Success stories in the financial services sector

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Innovative Regulatory Reporting Solution for Capital Adequacy in Credit Risk

fink. collaborates with the client to develop a modern solution for RWA (Risk-Weighted Assets) calculation and COREP (Common Reporting) reporting based on internal models
and standard approaches in credit risk.

#Basel4 #IRBA #CreditRisk #RegulatoryReporting

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End-to-End Implementation of Basel IV Requirements in RWA Calculation

fink. designs and develops the implementation of CRR III changes in RWA calculation from data provision to result data.

#Basel4 #IRBA #CreditRisk #InHouseDevelopment

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Introduction of Internal Ratings Based Approaches (IRBA) for Bank Credit Risk Measurement

fink. analyses the optimization of capital requirements through the introduction of IRBA according to CRR III requirements and conducts the implementation project.

#Basel4 #CreditRisk #IRBA #CapitalOptimization

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Data Lineage: Transparency and Optimization for Bank Management Architecture Renewal

fink. models and analyzes data lineage for steering KPIs, using standard software.

#DataLineage #BCBS239 #BankManagement

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Cloud-Based Data Analytics Platform
for Bank Management

fink. collaborates with the client to develop the new CFO/CRO integration platform based on a Data Lakehouse architecture.

#DataLakehouse #BankManagementPlatform #Cloud

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Process and Method Optimization in Data Management

fink. assists the client in interpreting supervisory RDARR specifications and integrating them into the architecture.

#DataManagement #BCBS239 #DataQuality #DataGovernance #DataOwnership

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Innovative Regulatory Reporting Solution for Capital Adequacy in Credit Risk

fink. collaborates with the client to develop a modern solution for RWA (Risk-Weighted Assets) calculation and COREP (Common Reporting) reporting based on internal models and standard approaches in credit risk.
#Basel4 #IRBA #CreditRisk #RegulatoryReporting
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Andreas_Küspert_fink

Andreas Küspert
Phone: +49 172 2677775
e-mail

Context

The capital adequacy in credit risk of banks, as a central component for regulatory reporting and bank management, is being restructured at our client in the form of an innovative solution. Regulatory requirements under Basel IV form the basis for data modelling, data provision, calculation algorithms and reporting.

Project Results

  • Establishment of the new COREP architecture including modularization of processing and adjustment of input interface

  • Functional and technical implementation of parallelized COREP processing based on internal rating-based approaches and the standard approach

  • Development of reports and queries for the functional analysis of the calculated results

  • Preparation of comprehensive documentation of the new architecture covering all processing processes

Success Factors

  • Detailed specification of functional processing processes

  • Close integration of functional and technical expertise in project teams

  • Early review of functional specifications by technical developers

  • Realistic release planning with clearly defined contents and milestones

End-to-End Implementation of Basel IV Requirements in RWA Calculation

fink. fink. designs and develops the implementation of CRR III changes in RWA calculation from data provision to result data.
#Basel4 #IRBA #CreditRisk #InHouseDevelopment
Contact us

Andreas Heese
Phone: +49 172 6505698
e-mail

Context

Regulatory provisions under Basel IV entail substantial changes in RWA calculation for credit risk in banks. The new requirements for the standard approach and changes to internal rating-based approaches were implemented in a new RWA calculation framework, covering all phases of an implementation project from analysis, conception and implementation to technical and functional testing.

Project Results

  • Development of the new architecture for RWA calculation in the new standard approach for credit risk and the two internal rating-based approaches

  • Functional and technical implementation of data input interface, calculation algorithms and result data

  • Optimization of RWA calculation through parameterization of calculation algorithms

  • Preparation of comprehensive documentation for individual processing processes

Success Factors

  • Deep functional understanding of bank products and RWA calculation in credit risk according to CRR III requirements

  • Detailed conception of data provision for bank portfolios – availability, granularity and quality

  • Early definition of functional and technical architecture

  • Modularized processing process implementation in the form of sprints


Introduction of Internal Ratings Based Approaches (IRBA) for Bank Credit Risk Measurement

fink. analyses the optimization of capital requirements through the introduction of IRBA according to CRR III requirements and conducts the implementation project.
#Basel4 #CreditRisk #IRBA #CapitalOptimization
Contact us

Dr. Przemyslaw Noetzel
Phone: +49 172 6882482
e-mail

Context

Internal rating-based approaches to credit risk measurement are becoming less attractive due to the limitation of capital savings in CRR III (the so-called Output Floor). However, the possibility for individual bank portfolios to apply these approaches presents a lower hurdle for adoption. At our client, we quantify the capital adequacy under the new standard approach and internal rating-based approaches, and design a potential implementation project with changes in governance, processes, methods and data.

Project Results

  • Quantification of capital adequacy under the new credit risk standard approach and the two internal rating approaches

  • Gap analysis for the introduction of internal rating-based approaches with necessary adjustments in governance, processes, methods and data

  • Development of a business case with qualitative and quantitative aspects of introducing internal rating-based approaches

  • Design of the implementation project with task descriptions, project planning and capacity planning

Success Factors

  • Comprehensive knowledge for optimizing capital adequacy in credit risk according to CRR III requirements

  • Functional understanding of processes, methods and data in credit risk control and reporting

  • Thorough consideration of results from the gap analysis in the business case

  • Realistic planning of the implementation project based on concrete task descriptions

Cloud-Based Data Analytics Platform for Bank Management

fink. collaborates with the client to develop the new CFO/CRO integration platform based on a Data Lakehouse architecture.
#DataLakehouse #BankManagementPlatform #Cloud
Contact us

Alexander Kawelke
Phone: +49 162 2989593
e-mail

Context

Business model changes necessitate a modern, cost-effective architecture. Bank steering units benefit from quality-assured and seamless data integration, as well as expanded and flexible reporting and analytics capabilities.

Project Results

  • Analysis of business requirements and implementation of a central banking steering data model at individual contract level

  • Design and implementation of interfaces for connecting source and recipient systems, as well as calculation engines

  • Establishment of data quality management, as well as data lifecycle management (e.g., versioning, historization, etc.)

  • Establishment of the operating model for data management and operational processes

  • Conducting user training and supporting operational teams

Success Factors

  • An experienced team in building data integration platforms responds professionally and agilely to project requirements

  • IT-oriented specification of business requirements to minimize translation efforts

  • Early detection of dependencies in business architecture and examination of release cycles to develop agile development strategies for the target architecture

  • Decomposition of business logic into consistent and reusable building blocks promotes, among other things, redundancy-free implementation, performance optimization, and dynamic and traceable documentation

  • Early definition of DQ methods and processes, as well as their integration into the overall architecture

Data Lineage: Transparency and Optimization for Bank Management Architecture Renewal

fink. models and analyzes data lineage for steering KPIs, using standard software.
#DataLineage #BCBS239 #BankManagement
Contact us

Christian Gebauer
Phone: +49 176 10391603
e-mail

Context

The Data Lineage, in conjunction with a Business Glossary, creates transparency regarding the complexity of data flows within the bank’s steering architecture. The goal is not only to fulfill regulatory requirements but also to optimize architecture and processes and to ensure sustainable functional documentation within the Change-the-Bank process.

Project Results

  • Harmonization of attribute definitions from all utilized systems into a Business Glossary.

  • Data analysis for relevant steering KPIs, followed by the creation and visualization of multi-layered Data Lineages (system level, business data processing and technical data flow).

  • Linking of business and technical Lineages.

  • Parameterization and customization of the metadata management tool regarding GUI and workflows.

  • Development of training concepts and implementation of user training sessions.

Success Factors

  • Early development of a vision for the purposes of Data Lineage deployment to avoid additional efforts.

  • Involvement of use cases from the business areas during the establishment of Data Lineage facilitates acceptance of the new solution within the organization.

  • Determine the level of detail of the transformations depicted in the Lineage in collaboration with the business area.

  • Early rollout of maintenance processes to ensure smooth data integration.

  • Close collaboration with the software provider for release-ready parameterizations and adjustments.

Process and Method Optimization in Data Management

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fink. assists the client in interpreting supervisory RDARR specifications and integrating them into the architecture.
#DataManagement #BCBS239 #DataQuality #DataGovernance #DataOwnership

Roderick Unterschemmann
Phone: +49 162 2913493
e-mail

Context

The ECB Guide on RDARR specifies regulatory expectations within the framework of BCBS 239. The focus is on a long-term strategy to enhance RDARR capabilities, creating tangible benefits for the bank and optimizing regulatory costs.

Project Results

  • Review of the Data Governance Framework for compliance with the ‘ECB Guide on RDARR’ and its current application concerning data quality and data ownership

  • Design of a comprehensive data quality solution for integration into the new cloud-based architecture for bank management

  • Prototypical implementation using representative control metrics for end-to-end data quality control and establishing an automated issue handling process

  • Assignment of data ownership to the bank’s data entities and operationalization and training of employees in the new processes

  • Integration of central requirements management into the bank’s change processes

Success Factors

  • Business model-specific benchmarking facilitates targeted interpretation of regulatory specifications

  • Business and technical expertise of the target architecture are crucial for designing data management methods

  • Effective governance structures are a cornerstone for continuously and sustainably improving data quality

  • Data quality and lineage are not regulatory ends in themselves but fundamental prerequisites for efficient bank management

  • Implementation of regulatory requirements should aim to create tangible benefits for the bank, considering the scope for design flexibility

Are you still looking for a solution?

If you have any questions about our success stories or if your company is currently facing a challenge, our team will be happy to help.

fink. is part of the X1F Group

X1F offers technology and transformation consulting from a single source, supporting banks, insurance companies, industry and the public sector in the digital transformation with a full service offering. Under its umbrella, X1F bundles specialized, innovative and complementary services for business process and management consulting, platform integration, data analysis, artificial intelligence, security, identity & access management as well as cloud architecture and IT infrastructure.