Market Landscape

Industry Challenges

Primatics Solutions

Consulting Focus Areas

Loans/Mortgage Servicing Assets

Credit Risk Analytics and Active Portfolio Management

Pricing/Valuation (Fair Value Services)

Compliance and Disclosures

Mergers and Acquisitions

Primatics Solutions

To stay ahead of the market forces, financial institutions need to invest in sound internal processes and systems designed to enable quick response and are scalable to grow as the company executes its strategies. If they are not prepared, companies will incur greater costs and risks to their operations. To combat this, companies will need:

Sound Enterprise Data and Systems Architecture

Most back office issues emanate from disparate databases and applications processing “bad data.” Data is the lifeblood, and a financial institution’s application architecture is the system through which data is converted into information necessary to track progress, make sound decisions, and execute upon corporate strategies. Many companies looking for a cure focus too much on the symptom and not the root cause of the symptom. Financial institutions must review their internal data and systems architectures regularly to determine if they are optimally satisfying business needs. Primatics Financial has conducted such “diagnostics” of architectures to identify gaps, address redundancies, and recommend strategies towards application convergence or outsourcing.

Integration Covering Full Life Cycle of the Loan/Security

In the banking arena, systems tend to be silo’d in accordance with function (originations, underwriting, secondary, servicing) as well as in the capital markets (front office, middle office, back office). The lack of strong integration points causes data to be dropped and transformed unnecessarily. Integration points can be represented by (1) system connections, (2) data connections, and (3) organizational connections. Although most people would focus on how one system talks to the other, it is the data and organizational connections that tend to cause the bottlenecks. Primatics Financial has helped companies establish more clear SLAs (service level agreements) to govern these hand-offs in accompaniment to the automation of these key integration points. As part of this effort, we have noticed that most companies address data needs at the “source of the need,” which is typically your customers in the back office, accounting, financial reporting, tax, and regulatory. Data gets created to address their needs and is now considered “their data.” Companies find themselves in a position where they have accountants owning credit rating data or regulatory reporting personnel owning certain balance information, simply because they created the data.  Primatics Financial has helped financial institutions define such strategies to better integrate across front-end initiation events through back-end customers needs.

Ability to Make Decisions Based on Intelligence Compiled Through Combination of Market and Internal Data

Banks and other financial institutions need to convert data into information and then into intelligence that will enable them to make the right decision. Easier said than done. This is critical to implementing more proactive risk management techniques and to spending more time analyzing results of operations as opposed to processing results of operations. Primatics Financial is uniquely positioned to add tremendous value to financial institutions which rely on such information to capitalize on market opportunities. To accomplish this, financial institutions need to address the following four major components of a sound decision support system:

A Flexible Back Office to Enable Capitalizing Quickly on New Front-End Strategies

Flexibility….as banks develop new products and/or the front office transacts in new products, it is imperative for the back office to adapt quickly to process these new items. Given the trend towards increased use of non-traditional products, which will manifest in the capital markets as well, this flexibility will provide companies with a competitive advantage.