To address these challenges, Oracle today launched new cloud-native services that can help banks strengthen their finance and risk management processes to reflect their target risk appetite and limit exposure.

The four new services provide banks with highly scalable profitability management and customer analytics, funds transfer pricing, asset liability management, and cashflow forecasting. With these solutions, firms can get better insight into how threats, including changes in interest rates, liquidity, customer behavior, and market rate volatility can impact their business. With this intelligence, they can make more effective, data-driven decisions based on early warning signals, adjust their risk management strategies to avoid crisis, and continually measure risk-adjusted performance.

“Recent events demonstrate that financial institutions have an opportunity and obligation to better use data to understand and manage risk,” said Sonny Singh, executive vice president and general manager of Oracle Financial Services. “With powerful analytics and AI built-into our new cloud solutions, firms can bolster their risk management, economic stress-testing, and scenario analysis capabilities to mitigate exposure and get ahead of the regulatory response that is likely to come from these banking failures.”

With a microservices architecture, robust APIs, and a single, transparent data layer, the cloud services help banks embrace a component-based approach to modernization based on their individual business requirements. The services can run standalone, work seamlessly together, and coexist with existing applications.

“Financial institutions need to look beyond what’s regulated today to factor in behavioural and market-implied scenarios, to protect themselves - and their customers - from catastrophic risk in the future,” said Sid Dash, Chief Researcher at Chartis Research. “With the right tools and a common data foundation that can handle optionality and the behavioural aspects of their business, firms can develop a much more holistic approach to managing both risk and the regulations to come.”