 "FlexFinance Margin Optimiser")
 "FlexFinance Margin Optimiser")
Optimisation of Core Deposits
Higher income, lower volatility and a priori risk analysis
Statistical replicating portfolios, the conventional method for transforming core deposits into fixed-interest investments with constant apportioning, are no longer a viable option in the current competitive market environment.
Dynamic management with FlexFinance Margin Optimiser is superior to the standard static processes as far as risk and yield are concerned. By implementing this solution, the interest income from core deposits is increased and stabilised on the long-term, thus allowing banks to implement an active and competitive interest rate policy. Secondary conditions such as an increase in liquidity reserves, risk limitations and transaction costs can be taken into account. The risk profiles of investment alternatives can be quantified and compared. Therefore, the consequences of investment decisions made can be estimated in advance and documented in a reproducible manner.
Based on the current market situation, the FlexFinance Margin Optimiser generates numerous scenarios on the possible development of market interest rates, customer interest rates and deposits over a time horizon of several years. The FlexFinance Margin Optimiser determines the optimum investment strategy for all possible developments by analysing these representative scenarios.
