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Armanta Names Top Five IT Moves Financial Institutions Must Make in 2010
| Source: Armanta
MORRISTOWN, NJ--(Marketwire - January 6, 2010) - Armanta,
Inc., a software platform that enables financial institutions to build
customized decision support applications for solving complex business
problems, today named its top five actions financial institutions
must take in 2010 to improve transparency, reduce operational risk and
thrive in uncertain markets. Armanta's "Top Five" addresses the ability for
firms to react quickly to market changes, by enabling deeper insight into
firm exposures and cross-departmental activities.
"The financial crisis revealed that many, if not all, major financial
institutions have patchwork infrastructures
that make it extremely difficult to understand the firm's market and
counterparty exposures. The crisis may be over, but the data
integration problems are fundamental," said Peter J. Chirlian, Armanta
Chief Executive Officer. "Armanta's Top Five suggests positive operational
changes firms should make to highlight their exposures across business
units, improve their market reaction times, and simplify reporting for
investors and regulators."
#1 -- Come to Terms with Your Firm's Patchwork Infrastructure
Although financial institutions spend billions annually on IT, one area
that has been consistently neglected is cross-departmental integration -- a
fact that makes it extremely difficult for firms to accurately assess their
firm-wide exposures in a crisis. Institutions have tried unsuccessfully to
integrate silos of information in separate business units, and instead have
been left with a patchwork infrastructure of mainframes, databases,
software applications and hardware. In 2010, firms need to look at
solutions that will bridge the divide and produce data that is accurate and
meaningful.
#2 -- Reduce Your Firm's Systemic IT Risk
Patchwork infrastructures produce questionable, and sometimes unreliable,
data. This can cause a domino effect of bad decisions throughout an
organization, which can have devastating systemic shocks not only for the
firm, but also for the economy. The key is integration, but firm-wide
integration projects are often overwhelming, expensive to undertake in
house, and doomed to fail. In the coming year, organizations should seek
flexible technology that both integrates and provides decision-support
tools, to ensure the information that decision makers are receiving
provides an accurate picture of the firm's exposures.
#3 -- Create Integrated Systems for New Products
A fast-moving and responsive financial firm can develop thousands of new
products in a short period of time. The mistake many firms make is in
allowing business units to develop spreadsheet-based systems to manage
those products. In an already fragmented IT organization, spreadsheets that
sit on people's desktops are difficult to integrate: This is dangerous
because particularly complex products can carry risks that don't get
figured into the organization's firm-wide view of its exposures. In 2010,
organizations should commit to ensuring that the technology used to support
new products is both flexible enough to foster real innovation as well as
robust enough to ensure appropriate transparency within the organization.
#4 -- Mandate Executive-Level Dashboards for Key Decision Makers
Decision makers need tools that enable them to harness key information and
analytical tools in a timely, accurate, and business-spanning manner. The
impact of poor integration can diminish market reaction times, and make it
impossible to create meaningful 'what-if' scenarios. In the coming year,
financial institutions should seek out solutions that provide both
integration -- to improve data quality -- and executive-level dashboards to
facilitate incisive decision making and improved market reactions, in a
crisis as well as on a daily basis. Businesses will need to prove to both
commercial and governmental bodies that they have IT solutions deployed
that are robust enough to manage complex risks and flexible enough to be
extended as innovation occurs.
#5 -- Improve the Quality and Delivery of Client Reporting
Existing client reporting mechanisms have been engineered to meet the
lowest acceptable standard; this has saved firms money and enabled them to
operate with a minimum of transparency. However, clients have grown tired
of operating in the dark and are putting increasing pressure on brokers and
asset managers to provide greater transparency. Firms that can give their
clients genuine transparency will improve their competitiveness; those that
don't will lose market share. In 2010 and beyond, firms need to radically
shift their approach to client reporting, providing clients with dynamic
tools that enable true data mining as well as analytical capabilities.
About Armanta
Armanta is a state-of-the-art software platform that enables financial
institutions to build customized decision support applications for solving
complex business problems. The platform integrates all the required
technology components for these applications into one unparalleled product
that works across the front- to back-office. Armanta was founded in 2001
by experienced financial services and technology experts who worked with
some of the most complex products and processes in financial services. The
software platform they developed enables top asset management firms, large
multi-strategy hedge funds, prime brokers, investment banks, and pension
funds to build applications and solve problems in areas such as portfolio
management, trading, compliance, credit risk and market risk. For more
information about Armanta visit www.armanta.com.