Retail Banking

Industry consolidation, customized customer services, regulatory compliance (BASEL II, Patriot Act, Gramm-Leach-Bliley) and the need for transparency (Sarbanes-Oxley) are adding complexity to the data management process, while providing opportunities to get a head start on the competition. The pressure to enhance reporting and make faster, smarter business decisions can also provide greater growth and profitability opportunities as competitors struggle to keep up. Clarity 6 will help organizations make smarter, more informed decisions to increase and maintain the competitive advantage for any retail bank.

Clarity 6 has been implemented at leading banks such as Wells Fargo Bank and CIBC.

Clarity 6 provides all of the functionality necessary for retail banks to address their key areas of concern:

• Funds transfer pricing
• Multiple rate scenarios
• Roll/on and roll/off balance sheets
• Product, customer and line of business profitability
• Branch profitability
• Determining RAROC
• Driver based cost allocations
• Compliance reporting
• Risk management

Funds Transfer Pricing
Clarity 6 fully supports funds transfer pricing (FTP). FTP assesses the financial impact of a bank's sources and uses of funds. Results of the FTP process can be used to evaluate the profitability of products and customers.

Multiple Rate Scenarios
Clarity 6 can model multiple rate scenarios for FTP and yield. This functionality allows the bank to assess its exposure to rate changes.

Roll/on and Roll/off Balance Sheets
Clarity 6 gives banks the facility to forecast and plan balances using roll/on and roll/off balance sheets. The flexibility in Clarity 6 lets you incorporate any number of roll/on and roll/off factors to derive the ending balance.

Product, Customer and Line of Business Profitability
Clarity 6’s ability to slice and dice data allows you to view and analyze profitability by product, customer and business unit. For example, our product profitability report shows risk adjusted net income, risk adjusted return on capital, efficiency ratio, average balance, net interest income, allocated risk and asset based costing.

Branch Profitability
Clarity 6 can analyze the cost and benefit of the services provided by each branch giving the bank insight into how each branch is performing, what products and services each branch is providing and the customer mix.

Determining RAROC
Clarity 6 can determine RAROC or risk-adjusted return on capital by incorporating operational, credit and market risk.

Driver Based Cost Allocations
Clarity 6 gives you the ability to allocate costs based on the appropriate drivers. The allocation process can be based on any number of drivers including operational metrics, customer behavior metrics, or fixed allocation percentages. Both single step and multi-step allocation processes are also supported.

Compliance Reporting
Clarity 6’s comprehensive audit trail and validation routines allow the bank to ensure that it is in compliance with Basel II, Sarbanes-Oxley and other regulations.

Risk Management
Clarity 6’s credit risk templates can analyze and report your credit risk exposure, accepting information from all underlying systems. The templates can monitor exposure and give early warning to decision makers.

Clarity 6’s operational risk templates track operational risk exposure such as foreign exchange, inflation, interest rate and hedging risks by line of business and geography. Our modeling capability allows you to match risk with your capital requirements.