Jan 1, 2015

Numerix Top Five: 2015 Tech Trends & Predictions

Satyam Kancharla, CSOAs we look forward to 2015, Satyam Kancharla, Chief Strategy Officer & SVP of the Numerix Client Solutions Group presents his top five technology trends and predictions for the New Year.

  1)    Real-Time Risk

Institutions require real-time results for fast trading and risk decision-making. The need for greater operational efficiency, and the integration of risk and capital analytics into trading decisions is also critical.

We see the market adopting a more integrated and holistic approach for managing risk, assessing trade profitability and allocating capital to their businesses. This combines real-time performance and a robust IT infrastructure for risk and pre-trade pricing. Through the instant analysis of large volumes of complex and dynamic data, financial and insurance institutions will be able to achieve a timely, more accurate view of risk enterprise-wide.

  2)     Agile Analytics 

Along the analytics continuum standard analytics sits to the left, and predictive analytics sits to the right. We see the notion of agile analytics filling the gap. While real-time and predictive analytics are well defined, agile means consistent, flexible, scalable and responsive. 

  3)    Cloud 

Many people in the front or middle offices of financial institutions view cloud computing as something their IT department deals with and not a technology they could directly use or benefit from. The status quo has changed, and in 2015 we will continue to see cloud technology for risk management being leveraged to dramatically reduce calculation times and provide faster results to facilitate faster decision-making.

We also see a growing trends as far as using mobile devices and tablets for enterprise solutions. New risk systems and banking enterprise systems being deployed need to be ready to run on any device, including web interfaces and must address issues of information security and ownership

  4 )   Scenario Generators 

With regulators and internal risk teams now requiring real-time results and enterprise-level risk assessment, today’s financial institutions have found themselves without the consistent scenarios and analytical underpinning for business-critical activities – such as stress testing, limit setting, projecting capital in to the future and observing how potential exposures will behave over time.

There is a growing need for scenarios that are consistent across the traded markets as well as the real world. Being able to use these consistent scenarios across the enterprise and do projections based on those scenarios will help institutions to calculate capital and reserves, allocate capital across the firm and enhance profitability.

  5)    Risk Infrastructure  

Updating risk infrastructure to handle stress tests as part of CCAR will continue to be top of the agenda. It’s clear the regulatory mandate going forward is to conduct stress testing every quarter if not more frequently, and therefore doing this manually is no longer an option.

Institutions need to employ  and  banks that are able to automate stress tests will be better equip to identity risks impacting their business.

Blog Post - Jun 24, 2010

Reflecting on SIFMA: Risk and the Explosion of Market Complexity

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