Oracle has announced a suite of financial services analytical applications for enterprise performance management (EPM). This is based on the merged capabilities of Oracle Financial Services Applications (OFSA), Oracle’s Hyperion, PeopleSoft EPM, and Oracle Reveleus applications. The vendor worked with a 17-member customer advisory board throughout the design process.
The applications are all built on the same financial services data model and applications architecture such as the Reveleus suite of enterprise risk management applications, which the vendor says makes it easier for customers to add additional applications with only marginal incremental investments. The suite includes the following applications:
- Profitability management: designed to help financial institutions calculate the profitability of products, channels, segments, and individual customer relationships on a risk-adjusted basis by enabling them to perform complex allocations of operating costs, net interest, capital and other components to the underlying transactions and balances.
- Funds transfer pricing: lets banks determine the account level spread earned on assets and liabilities, and the spread earned as a result of interest rate exposure. The application supports a range of transfer pricing methodologies that are based on industry best practices in order to help calculate accurate results at the lowest available level of detail.
- Pricing management, transfer pricing component: provides real-time transfer rates to support pricing loan transactions that reflect immediate market conditions. Its risk-based pricing methodologies use the transfer pricing methodology and prepayment assumptions found in the funds transfer pricing application, and include all elements of the profit and loss for an account.
- Asset liability management: designed to help financial services institutions manage and monitor interest rate risk, liquidity risk, foreign currency risk and earnings risk. The application models every loan, deposit, investment and portfolio individually, to help institutions better understand the risks they have assumed and their sensitivity to economic conditions.