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"The SQLiaison team was responsive, demonstrated a good understanding of business goals, and delivered a quality product that is now valued across our banking network."
Manager, Retail Banking Innovations & Analytics
Canadian Chartered Bank
PDF on our Financial Expertise
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Financial Services Industry
The Financial Services Industry faces unique challenges with respect to managing information. It collects and has access to sensitive client information, compounded by the "Know your client" rule. However the industry is highly regulated in how it can use this information.
Even though Banks, Insurance companies, Brokerage firms, Asset managers, etc. are all part of the financial services industry, they all have their own specific needs in how to manage sensitive information. However within those differences, some common challenges emerge:
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Compliance
Regulations and regulatory bodies such as C-198, Basel II, OSFI, IDA, MFDA and OSC, generate an increased demand for mandatory reporting to financial institutions, for even more detailed and auditable information. To complicate matters further, internal policies and client constraints also have to be managed.
Competitive Advantage
Internal clients in fields as diverse as risk management, treasury services, brokerage, research, finance, etc. need to be able to comprehensively assess and analyze information, by taking full advantage of the consolidation, comparison and historical view of a single version of the truth.
Reducing Customer Defection
Customers who are satisfied are more likely to consolidate business and less likely to defect. Increasing customer satisfaction and share-of-wallet will ultimately trigger more loyalty. In order to increase share-of-wallet, one has to know the current product(s) used by a customer and the right products and services to fit each untapped need.
Risk Management
Risk management activities use raw data from a group of transactional systems to formulate indicators and assess levels of risks as well as potential losses. Since transactional systems are not homogeneous, a large amount of time is spent gathering and preparing the data, rather than analyzing it. The challenge consists in collecting, integrating, standardizing and analyzing the raw data.
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Business Intelligence, now more than ever, can address these challenges.
Risk Management Made Simple
SQLiaison's proposed risk management architecture gathers information from different source systems and centralizes it into a special risk analysis database formatted to facilitate analysis.
Information thus centralized allows for the following analysis possibilities:
- Holdings Analysis per asset class;
- Expected Loss (EL) and underlying derivatives per client segment, portfolio, etc.;
- Expected Defect Frequency (EDF), Exposure Assessment Default (EAD) and Loss Given Default (LGD);
- Risk Adjusted Return On Capital (RAROC);
- Credit behaviour score per client segment, account, etc.;
- Risk score characteristics: delinquency level, late cycles, average balance, overdraft level, guarantee type, etc.;
- Analysis of strategies and decisions in accounts.
Our longstanding partnerships with large financial services institutions have positioned us at the forefront of the Canadian Business Intelligence field. As a senior player, we best understand and respond to specific business challenges in the financial services industry.
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