The demands placed on bank treasury and risk managers have never been so great.
Treasury functions must guide bank balance sheets through unprecedented and uncertain times, while playing a leading role in revenue modeling for stress testing. Risk functions are expected to defend banks against a panoply of attacks under the watchful eye of not just regulators, but also terrorist prevention groups. Both treasury and risk have strategic transformation opportunities, leveraging big data and big analytics — but trying to innovate while navigating the minefield of current challenges is no easy task.
We provide advisory services to treasury and risk functions at banks in the Americas, Europe, and Australia. We partner with executives to advance bank analytic capabilities, bringing to bear cutting edge modeling techniques pioneered by Novantas, thought leadership, and extensive experience.
Revenue & PPNR Modeling
Novantas is at the forefront of revenue and PPNR modeling, which is increasingly critical for stress testing. Our expertise is best known in statistical revenue modeling, though we have pioneered a broad spectrum of quantitative and qualitative (expert business judgment) approaches. We continue to refine our approaches through work with over a third of the US CCAR banks, many US DFAST banks, and large banks in Canada, the UK, Australia and Latin America.
Credit & Capital Markets
As the global financial crisis fades into the past, many wonder whether the classic boom-bust cyclicality of credit and capital markets remains intact, where will the next credit challenges be, and how can we avoid them? The Novantas team specializes in applying leading edge capital markets valuation-based analytics to improve the origination decision-making and portfolio management of bank credit portfolios.
Asset/Liability Management (ALM)
Enhancing ALM is at the top of Treasury agendas in 2017 given the continued upward path of interest rates in many countries, evolving competitive dynamics, and heightened regulatory scrutiny. We provide banks with sophisticated tools for ALM through the development of client-tailored behavioral models for loan and deposit portfolios using our proprietary modeling data, analytics, and methodologies. We help banks implement these tools in balance sheet management models, funds transfer pricing frameworks, stress testing applications, and other areas.
Global regulatory reform of liquidity requirements is raising the bar above the capabilities of most existing bank management tools and decades-old spreadsheet-based modeling constructs. Management teams and regulators are keen to invest in internal liquidity analytics, particularly around deposits and loan commitments. We help clients adapt to LCR/NSFR and use proprietar approaches to triangulate granular stressed liquidity assumptions from a combination of internal and external data (including proprietary Novantas benchmarks) and proprietary analytics, tools and methodologies. We gear our efforts toward forward-looking perspectives on balance sheet management.
3rd Annual Liquidity Risk Management USA 2018
The Bank Treasurers’ Peer Group 14th Annual Meeting
Reviewing Regulatory Developments and Gaining a Clearer End State Picture to Grow Balance Sheet and Business Objectives
CFP 7th Annual Risk Americas 2018