Sunday, June 16, 2024

ABN AMRO Mandates Wolters Kluwer and SAS to Integrate Finance, Risk and Reporting in Major RegTech Project

ABN AMRO, the third largest bank in the Netherlands with more than 22,000 employees, has chosen Wolters Kluwer and SAS to provide a truly integrated finance, risk and regulatory reporting software solution. The implementation of the software is part of the bank’s major transformation project, the Finance and Risk Architecture Alignment Initiative (FRAAI). The project is “designed to better meet increasing requests internally as well as from regulatory bodies for ever more granular or different data within shorter time lines” according to a press statement from the companies.

Better management of high-quality data and improved risk analytics are key pillars to meet the increasing need for control, intelligence and insight in the bank’s performance. “At the same time the bank aims to optimize its IT maintenance costs, promote automation and increase the efficiency and agility of the finance and risk processes. Together, Wolters Kluwer and SAS will provide the software component ABN AMRO needs to achieve these goals,” the statement adds.

Following a thorough evaluation of a wide range of available solutions, ABN AMRO opted for a truly integrated approach that will complement the FRAAI objectives,” commented Kees Visser, Finance Director of ABN AMRO. “The partnership of Wolters Kluwer, with its excellent reputation in regulatory reporting, ALM and finance, along with SAS and its strength in credit risk and stress testing, means we will have a powerful software solution to comply with current and future reporting requirements. We will be well positioned to ensure increased data granularity and transparent data lineage.

ABN AMRO will also use Wolters Kluwer’s OneSumX for Regulatory Reporting, along with OneSumX for Finance and OneSumX Asset and Liability Management (ALM), ensuring an integrated approach to all finance, risk and reporting processes at the bank.

  • OneSumX for Regulatory Reporting uses a single source of data to ensure consistency, reconciliation and accuracy and includes the firm’s Regulatory Update Service which actively monitors regulation in approximately 50 countries.
  • OneSumX for Finance, meanwhile, provides financial institutions with fully integrated finance functionality, from event to disclosure, with built-in content and expert support to flexibly address the finance challenges in this fast-moving business and regulatory environment.
  • OneSumX ALM is a centralized data repository combining contract data, balance sheet structures, counterparty and market data complements the ALM solution and is an integral part of the overall system.

ABN AMRO will also use SAS® risk and finance capabilities. Data management and visualization will be used to ensure that all risk and finance data is properly sourced, processed, governed and available for self-service analysis and reporting. Maintaining end-to-end data lineage across the entire FRAAI landscape will be crucial. Whether it is estimation of risk parameters, or handling all FRAAI forecasting activities for scenario-based capital planning, IFRS 9, stress testing and Pillar 2 capital requirements, SAS risk solutions, meanwhile, will make these processes more efficient and more valuable to the Bank.  The bank will also use the firm’s enterprise model risk management and process orchestration –  SAS risk governance capabilities “will be used across the bank, promoting transparency, traceability, and automation of the various FRAAI processes.

To ensure seamless integration and efficient integration of information, SAS and Wolters Kluwer will create an Exchange Layer to connect their respective software components.

Clive Pedder, London-based Executive Vice President and General Manager, for Wolters Kluwer’s Finance, Risk and Reporting business, comments: “ABN AMRO, like all major banks, is acutely aware of the trend for increased data granularity and transparent data lineage. Its FRAAI project seeks to ensure one central data storage, based on a truly integrated regulatory compliance and reporting solution. ABN AMRO rightly has exacting standards and, following a robust competitive tender process, I am delighted our team of experts has been chosen to work with the bank and our partners at SAS to provide ABN AMRO with a transformational software solution. Implementation of this platform will be crucial for ensuring the bank’s finance, risk and reporting obligations are achieved.

Troy Haines, Senior Vice President and head of the Risk Management division at SAS adds: “We recognize the importance of strategically combining our data management, visualization and finance and risk analytics capabilities with the finance and regulatory reporting strengths of Wolters Kluwer. Together, we are uniquely positioned to provide a truly integrated finance and risk application ecosystem that will help ABN AMRO to effectively tackle the increasing regulations, promote automation, as well as become more agile and cost-efficient. A true win-win across the board.

The deal follows yesterday’s news that SME Development Bank Malaysia Berhad (SME Bank), the country’s development financial institution, has chosen Wolters Kluwer’s OneSumX to provide its software for managing International Financial Reporting Standard (IFRS) 9. The accounting standard replaces the IAS 39 standard and came into effect at the start of the year. It addresses classification and measurement, impairment methodology and hedge accounting.

OneSumX IFRS 9 is a comprehensive and modular solution which provides the financial industry with a solid framework to capture and store all relevant contractual information, manage events and transactions, IFRS calculations, accounting generation and processing up to the delivery of the disclosures.

Leading financial services firms from across the world have implemented the company’s OneSumX solution for Regulatory Reporting, Risk and Finance (including IFRS 9 solutions). Major financial services providers that have recently announced their use of Wolters Kluwer include Bahrain Middle East Bank, China Everbright Bank, China Merchants Bank, LGT, Nordea, BBVA and CIBC.

Wolters Kluwer has received a number of recent awards, providing independent verification of its leading market position in integrated regulatory reporting. Chartis Research, for example, recently named Wolters Kluwer a Category Leader for IFRS 9 solutions, for the second year running, as well as a Category Leader in its Markets in Financial Instruments Directive II (MiFID II) Report. Wolters Kluwer has won a number of other accolades for its dominant position in regulatory reporting from the likes of Wealth & Finance InternationalFinTech FinanceData Management Review and Corporate Vision magazine.

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