Finastra today announced that Engie and Mobilize Financial Services are both using its Finastra KTP treasury management solution with integrated valuations engine and risk analytics from Lozenge.
The Prism module enables corporates to streamline and speed up their monthly closing process and to access advance risk calculations to manage exposure, as well as helping with regulatory compliance. One corporate has recently extended its use of the solution to daily margin calls after initial success with Mark-to-Market (MTM) calculations.
During monthly closing, treasurers can struggle with multiple sources of data and prolonged system processes, which are time consuming and can create risk and poor-quality liquidity and financial statement information.
The head of IT Treasury at Engie said, “With a large set of various financial assets, the closing periods were a long process due to the heterogeneous solutions we were using to calculate the MTM of transactions. With a fully integrated process, we now benefit from significant time savings during the closing period and enjoy the reliability that comes with this solution. For the same reasons, we have expanded the use of the solution to the daily margin call process, and we also use it for the pricing benchmark with our banks. We are rolling out the solution globally with our affiliates too.”
For other customers, the solution helps ensure compliance for regulations or standards, like Interest Rate Risk in the Banking Book and Credit-Spread-Risk in the Banking Book (IRRBB and CSRBB).
The head of financial risk at Mobilize Financial Services said, “With our size and activity (we’re a short-term credit service for people wishing to buy a new car) we are identified as a bank and are subject to European regulation accordingly. We are pleased to have a tool that enables us to quickly and efficiently meet regulatory requirements on interest rate risk, and especially now with the requirement for Credit Spread Risk in the Banking Book (CSRBB) compliance.”
Eric Aillet, Principal Product Manager at Finastra said, “Our KTP treasury management solution provides risk controllers with a consolidated view of their interest rate risk positions. With integrated Lozenge capabilities, users can calculate and monitor the interest rate sensitivity of all types of transactions. They can perform complex statistical risk calculations with various scenarios, including stress on rates, early repayment rates, outstanding under run-off and constant monitoring of the balance sheet.”
Renaud Savina, CEO of Lozenge Analytics said, “We’re thrilled to see such big names benefiting from our collaboration with Finastra. It is testament to the power of our tool and its ability to perform complex statistical risk calculations efficiently and flexibly for multiple scenarios. The integration with Finastra KTP delivers a great front to back solution.”