A multi-national investment bank wanted an enterprise view of financial resources and risks so they could both monitor and improve the allocation of these resources in real-time as well as rapidly respond to market opportunities and threats. Their existing system was comprised of disparate spreadsheets for each desk and risk discipline with manual assembly for management.
Requirements for a new solution:
- A global view of risk across business lines, product lines, geographies and system silos.
- Ability to aggregate risk measures on demand in a quick, iterative cycle to replace a static process that could only aggregate these measures using pre-defined metrics.
- Dynamically interact with data, including the ability to drill down to transaction level detail across all data with fast response time.
- Create complex ad-hoc aggregations and reports at the user level, across the global data set.
- Incorporate custom calculations and real-time updates with powerful visualization for in-depth analyses.
- Perform “what-if” stress testing across the global data set, with the ability to collaborate with other users.
- Secure access to data fields based on user profiles (i.e., Chinese Walls).
- A flexible, open architecture that allowed custom interactions and the ability to meet future, but currently undefined, requirements.
- An “as soon as possible” implementation-to-results timeframe.
The Decision Process
The investment bank performed a Proof of Concept (PoC) with Armanta and several off-the-shelf packages. After a three week PoC, the bank chose Armanta. Facts that supported this decision:
- Internal Development: The internal resources required for development, maintenance and support over time was deemed excessive and the time required to develop was estimated in years, not sufficient to meet the business needs.
- Packaged Application: The off-the-shelf packaged applications they considered lacked flexibility—they were too rigid to enable customized business behaviors and lacked long-term scalability; required pre-definition and pre-aggregation of data–causing the loss of fidelity into the granular level of detail and delayed responsiveness; could not work with large sets of data and complex aggregations dynamically.
- Armanta: Armanta proved to have the flexibility and customizability of an in-house built solution and an ROI and speed of delivery that was in line with an off-the-shelf package.
Why Armanta Was Selected
Armanta enabled the bank to:
- Understand their risk throughout the enterprise–across all products and every geography, to better allocate financial resources, and make rapid, informed decisions.
- Deployed a highly customized, enterprise-level risk dashboard in two months, with:
- Timely delivery of a customized solution that met specific, highly-complex business requirements.
- Greatly reduced time-to-market, implementation risk, cost for initial deployment and future maintenance.
- Enterprise class implementation including high resiliency, scalability and the flexibility to handle high volumes and growth and change in the future.
- The ability to incorporate and manage existing and future regulatory metrics.
- Feature rich capabilities enabling rich visualization of complex analyses across the full scope of on-premise and cloud-based data.
Meeting the Customer’s Requirements
|What the Customer Wanted||What Armanta Delivered|
Replace disparate desktop tools such as Excel and Access with a single, real-time massively scalable enterprise analytical system.
|Robust, high-performance, enterprise-class visualization capability with the flexibility and interactivity of a spreadsheet environment.|
|Conduct complex aggregations of data dynamically.||
The customer can define rich, customized aggregations to meet the most complex business needs.
|Represent data in its most granular form.||Armanta’s grid capability means that the data can always be represented without any pre-aggregation.|
|Robust performance, scale and volume of current and growing business.||Because of the grid nature of the Armanta architecture, the environment can scale as business needs dictate by simply adding more hardware.|
|Access and manage data from a variety of databases and systems – accounting, analytic, vendor-supplied, real-time, spreadsheets, files etc.||Armanta integrates with the existing data in its present locations, so integration of current and future information is extremely quick.|
|Provide users with an intuitive self-service solution.||Armanta views can be created via a point and click interface, empowering users to create highly custom solutions.|
|Incorporate calculations from simple arithmetic calculations to complex models including, risk models, valuation models, etc.||Armanta enables simple incorporation of embedded and external calculations within the massively parallel grid. In addition, all dependencies between data and calculations are managed automatically.|
|Give users the flexibility to alter calculations or models on-the-fly.||Capability to parameterize calculations which enables users to have great influence on how individual calculations are performed.
|Secure access to certain data stores based on user profiles, (i.e., Chinese Walls).||Within Armanta, the representation of information is customer-defined. Complex data relationships are easily handled.|
|Provide what-if capabilities to understand the impact of proposed changes, i.e. margin limits, market rates, etc.||Armanta’s Sandbox™ capability enables what-if analysis out-of-the-box that can be private or collaborative among users.|
|Provide ability to handle all financial products including complex derivative instruments.||As with the data model, Armanta makes no assumptions about the behavior of financial instruments. As a result, the desired, specific behaviors can be defined by the customer.|
|Enable all defined and ad-hoc views as well “what-if analysis” across the global data set – potentially terabytes to petabytes of data.||Armanta was specifically designed to handle large volumes of data dynamically.|
|Deliver a sophisticated user-interface that will support pre-defined capabilities and also allow the end-user to perform ad-hoc analyses with point-and-click simplicity.||A user-interface that provides a rich set of business intelligence capabilities allowing the user to navigate and visualize complex data. In addition, users can interact with the information much like a spreadsheet.|