asset allocation strategies,’ said Andy Aziz, Algorithmics’ EVP of risk solutions. Aziz added that the bank (and an increasing number of others like it) had opted for the managed service to allow it to have the same level of customisation and portfolio modelling that a traditional in-house deployment would give, but with the ‘heavy’ business intelligence and computational work done off site. A ‘one size fits all’ ASP model was deemed unsuitable for Banca Esperia. It was dedicated to the management of complex personal and family wealth and part of its strategy was in strong portfolio diversification for its clients, said Aziz. For this reason it was seeking a solution to cover a wide range of asset types, and their underlying risk factors, that ‘wouldn’t normally come out of the box’. Algorithmics also provided a hosted risk management
solution to BlueCrest Capital Management, a hedge fund based in London, in 2008. The contract had been signed a few months earlier, following a three month selection process. According to Aziz, the firm competed with the incumbent vendor for the win. Aziz claimed, ‘I don’t think the incumbent provider enabled BlueCrest to address the wide range of asset classes and functionalities it was looking for’. BlueCrest’s requirement for broad functionality, across many asset classes and including possible additions for future use, was the key criteria for Algorithmics’ success in the selection. Aziz also highlighted that clients are able to customise Algorithmics’
User list Algo Suite
Example customers
ABSA (South Africa) Aegon
Alliance Bank Malaysia Berhad (Malaysia) Allianz Group AmBank
American International Group Anglo Irish Bank Corporation (Ireland) Arab Banking Corporation (Bahrain) Banamex (Mexico) Banca di Roma (Italy) Banca Esperia (Italy) Banca Intesa (Italy) Banca Nazionale Del Lavoro (Italy) Banco Bilbao Vizcaya Argentaria (BBVA) Banco de México Banco Sabadell Bank Austria Bank of America Bank of Ireland Global Markets Bank of Taiwan
Bank of Tokyo-Mitsubishi UFJ Bankgesellschaft Berlin BankInvest (Denmark) Banorte
Banque Centrale Populaire (Morocco) Bayerische Hypo- und Vereinsbank (US) Bayerische Landesbank (Germany) Bital (Mexico) Bloomberg Global BlueCrest Capital Management (UK) BMO Financial Group Brasilian Amerian Merchant Bank (BAMB) BRE Bank (Poland) Caisse Nationale des Caisses d’Epargne (CNCE) Caixa Geral de Depósitos Cannizaro Capital Partners (Hong Kong, UK) CECA CEMEX
China Construction Bank International (China) Commerzbank (Germany, US)
Risk Management Systems & Suppliers Report |
www.ibsintelligence.com 59
hosted solutions, which are specific to each client, rather than having ‘standard ASP offerings’.
At the end of 2008, Algorithmics landed a deal to implement
its software at one of Morocco’s major banks, Banque Centrale Populaire (BCP). The extensive selection process, which lasted over a year, included ‘all large international risk management systems vendors’, said Neil McClurg, senior director of sales for Middle East and Africa region. The list was then narrowed to two vendors, and the shortlist stage consisted of ‘a very, very detailed evaluation’, workshops and demos at departmental and top management levels.
‘The bank did not involve any consultants in the selection, but it was a very professional process,’ noted McClurg. The bank’s objective was to find a solution to consolidate risk management across the board and meet the specific requirements of its various departments as well as the enterprise-wide requirements of the bank. In McClurg’s view, Algorithmics landed the deal ‘because there wasn’t another vendor that could prove the enterprise nature of its solution, rather than just departmental capabilities’. Price was a consideration, he added, ‘but absolutely not a defining factor’ (Algorithmics’ offering was not the cheapest, he thought). The new risk management platform was to cover market and credit risk operations, asset and liability management, Basel II regulatory capital calculation and regulatory reporting.
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