Oracle has launched Oracle Financial Services Profitability and Balance Sheet Management Cloud Services, designed to help financial institutions manage balance sheet risk and drive growth in treasury and finance solutions.
The new suite of software-as-a-service (SaaS) solutions features applications such as asset liability management, cash flow engine, funds transfer pricing, and profitability management.
It provides banks with deeper insights into profitability, interest margins, interest rate risk, and balance sheet trends along with addressing complex risk management reporting requirements.
Currently, the services are available around the world.
The suite also offers a framework for multi-dimensional profitability and balance sheet management, allowing financial institutions to better understand profitability across various business dimensions.
In addition, it allows organisations to utilise flexible forecasting assumptions to model net interest income (NII) precisely and meet risk management requirements.
The applications leverage generative artificial intelligence (AI) and natural language generation (NLG) to improve data interpretation by automatically creating detailed insights.
Oracle Financial Services executive vice president and general manager Sonny Singh said: “With these cloud-native services for profitability and balance sheet management, we are empowering financial institutions to optimise operations, and drive more sustainable growth by using advanced analytics and integrated AI to gain critical insights, such as drain on profitability, or a risk-adjusted view of performance to immediately adjust to market realities.”
Built on Oracle Cloud Infrastructure, the new services use Oracle Autonomous Database, Oracle Analytics, and a domain-driven microservices architecture to ensure high performance, security, and scalability.
The cloud services are continuously updated on a quarterly basis, allowing banks to eliminate costly upgrades.
The profitability management feature of the new service provides a scalable allocation engine that enables detailed profit and loss (P&L) analysis across multiple dimensions. Meanwhile, the funds transfer pricing capability allows for a more accurate assessment of profitability and effective interest rate risk management.
Furthermore, the cash flow engine offers detailed insights into liquidity and cash management. The asset liability management feature offers accurate valuations, views of earnings stability, and balance sheet risk sensitivity.
This week, Oracle also launched a new AI-powered case management solution, Oracle Financial Services Crime and Compliance Management Investigation Hub Cloud Service, to enhance the speed and accuracy of financial crime investigations.
