Of Special Interest

30th September 2011

Fiserv launches bank risk analysis tool

Fiserv launched BancAnalyst Risk on Thursday. The tool is designed to help banks analyse and manage their own institutional risk. It scores a financial institution's exposure in seven enterprise risk components:

- Market Area Risk — footprint size and industrial concentration
- Velocity Risk - relative growth, or velocity, of the franchise
- Strategic Risk — institution's portfolio diversification
- Capital Management Risk — capital adequacy, generation and exposure
- Asset Quality — asset loss rate, exposure and coverage
- Liquidity Risk — relative short term funds generation capacity
- Earnings Composition — volatility and sustainability of earnings

Fiserv state "The BancAnalyst tools are part of Bank Intelligence Solutions® from Fiserv which combine comprehensive industry data with the thought processes of experienced bank advisors to create a unique, automated solution to help financial institutions drive franchise value. These online advisory solutions offer financial institutions continuous access to objective, expert analysis of their institutions' performance".

"The lesson re-learned from the financial crisis of 2008 is the importance of focusing on all three drivers of franchise value: profit, growth and risk. Financial institutions are focused on building an earnings stream that is sustainable, which requires an understanding of, and resource allocation towards, enterprise risk management," said Steve Cotton, president, Bank Intelligence Solutions at Fiserv. "BancAnalyst Risk enables financial institution executive management to pinpoint risks that threaten the sustainability of earnings streams and to identify industry solutions that can manage or mitigate those risks. The solution introduces innovative risk metrics that financial institutions can leverage in regulatory compliance, strategic planning or board reporting."