Banking industry leader chooses PeopleSoft to manage risk and profitability

US-based SunTrust Banks has selected PeopleSoft for its Profitability Management solution for Financial Services, an integrated suite of analytic applications to manage risk and profitability across its organisation.

A provider of eBusiness and business intelligence solutions for the financial services industry, PeopleSoft provides global lending institutions with the only integrated suite of analytic applications for managing risk and profitability at the customer, channel and product levels. This product suite enables lenders to pinpoint where shareholder value is created or lost in their business practices and to assess the appropriate actions. This is all accomplished within a pure internet architecture.

SunTrust, the ninth largest banking organisation in the United States, selected PeopleSoft for its vision and expertise in providing profitability management solutions to the financial services industry. As part of the solution, PeopleSoft Consulting will provide in-depth product expertise and a seamless transfer of knowledge, which will significantly augment the skills of SunTrust`s team.

"We chose PeopleSoft because their product represents a new generation of enterprise-wide profitability and performance software," says Cliff Hope, group vice president and head of management accounting. "The PeopleSoft product allows us to pull information from many different sources when addressing customer or product issues. This wealth of comprehensive information enhances our ability to make strategically sound decisions that directly impact our competitiveness and customer service."

SunTrust purchased the PeopleSoft Profitability Management for Financial Services solution, which includes the following applications:

• PeopleSoft Asset Liability Management

  - a sophisticated analytic application that enables lenders to manage the value of their assets, liabilities and off balance sheet commitments in relation to fluctuating interest rates; it also help lenders manage cash flow.

• PeopleSoft Funds Transfer Pricing

  - accurately calculates profitability of each product, line of business or customer by assigning to each one an internal funding cost or credit.

• PeopleSoft Risk Weighted Capital

  - accurately calculates the profitability of each product, line of business or customer by assigning to each one a capital charge based on its natural risk.

• PeopleSoft Activity Based Management

  - assigns indirect costs to each product, channel or customer thereby giving the institution a picture of the various costs it incurs while doing business. PeopleSoft South Africa MD, Jan Coetzee, points out that today`s lending institutions worldwide are struggling to remain competitive in a market that is being drastically reshaped by deregulation, increased competition, over capacity and disintermediation.

He says that PeopleSoft`s Profitability Management suite provides these institutions with the tools for implementing new customer-focused strategies as they move towards strengthening business relationships with their existing customer base. "PeopleSoft will work closely with SunTrust to help them achieve their profitability management goals."