FINANCIAL SERVICES

Examples of solutions InforSense has provided to Financial Services customers include:

Credit Risk Scoring

Credit risk is the major risk that most banks must manage during the normal course of lending and credit underwriting. Many banks are looking at Basel II regulatory capital guidelines as a spur to develop their credit rating capability. The main objectives of Basel II are to increase the sensitivity to credit risk, and to provide incentives for banks to enhance their risk-management systems and processes.

Credit analysis and modeling is fundamental to the success of a bank. Each bank must develop a strong internal competency around credit modeling. A well developed credit rating system can effectively and efficiently identify those borrowers who are most likely default. In addition, it solves the expert inadequacy problem and can be carried out at a very low cost. The improved credit quality significantly reduces the risk of bankruptcy and the requirement for capital.

InforSense has been used to develop credit rating systems that identify which borrowers are likely to default. The rating system is then deployed to end users using highly interactive, visual reporting tools.

Market Risk and Asset Management

InforSense enables risk managers to integrate traditional market risk, such as value-at-risk investment scenarios, with other risk disciplines such as credit risk and operational risk. This integrated approach provides risk managers with a comprehensive view of enterprise risk through a single interactive reporting environment, enabling them to give better advice to portfolio and asset managers.

InforSense also provides a solution specifically for Asset Managers that empowers them to rapidly draw insights from the vast amount of data held within their organizations. Asset Managers can quickly and accurately perform research and analysis on text, transcripts, and other data, providing an interactive view of fund performance, risk profiles of an individual and a 360 degree view of the entire organization.

Operational Risk Management

Financial institutions face a range of operational risk challenges – from internal fraud and employee errors to money laundering and technology risks. In addition, they often don’t have the internal loss data needed to drive “objective” predictive modeling. As a result, they end up with subjective analyses not based on quantitative data, irrelevant external data running their models, and more key risk indicators and processes than they can realistically manage.

InforSense provides a common platform to address these disparate challenges. It allows operational risk analysts, risk managers and quantitative risk specialists to rapidly create and test meaningful operational risk scenarios and risk reporting applications. The Operational Risk Management solution provides both a flexible platform that can integrate data from a wide range of data sources, and powerful visualization capabilities enabling next generation interactive reporting and dashboards.

Campaign Effectiveness

Effective marketing campaigns are critical to making new financial products successful either by directly marketing to customers or by marketing to financial advisers. In a leading financial services organization, database marketing campaigns are delivered in a multi-wave, multi-channel environment. InforSense has analytical processes that enable the customer to successfully measure the effectiveness of different campaigns and to look at metrics such as:

• Cost per lead conversion
• Cost per channel
• Effectiveness of channel to the campaign.

These metrics are delivered to end users via interactive visualization and reporting tools to deliver different effectiveness reports across the organization.