Finnova Management Suite

The Management Suite addresses needs in the area of integrated bank management, such as financial and company accounting, risk management, compliance, legal reporting and data analytics.

The Management Suite is the complete instrument for bank and risk management. It pools analyses and reports and in addition, its functionalities cover the ever increasing compliance requirements in the banking sector. Furthermore, it provides analytical tools for clarifying various use cases.

Finnova Banking Software

Strategic Focus
Digitalisation
Industrialisation, Standardisation
Data, Analytics & Compliance
Ecosystem

Finnova Banking Software

Strategic Focus
Digitalisation
Data, Analytics & Compliance
Industrialisation, Standardisation
Ecosystem

Financial Accounting & Controlling

Postings from the business case modules – such as Loans, Payment Transactions and Stock Exchange – are uniformly processed and managed via the centrally available Accounting System application. Postings can also be imported into the Finnova software via interfaces.

Balance sheets and income statements can be manually adjusted retroactively by creating supplementary entries. These changes are documented to make them auditable. The so-called balance sheet cut-off date defines bank-specifically (per financial accounting location) up until when such postings should be permitted in a previous month.

In principle, the balance sheet and income statement are available online. Day-end processing (DEP) is performed. Of course, multiple balance sheet structures can be used. The accounts and items can be assigned to one or more structures for determining income. The balance sheet and the income statement are based on the RVB 2015 Swiss accounting standards.

In the Accounting module, various evaluations can be triggered automatically using rules entered with recurring events, or on an ad hoc basis. Alongside the ordinary balance sheet and income statement, the most important list types include the turnover and average balance sheet, structuring by domicile or the foreign exchange status. The VAT turnover and input tax journals are also prepared. These can be supplemented with manual corrections if needed.

Via various interfaces, the Finnova Banking Software provides third-party systems for processing jobs in the area of company accounting.

Finnova Services Offering: Finnova Control – Overhead Costs

The Overhead Costs module maps the costs of a bank proportionally. The functionality provides information about where real costs have been incurred and who is responsible for the costs. By means of detailed postings from main and subsidiary ledgers, internal cost allocations and cost apportionment of overhead costs, the bank can distribute the incurred costs over the various organisational units and cost centres. The end result is cost transparency for the bank in the form of a cost distribution sheet and cost type/cost centre accounting.

Finnova Services Offering: Finnova Control – Net Cash Flow

The Net Cash Flow module calculates the inflows and outflows of business volume that are relevant to liquidity, client assets, client receivables and off-balance sheet positions of a bank over a defined period. It provides information about whether the business volume has increased or decreased on both the assets and liabilities side of the balance sheet and where exactly the inflows and outflows occurred. This module not only supports the bank in the fulfilment of regulatory requirements, but also delivers important key figures for strategic management to the bank management. The calculated figures can also be used for targeted personnel management. Finnova Services is developing solutions for the consistent determination of overhead costs and profitability. On this basis, we offer interested banks customised services solutions for effective bank management.

Finnova Services Offering: Finnova Control – Profitability

The Profitability module determines the key figures of the contribution margin accounting required for the statement of a bank's profit or loss at client, product and organisational unit level. On the income side, both income from interest-bearing transactions (including interest margin calculation) and fees and commissions are taken into account. On the expenditure side, the corresponding interest and commission expenditure as well as the incurred costs are taken into account. The Profitability module is the basis of a multi-level contribution margin accounting. Thanks to a high variability in the organisation of key figures while taking into account the individuality of the bank, it can be optimally served with a tailor-made solution. The result the bank obtains is a calculation of client and product profitability and a profit centre accounting.

Risk & Compliance

The extensive risk management and simulation include the elements of Asset & Liability Management (ALM), own securities management and liquidity management, as well as the loan portfolio for an entire bank. Regarding risk control, Finnova currently draws on various third-party solutions via interfaces. The compliance managers are informed promptly, in consolidated and compressed form, about critical processes within the bank, and have the possibility to observe progress in the detection and dissolving of processes that do not conform with compliance, as well as the effectiveness of the elimination and prevention measures taken.

The Finnova Compliance Filter makes it possible to check all incoming and outgoing payments before posting. Client master data can also be assessed and reviewed periodically during the opening and modification processes. This check consists of a comparison of payment participants and client master information with any desired set of blacklists. In addition to this, further rules can be quickly and simply configured using the Finnova Rule Designer. Suspicious financial transactions and client behaviour are analysed and detected, and undesired, high-risk client relationships or money laundering activities are identified and prevented in time by comparing client relationships with entries in embargo, sanction and PEP lists, as well as by means of risk-based profiling, and analyses of behaviour, peer groups and links. Transactions, business relationships or client profiles identified as being suspicious can be forwarded to the money laundering reporting office in the relevant XML format using the integrated MROS reporting function.

The Finnova Analytical Framework also covers the detection and prevention of internal and external misuse and fraud by continuously analysing relevant indicia for their compliance conformity and presenting them in compressed form. The highest possible transparency, traceability and accuracy of the investigations and reports through optimised detection rates and minimised wrong detections are paramount here in order to guarantee smooth compliance processes within the bank. Consolidated and detailed reporting enables the responsible managers to get comprehensive information and to make optimised decisions in real time.

Finnova Services Offering: Finnova Compliance Framework

The ‘Finnova Compliance Framework’ service package of Finnova Services shows where problems lie. Together with the customer, a tailor-made concept for the implementation of cleanup jobs within the customer’s own client master data is developed, and possible enrichment and migration scenarios are checked. Using a detailed plan of measures, the identified optimisation plans can be implemented transparently.

Regulatory Reporting

The Capital Adequacy Ordinance obliges the banks to provide regular reports on equity capital and risk diversification. Until the end of 2017, regulatory requirements for equity capital reporting, risk diversification and market risks were met by ERIKA (from the German for 'equity capital, risk and concentrations application'). As of 01.01.2019, these requirements will be met by the Bearing Point FiRE interface. Selected reports such as the survey on new mortgages (HYPO_B), the survey on loan quality (KREDQ), customer payments (ZAV7) and the current account survey (CABQ/CAGQ) will be offered in the Finnova application. For the creation of statistics for the SNB as well as supervisory, liquidity and interest risk reporting for FINMA, Finnova draws on various third-party solutions via interfaces.

Analytical Framework

Finnova has identified data analytics as one of the strategically important topics for the future of the Finnova Banking Software and relies on the systematic development of a uniform and cross-module analytical framework right across all specialist areas of a modern bank. The focus is on both efficient fulfilment of existing and future regulatory and compliance requirements and optimisation of economic key figures, profit maximisation and cost reduction.

 

Advanced analytical approaches

In this development, Finnova relies on the use of unique and highly precise new-generation algorithms, which go far beyond the popular open source programming environments and ensure optimised and high-quality data processing and modelling results. The complexity of the analytical tasks and challenges is not reduced here, but rather the handling of the sophisticated methods and approaches by means of fully automated processes.

Interdisciplinary banking topics

Fraud detection and prevention, sales optimisation, client profiling and segmentation, dynamic stress tests and simulations, as well as processing of structured and unstructured data are only a few examples of the analytical tasks that are the focus of these developments.

Finnova hot topics

Following successful internal and external proofs of concept in the areas of sales optimisation as well as processing and modelling of external data, Finnova is currently increasingly concentrating on the further development of the areas of fraud detection and prevention as well as analytical CRM. The focus is on topics such as real-time analysis of internal and external data across clients and counterparties, their relationships, behaviour and transactions, as well as identification of new, as yet unknown, suspicious or promising behaviour patterns. As a result, the originally compliance-based term 'know your customer' gains a completely new meaning and develops in the direction of a comprehensive 'understand your customer' approach. The protection of clients, the integrity of the bank, and the optimisation of sales campaigns, client satisfaction and maintaining the client base are all at the heart of this. Important functionalities are already available to our customers for the generation of added value. These functionalities work with the client master for large databases and data streams, making client risk-based profiling and analyses of behaviour possible. Upcoming further developments of the existing basic functionalities focus on possibilities for modelling, particularly in the areas of credit risks and analytical CRM.

The expansion of the Finnova Analytical Framework will extend the possibilities for data analytics based on structured and unstructured data, as well as the knowledge gained from these, in future.

FOCUS ON COMPLIANCE

In an interview with Kilian Bolli, lic. iur., LL.M., attorney and Head of Legal Affairs & Compliance at Schaffhauser Kantonalbank, we discuss the imminent regulatory requirements and the areas of business and organisation concerned, as well as the relevance of cross-border business. We also look at the key issue of cyber security, which is also gaining considerably in importance with increasing digitalisation. (in German)

Finnova Compliance


 

Other articles about compliance:

Compliance 04/17: Interview with Marie-José Bratcov of BCGE and Dominik Witz of Swisscom Banking (in German)