, business specific, dynamic scenario analytics means that new, complimentary, techniques are needed.
Banks and financial services firms need to experiment with technologies that can meet the demands of multiple stake holders, and at the same time, connect an organization around data, at reasonable cost.
This requires the integration of several disciplines across risk management and, in particular, the development of analytics to forecast potential outcomes of stress events and optimization strategies.
Analytics platforms which enable collaboration around scenario construction, execution, review and adjustment will be in demand. Capability to draw internal models into scenario construction, provide full data and user action lineage is required.
Use-cases for advanced behavioural analytics are vast, but in Treasury/ALM funding optimization, stressing cost of funds against micro and macro events, and optimization of regulatory resilience vs. risk appetite are good places to start.
Solving The Problem
Solving some of these challenges by applying scalable, rapid, and ad-hoc scenario analysis will substantially increase the agility of risk managers and better connect Treasury, Finance, Risk and ALM expertise.
All banks need to manage the tension and constraints between regulation, return, market and balance sheet so as to meet stakeholder expectations from Clients, Shareholders and Regulators. Early adopters are likely to be able to gain an advantage as the pace of using these techniques picks up.
Being able to more robustly test liquidity and funding approaches brings benefit to LCR, NSFR, PRA110, ILAAP and ultimately stress testing management.
Waltham Analytics was created having identified the need for a new approach to balance sheet scenario analysis. Business and technology expertise enables the team to identify use cases and apply advanced approaches to developing a fit for purpose, flexible platform.
Waltham Analytics Advanced Scenario Analytics
Waltham Analytics compliments existing back end and vendor technologies as a point solution to experiment with advanced behavioural analytics when developing business stress or optimization approaches. We help capture the momentum as Treasury, Finance, and Risk become more integrated and greater influencers of business strategy.
We believe that the use of modular subscription based advanced analytics platforms will increase. The combination of regulation, increasing adoption of digital tools for risk and financial planning and market fragmentation will see these approaches apply to:
- Liquidity for risk and business managers
- Optimization of risk appetite / returns
- Segment specific decision analytics
- Stress Testing fine grain bespoke scenarios
As the industry continues to adjust to the regulatory and competitive landscape it will increasingly adopt advanced approaches to both meet standardization needs (regulatory) but also require the tools to move beyond compliance to drive value from the data collected to meet regulatory requirements.
Waltham Analytics provides a solution for these market segments in an advisory and product delivery capacity.