Finnova Core Suite
The Core Suite ensures the management of master data (consistency, up-to-dateness, clarity), and secure, reliable, high-performance order processing. By nature, the Core Suite is data-centric, requiring high efficiency, processing speed and capacity.
The modular structure of the Core Suite covers all modules, from payment transactions, financing, investment management to client and advisory modules. Accordingly, the master data storage is located in this central suite of the Finnova Banking Software. Here, for example, the client master, card administration, interest rates, fees and charges are integrated. The parameterisable process management guarantees the banks an efficient and individual integration.
The focal point of the Core Suite is the quick and comprehensive processing of all business cases and the unrestricted, role-based access to all data.
Finnova Banking Software
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Finnova Banking Software
The Finnova Payment Transactions (ZV) module is designed for efficiency and automation. It supports standards and procedures established in Switzerland and internationally (incl. SEPA), and the structured and efficient entry and processing of payment orders. As a matter of course, client and interbank payments are supported in the current XML format according to ISO 20022.
As a result of the full integration of electronic channels into the Finnova Payment Transactions module, optimal processing of client payment orders can take place and electronic account statement information can be provided quickly and as needed. Innovative market developments such as peer-to-peer payments or person-to-merchant payments (e.g. Twint or WIR Pay) are seamlessly integrated into the Finnova ZV application via the Finnova Payment Solution Adapter, and offer private or business clients a broad spectrum of payment options. The payment channels for outgoing payments in interbank payment transactions are predefined on the basis of previous transactions and are reusable – it is a 'learning' system. Thus, the Finnova ZV application allows banks to process their bulk business very efficiently and automatically.
If back office employees are required to intervene in the processing, they are supported by smart processes (automatic triggering or processing of returns, enquiries or SWIFT cancellation requests). The banks' requirements of scalable and cost-effective processing of payment transactions are paramount. Depending on the bank's operating model, the Payment Transactions application can either be an integral part of the Finnova Banking Software or it supports the modular connection to a BPO provider.
Payment transaction processes can be adapted to bank-specific requirements. The predefined workflows guarantee the highest level of security and reproducibility. In addition to the manual entry of payment orders, various ZV scanning systems are supported. Orders from the E-Banking application enter directly into the Payment Transactions application without redundant storage. Standing orders are directly entered and managed in the Finnova ZV application. Both the bank and the client can edit standing orders in the E-Banking application.
In order to support banks in the fight against fraud, the originator profile can be checked by clients before the execution of payment orders. In the case of incoming payments, the bank can choose from a extensive set of criteria whether the credit entry should be made immediately or not.
With beneficiary matching, which can be extended to phonetic equality, both the greatest possible security during allocation and a high degree of automation are achieved. Naturally, it is possible to perform a check with regard to politically exposed persons and embargoed countries. Furthermore, payments can be checked in real time using analytical methods (transaction check, connections, pattern identification, (learning) algorithms) with the Finnova Compliance Filter, which is part of the Finnova Analytical Framework.
Processed payment orders are immediately posted, the notifications are created for the clients, and the documents are stored in the electronic archive.
Finnova Services Offering: ZV Quality Check
With the ZV Quality Check of Finnova Services, our consultants screen the parameterisation of the Finnova Banking Software in the Payment Transactions module. We conduct interviews with the users in order to gain insight into their work processes. We create a comprehensive report from these findings, assessing the quality of the parame-terisation and containing optimisation proposals to facilitate the day-to-day work.
The loan system is characterised by a high degree of flexibility when mapping various loan constellations that can be fully processed, from the loan advisory discussion and the opening of the loan order to the posting of capital and interest. The Loan Advisory module enables the entry of all loan products such as loans, overdraft facility, Libor mortgage, lombard loan, fixed advance, cash loan, leasing or contract bond. In principle, financing can take the form of a credit line or an individual loan. In addition, collateral can be assigned, amortisations can be determined, and execution accounts and client-specific conditions (debit interest, credit commissions) can be assigned. Loan transactions are supported by procedural organisation stages and by the periodic processing of interest, amortisations, fixed annuities (for loans, cash loans and leasing) and collateral.
Loan processing and loan management
The loan system includes the master data management of individual loans and credit lines as well as collateral in Swiss francs and foreign currencies. The application manages pledged assets, such as account balances, custody accounts, portfolio collateral, guarantees, insurances and all other collateral. Mortgage collateral is generated and updated from the Real Estate application. All loan-relevant data is displayed in an overview screen with drilldown functionality. The module allows the portfolio status with all loan-relevant data to be printed. The screens for the management of client information (income, assets, liabilities, balance sheet ratios, taxes, debt enforcements, excerpts from the commercial register) as well as client contacts and pending tasks can be directly called. The entire credit management process is supported by the workflow.
With its Limits module, the Finnova Banking Software offers the possibility of managing and administering different limits such as counterparty, nostro, credit or card limits. Changes are updated online and have a direct impact on the calculation of the available balance. Limits can be directly entered and automatically updated via the Loans application. The Limits module enables the definition of simple and complex limits, for example if several accounts show an amount as the initial value. All Finnova applications that provide current balances, like for the account query, take into account the fixed limits in the calculation of the available balance.
The regulation of competences within the bank is governed via the Competences module. This module determines for all other modules which employees are allowed to deal with and/or authorise which business cases up to what amount. With the definition of the competences, it is controlled who receives, further processes or concludes which pending tasks in the workflow.
The Collateral module manages all securities as collateral in the Finnova application, from real estate liens to portfolio, account and custody account balances through to securities and retirement assets. This module also makes it possible to take into account insurance policies, guarantees and other collateral such as unsecured loans.
In addition to comprehensive and detailed master data for real estate and mortgage notes, the Real Estate module allows the connection of digital images. With the Finnova Banking Software, even complex ownership structures can be recorded and all data for the detailed appraisal of a property is provided. Hedonic pricing models are also integrated. The module creates a variety of documents, like appraisal reports for the land register office. These and other documents to be created frequently, such as registration and deregistration in the register of mortgage holders, can be printed by means of a simple mouse click.
In addition to self-occupied property (single family house, multi-family residence, condominium ownership), the Real Estate module also enables the management of other properties such as industrial and commercial properties, hotels, restaurants, sports facilities, etc. Thanks to the versatile connection possibilities, even complex residential developments can be fully mapped, for example, multi-family residences with condominium ownership and co-ownership of the underground car park. The module enables individual levels of detailing: the more precise the data, the more comprehensive the appraisal report. Mortgage notes entered in the system are used as collateral in the Loans application.
Mortgage Bond Bank
As an interface, the Mortgage Bond Bank module enables the digital reporting of pledged properties such as real estate or real estate compounds to the mortgage bond bank. A mortgage bond property is only transmitted if all required fields are filled in completely and the conditions for repledging are met. The corresponding information can be parameterised by the bank according to its needs. The individual data has to be entered in the master applications Real Estate, Loans and Client Master and is transferred into the Mortgage Bond Bank module using the 'Update' function. Data that cannot be maintained in the master applications is updated in the Mortgage Bond Bank module.
The Portfolio Management System (PMS) module integrated into the Core Suite optimally supports activities in discretionary asset management and advisory. In the PMS, allocation structures (trees) adapted to bank-specific client strategies can be determined in any desired depth. These serve as a basis for the various strategies, tactics, benchmarks and model portfolios. Customised investment proposals in advisory and efficient bulk processing in asset management are also offered.
The 'Global Order' functionality enables the periodic restructuring of mandates in a very efficient manner. Both dynamic and static investment models can be implemented. A global restructuring can take place, dependently or independently of model portfolios, for all investments in the portfolio, for individual segments or only for individual securities. Using the 'Cash Management' function, cash holdings for mandates can be managed separately from global restructuring processes. A seamless transition of the generated stock exchange and foreign exchange orders for execution into the downstream modules is guaranteed. Bank- and client-specific investment guidelines and preferences can be easily maintained via the 'Investment restrictions' function and monitored in the pre-trade restriction check for an individual investment proposal, or within a bulk restructuring in asset management. The periodic post-trade check of investment restrictions in investment controlling is efficiently supported by checklists. Violations are directly reported to the mailbox of the user responsible for further processing.
Comprehensive configurable ad hoc analyses for asset allocation, asset development, performance calculation (TWR, MWR, before/after taxes/fees, etc.) and performance attribution facilitate the day-to-day business of client advisors, asset managers and portfolio controlling. A variety of key figures (Sharpe ratio, Treynor ratio, Jensen's alpha, information ratio, VaR, volatility, PRC, etc.) are available for risk monitoring. The modular structure of the reporting enables the compilation and preparation of a targeted investment reporting, which allows not only the inclusion of ex-custody portfolios, but also a consolidation across all clients.
Furthermore, the PMS includes the configuration, management and calculation of composites according to the specifications of the Global Investment Performance Standards (GIPS). The periodic certification check is supported with detailed control reports.
The Stock Exchange module controls the order workflow, from the creation to trading through to processing and posting. The orders can be entered as individual or list orders. Further order sources are E-Banking, Global Order, Corporate Actions, CSV import as well as an interface to third-party systems. Comprehensive check functions ensure compliance with regulatory requirements. The presence and validity of any contracts can be checked bank-specifically. All warnings from the checks are historized, as are the person and time of overrides. Orders from various sources (e.g. E-Banking) can be treated differently in the process.
The flexible implementation of the FIX interface allows for a complete STP connection to any brokers, routing networks, or external trading platforms. Execution messages can also optionally be sent via SWIFT. Communication takes place in real time. Adjustments to the order data of the trade overview are updated and highlighted in the overview without a time delay by means of a messaging system.
For specific stock exchanges, the orders can be processed semi-automatically or manually. For this purpose, the trader interface offers profile support, reservation mechanisms and tools to compensate for opposing client orders. Here, the pooling functionality takes into account the individual cut-off times for funds. The interfaces to the following modules ensure fully automated processing within the Finnova application: Communication System, Workflow, Competences, Limits, Foreign Exchange, Settlement and Registered Shares. The scheduling and blocking of securities positions as well as the printing of the settlement and the posting take place in real time.
Pending deliveries from stock exchange orders and orders from the Securities Accounting application such as incoming/outgoing deliveries and securities transfers are processed by the Finnova system as a straight-through process in the settlement. In doing so, the module determines the respective custodians and creates pending deliveries for the corresponding instructions according to SWIFT or SECOM. The instructions are automatically sent and the current status of the settlement process is clearly displayed on the pending delivery. The automatic posting by the system takes place after the confirmed settlement.
With Corporate Actions, it is possible to replicate cash and securities flows of complex financial instruments in a modular system. The corresponding components from the areas of securities, cash, taxes and commissions are available for this purpose. Here, the calculation, treatment of fractions and assignment (drawing) comply with the standards of international financial centres. All calculations and postings take place in real time. Rounding differences arising from these calculations are automatically identified by the module when an event has been completed, and are transferred up to a minimum limit from the transitory account to the profit and loss account.
The Corporate Actions module is workflow-based and has an integrated interface to the Foreign Exchange, Tax Statement and PMS modules. The events can be imported via VDF or WM data feed or entered manually. The paying agent's SWIFT messages (MT566) are reconciled and can trigger automated processing of client portfolios on the basis of rules.
The printing options allow for a comprehensive control of dispatching, attachments and archiving. The text templates pre-defined for the individual business cases can be freely adjusted for each individual transaction, and also comprise multi-page texts for pre-notifications, replies and settlements. Thanks to these properties, all events can be mapped, from dividends to invitations and general assemblies through to splits and mergers.
The module automatically registers and takes into account standing instructions of clients with regard to selection events (optional dividend, capital increase, invitation to the general assembly, etc.). Restrictions can be individually defined per event. Blocked custody account positions are identified and the required actions are automatically triggered. Client advisors are automatically informed about new settlements or selection events of their clients.
Various selection options regarding holdings, stock exchange transactions, countries of residence at a certain point in time, also retrospectively, and nationality are available for class actions. With this, an authorisation for participation in a class action can be displayed to the client in detail and with indication of the relevant stock exchange transactions.
Specific screens for the service centre allow for processing of events across all tenants.
The Securities Master module contains comprehensive securities data as well as listings, price data, international identification numbers and symbols, tax data, ratings and MiFID data. In addition, it offers the possibility of entering structures and relationships that are required, for example, for the securities composition of an index or basket.
For the opening of a security, entry of a valid identifier is all that is needed to start the automated process. Within a few minutes, all data of the desired security can be obtained from the provider and supplemented on the basis of rules. SIX Group is the data provider for master data and securities prices. Specific data, e.g. funds breakdown, PRC code or blacklist, can be supplemented with data from other sources.
Multi-tenant capability enables industrial data maintenance by a BPO provider. This can include any tenants within a tower or even several multi-tenant towers. The authorisation matrix controls the distribution of fee-based data at instrument or data segment level.
Some fields can be overwritten at various levels. For example, the risk securities type can be defined globally, per multi-tenant tower, per tenant, and, within the bank, even per management area. This enables the highest degree of individuality with maximum industrialisation.
The client position is automatically assigned when options are exercised by the counterparty. The underlying security is also automatically blocked when writing a call option. The system calculates and ensures the initial margin in the same way as it calculates and posts the variation margin. In the case of undercollateralisation, the workflow initiates and controls the alerting and escalation.
The BPO functionalities include a securities master across multi-tenant towers, and corporate actions. Centrally processed instruments and results can be processed locally and fully automatically on an individualised basis. Within a multi-tenant tower, cross-tenant functions are available for stock exchange, corporate actions, settlement and registered shares.
Clients & Products
All product-specific and client-specific data and functions for the Client Master, Card Administration, Limits, Fees and Account Balancing modules in particular, are fully integrated into the Core Suite. These functions provide the core of the master data management, the 'golden record' of a core banking system.
The parameterisable process management guarantees the banks an efficient and individual integration.
The Client Master module stores a wide range of client data. This includes information about persons, addresses, communication tools, details of the client relationship, the relationship between client master records or the financial situation of the client. As a special feature, the functionality of the module can be extended bank-specifically with additional fields. Advisors have the possibility of performing a filtered search for clients according to various criteria in the system and thus of managing them along the lines of their current task.
Finnova Services Offering: Client master standardisation
In times of digitalisation and cost pressure, industrialisation of the banking business is becoming increasingly important, along with standardisation and automation of processes and outsourcing of sub-processes. The standardisation of formats and data as part of the client master standardisation is a prerequisite for this. With the 'Finnova Data Management' service package of Finnova Services, we support banks in implementing the multi-layered requirements of the client master standardisation. Together with the customer, a tailor-made concept for data analysis within the customer's own client master data is developed as preparation, and possible enrichment and migration scenarios are checked. A detailed plan enables targeted implementation of the identified measures for improving data quality, thereby forming the basis for a successful implementation of the client master standardisation.
Portfolio Balance Overview
The Portfolio Balance Overview module is able to create and edit many of a client's account products. A client may have a number of accounts or custody accounts combined within one or more groups (portfolios).
The Anti-Money Laundering module fulfils all requirements in relation to the client master concerning the anti-money laundering ordi-nance.
Different card types of a client can be managed, i.e. generated and processed, with the Card Administration module. A client can have several cards with different limits, either as holder or as an authorised person. With the multi-account function, cards can be assigned to multiple accounts. The module comprises all business processes concerning cards, such as new orders, adjustments, geoblocking, ordering of replacement cards, card blocking, PIN reordering, complete renewal, and determining the field of application per account.
The Limits module is provided for the real-time monitoring of external limits (client's limits) and internal limits (nostro limits) and monitors limits from the bank's perspective. The focus is on the following business events:
- Definition of limits
- Determination of withdrawal options
- Management of amount notices
Tariffs is a central module in the Finnova Banking Software and provides significant support for the modelling of bank products, i.e. tariffs, for very varied price components. The tariff scheme is applied for transaction-dependent and non-transaction-dependent transactions, such as for stock exchange transactions, for creation of the account balancing and when using other fees.
Services which are not transaction-oriented are calculated and charged in the Fees module. The Fees module covers a variety of fee types. The fees incurred are generally calculated by a batch process triggered periodically. The user then has the possibility of checking the calculated fees and making corrections, if necessary. Calculations can be performed for one or more time periods. Fees are then cumulated and ultimately charged. The user can view the fees incurred in the system at any time, and select the level of detail. The fees list includes, for example:
- Card fee
- Package fee
- Credit fee
- All-in-one fee
- Retrocession fee
- Custody account fee
- Chargeable withdrawals
- Document fee
The Account Balancing module calculates and posts debit or credit interest accrued as well as any charges which are incurred on an ongoing basis but only debited periodically. Account balancing can be triggered periodically in a batch operation or manually (online). Several balancing types are available for this. Among other things, in addition to a real balancing, a balancing for information purposes can be created. The documents 'Account statement', 'Statement of interest and principal' and 'Record of fees' can be generated with this module.
Customer Relationship Management
The CRM module in the Core Suite provides advisors with comprehensive information and tools that define which products are tailored to the specific prerequisites and needs of a client. These parameters can be determined in detail and individually, which enables the establishment of a product, advisory and sales process that is tailored to the client's needs. Various structured evaluations of the client profile and portfolio make it possible to ascertain which bank-internal products suit a client best. It is also possible to evaluate the sales potential of a certain product and to implement a sales campaign based on this.
The CRM module regulates the management of pending tasks and notes; it contains the client history and coordinates the client process with figures, data and facts. Thanks to a frequency of contact that can be individually determined, each client is regularly supported according to his or her needs. The module allows banks to implement care standards, which makes it easier to form individual, sustainable client relationships. In the future, the Advisor Workbench (part of the Client Engagement Suite) will support advisors with their day-to-day tasks, with a significant proportion of functionalities coming from the area Clients & Products.
Finnova offers a comprehensive and integrated tax solution. Generally, there are two types of tax reporting: regulatory tax reporting, i.e. tax data that banks must deliver to the authorities in the context of regulatory reporting requirements, for example, on the basis of agreements such as FATCA and AEOI, and individual tax statements, i.e. tax statements for clients.
Banks have many obligations to comply with regulatory tax reporting. A fully integrated solution is provided in the context of the automatic exchange of information (AEOI) and FATCA. The respective indicia search run, the classification of bank clients in terms of reporting requirements, and the creation of the consolidated reporting file for the tax authorities are part of this in-house development. Reporting can take place on an aggregate basis at account or client level. A correction mechanism exists for reporting to the FTA. The tax identification number (TIN) process enables audit-compliant documentation for unsuccessful obtainment of the TIN as well as annual pending task creation for repeat efforts to obtain information. Process control takes place via user-friendly input screens (GUIs).
Tax statements for clients in accordance with Swiss law are created directly from the Core Suite with all necessary data. For the purpose of flexibility, there is a separate data warehouse. It is possible to modify tax-relevant information and to enter rates and additional transactions. The Finnova application creates, prints and archives tax statements. Tax statements are made available online for e-banking clients. If desired, key figures for the calculation of settlement fees can be made available to bank clients.
From early 2019, an option will be available, offering bank clients Swiss tax statements that can be processed electronically. Electronically readable PDF417 barcodes provide banks with partially automated processing without media discontinuity (creation), from the clients (tax return) to the tax authorities (assessment).
German bank clients are provided with a functionality for creating the tax statement in accordance with German tax legislation in the Finnova system up to and including the 2017 assessment period. For the 2018 assessment period, or as of 01.01.2019, it is possible to obtain tax statements for Germany – and other countries if desired – from third-party providers. Finnova prepares consistent, high-quality data and makes it available to third-party providers for the generation of tax statements for the countries offered. In order to protect sensitive client data, address enrichment, printing, calculation of fees, dispatch, and archiving of the tax statement take place in the Finnova Banking Software.
The 'Tax profile overview' screen consolidates all tax-relevant topics of the bank clients. Compliance managers or client advisors can thus see at a glance which reporting obligations exist for their clients or which tax statements are generated for them.