Detech Technologies Ltd
Optimal Approach to Financial Stability

The looming cloud of uncertainties in the volatile financial market has financial institutions wading through risky waters. After struggling with regulatory compliance, today, financial institutions are focused more on effective business decision-making alongside managing the risks. It is a critical requisite, given the fact that faulty decisions can hurtle financial institutions towards bankruptcy.

In this regard, regulators too have started seeking long-term planning solutions and scenario analysis from financial institutions. It is an absolute necessity for the institutions to have a contingency plan in place to prepare for diverse scenarios in unpredictable economic environments. The tightening competitive landscape has also created challenges to maintain profitability and efficient balance sheet management has become increasingly important. Thus the need for analytical tools for supporting forward-looking decision-making process has been growing and this is precisely where Detech fits the bill.

Detech Optimizer, the flagship product of Detech, is a powerful next-generation analytics tool that helps financial institutions in banking, insurance and asset management including financial groups in achieving their business goals and managing uncertainties. “We have developed comprehensive and integrated optimization solutions to strategic financial planning and risk management issues which financial institutions face,” says Dr. Antti Korhonen, CEO of Detech.

Detech Optimizer is a unified platform for strategic asset and liability management and enterprise-wide risk management, fulfilling regulatory and institutional requirements for scenario analyses and stress tests. The tool computes optimal strategies with insightful actions that prepare the institutions for multiple economic and financial market scenarios simultaneously, helping them secure their financial stability and success of the institutions.

The tool provides a link between long-term strategic decision-making and short-term operative risk management.

Detech has been an early adopter of prescriptive analytics, which is the most advanced form of sophisticated business analytics. The software is the brainchild of Detech’s experts from the field of economics, finance, mathematical modeling, optimization technology and data science. Detech`s optimization approach provides best possible performance dealing with conflicting management goals relating to profitability, solvency, liquidity, risks, growth and other management objectives. “The need is to find the trade-offs between these goals and find the best actions to fulfill them”, explains Dr. Korhonen.

In an implementation highlight, Detech played a crucial role for a particular client in the pension insurance industry challenged with complexities due to the regulatory environment governing these bodies. Detech`s technology produced excellent results even under adverse market conditions proving the versatility and efficiency of the optimization approach applied.

The company is looking forward to collaborating with global partners and enhancing their offerings. Also, on the cards are plans to accelerate expansion through multi-channel offerings and expand the cloud-based capabilities. Detech’s recent partnership with Finastra, a leading fintech company, signals a step ahead for them in the global market scenario, opening a door of opportunities.