10.17.2017

NWB Selects FINCAD for Portfolio Valuation

Dutch bank Nederlandse Waterschapsbank N.V., a financial services provider for the Dutch public sector, has selected FINCAD F3 to help consolidate their use of multiple systems for improved valuation consistency and for eliminating the manual data aggregation from the different systems, vendor officals announced today, October 17.

NWB will also use FINCAD F3 WorkStation, an intuitive and easy-to-use web application for generating and reporting portfolio valuations, risk, and cash flows.

FINCAD will generate consistent valuations on NWB’s portfolio of nearly 7,000 positions consisting of a wide range of instruments from vanilla interest rate swaps to complex structured products, including digital power reverse dual currency notes and callable CMS spreads. FINCAD F3 will enable a reduction in the number of valuation systems, automate and streamline their end of day process, allow better collateral management with counterparties, and improve both internal and regulatory reporting.

“Currently, we have multiple valuation systems valuing different parts of our portfolio, and because each system uses different models, there is a risk of inconsistency and errors.” said Paul Janse, information analyst at NWB. “With FINCAD, we will achieve maximum consistency in valuations across our entire portfolio.” Janse added, “We also look forward to the flexibility and transparency of F3, as it allows visibility into all details of the calculations. It’s not a black box.”

In terms of technology, NWB required a solution that could integrate with their treasury system to facilitate accurate end-of-day reporting. FINCAD’s flexibility will enable this, and eliminate the need for the bank to manually aggregate reports from different systems. “Integration with our existing systems is one of our biggest priorities. With FINCAD, we will be able to integrate market data and valuations in an automated and seamless end of day process,” said Janse.

End of day valuations produced by FINCAD will be leveraged for internal reporting, managing balance sheet exposure, and producing external reports required for European Central Bank and Basel III reporting. FINCAD will also be used for the determination of collateral flows between NWB and its swap counterparties, and help the bank better manage counterparty exposure.

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