Aite Group has awarded SunGard’s BancWare Profitability application, “The Superior, In-Depth, Multi-Dimensional Solution Award for banks with over USD1 billion in assets.” BancWare Profitability received this recognition for the application’s depth of insight into the operations, interactions and complexities of banking.
Aite Group announced the award in its December 2006 report titled, “Profitability Analytics: Growing in Adversity.” The report profiled and compared providers of profitability analytics tools that help senior bank managers make better strategic decisions to increase profitability in the face of shrinking margins, declines in deposits and rising costs.
The Aite Group report concluded that profitability applications are increasing in acceptance across all banking tiers, and that investment in these tools is expected to increase by 10 percent year over year through 2010.
“What drives this business is anxiety about interest rates and rising costs, as well as positive proof of the ROI from these applications,” says Randi Purchia, a senior analyst at Aite Group and author of the report. “Many banks still struggle to find sufficient resources and champions to integrate their value deep into the organisation, to the front lines, across lines of business, into customer management processes, and to strategic planning groups and boardrooms where its output could have the greatest impact.”
The multi-dimensionality of SunGard’s BancWare Profitability is designed to help reduce these internal hurdles. Users value the application’s capability to calculate profitability at the account level, drill through every level of the hierarchy, and aggregate analysis and reporting to help improve accuracy and support better decision-making throughout the banking organisation.
“We are encouraged by Aite Group’s emphasis on profitability analytics, which is critical for banks that wish to remain competitive, and honored by its recognition of BancWare Profitability as a solution that can help financial institutions measure and optimise their performance,” adds Terence Faherty, the president of SunGard’s BancWare business unit.