
Regional Banking
Integrated regional bank risk management and secure workflow control in one solution
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The Challenge
New and changing regulations and increased enterprise complexity require appropriate management controls and reporting across clients, counterparties and investments. Having a single trusted data source across the front, middle and back office can provide immediate access to pre- and post-trade analytics that can measure liquidity and risk. Flexible risk management tools that enable stress testing and scenario planning can provide a competitive advantage.
The Opportunity
There is opportunity for improved profits by optimizing business operations. Consolidating all relevant data within a single source of truth through a centralized risk solution can enable information to be shared across divisions to overcome organizational silos. Maximizing the organization’s expertise and resources provides greater transparency, insight and responsiveness to market requirements.
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The Openlink Solution
Openlink offers regional banks a full front-, middle- and back-office end-to-end solution encompassing transactional, operational, compliance, risk management and accounting capabilities. The flexible tool set helps optimize investments, funding and operations through configurable trade entry facilities, real-time position management and advanced pre-trade portfolio analytics. Broad, in-depth product coverage includes money markets, investment securities, foreign exchange, commodities and all associated derivatives, supporting all of your business needs globally.
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A single solution for risk management enhances transparency
ChallengeBanks are increasingly required to monitor risks across multiple dimensions. Reporting must be timely, accessible and actionable. Responses to market conditions are needed to enable quick decision-making and to address compliance and regulatory requirements.
SolutionDetailed pre-trade analytics are integral to Openlink’s regional bank risk management capabilities. Accurately assess the impact of decisions on your risk and liquidity by monitoring your investment exposures and risk limits. Efficiently evaluate counterparty risk by marking client exposures to market rates and through robust market risk tools that allow back-testing and stress test scenarios, including what-if planning. All data that resides within the single source system is consolidated and reliable, reducing the need for multiple system integrations and manual processes.
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Improve performance with one fully integrated system
ChallengeAs many banks evolve to evaluate processes at an enterprise level, some still run operations separately within silos. Having a single system that can consolidate data and monitor the complete lifecycle of a transaction across the organization can enhance responsiveness and optimize collateral and liquidity.
SolutionBy consolidating systems and using a single solution, there are greater opportunities for efficiency and cost savings. Having one source of data provides greater consistency and minimizes the need for disparate spreadsheets and maintenance of multiple separate databases. Openlink provides an integrated view across front, middle and back-office systems, providing greater insight into data, reporting and workflow processes. By automating processes with centralized controls in place, organizations can free up resources to focus on other critical business priorities.
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Manage and meet regulatory obligations
ChallengeTransparency around risk is a critical requirement in today’s environment. Banks must have processes in place to oversee credit and risk metrics, such as value at risk (VaR), credit value adjustments (CVA) and DD01 (basis point movements of large security positions) to measure the impact of market changes on liquidity, positions and counterparties.
SolutionOpenlink’s comprehensive reporting tools and pre-trade analytics deliver actionable insights into your workflow. Monitor security processes, buy-outs, trade amendments, and credit status to provide updates and reports when needed. Review the state of your portfolios, with attribution tools that track historical details of positions, transactions and cash flows. Flexible reporting tools have queries, filters and sorting based on a single resource, so that results have a greater degree of certainty and reliability.
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Data security processes ensure tight controls around access rights with full auditability of system changes
ChallengeBanks are required to monitor and segregate duties through security controls at a granular level. While many systems offer basic access and accountability around tracking changes to limits and other operating parameters, few offer a complete solution that does not require outside system logs.
SolutionOpenlink’s secure access level and audit capabilities offer the highest degree of control available. Administrators can grant specific user access rights down to the system level and functional area, defining roles by staff responsibility. Audit capabilities track changes made to trade terms, confirmations, correspondences, valuation data, prices or clearing information – all by designated user.
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Multi-asset class complexity made simple
ChallengeLarger banks with international exposures require the ability to manage positions across both cleared and physical instruments and markets to meet the diverse needs of their end clients and counterparties.
SolutionFrom interest rate swaps to foreign exchange rate risk, from fixed income and commodities to equity derivatives, Openlink provides hedging solutions for all your business needs. Hedge both the physical product and exchange-traded instruments through one system, eliminating the need to track outliers manually on spreadsheets or third-party tools.
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Products that make up your Openlink Solution: