Bangkok--25 Jul--Wealth Management System Microsoft Server Product Portfolio Customer Solution Case StudyCustomer Profile BankThai Public Company Limited was established in 1998 with the vision of becoming one of the nation’s high-quality commercial banks, with an advanced management system, a highly capable workforce, products and services which meet the standard and trends of the market and the requirement of small, medium and large customers as well as institutional customers and to be highly competitive in the banking arena. BankThai Public Company Limited emphasize a well supervised business process in order to build an effective corporation based on sustainable long term growth, create a competitive edge in order to safeguard investment money and add value to shareholders in the long run, create confidence in domestic and international investors. The bank has won the “Best Corporate Governance Report Awards” in 2005 of the SET Awards 2005 prizes by the Security Exchange of Thailand. BankThai Public Company Limited provides services to customers in Bangkok and the provinces with 138 locations which include 92 branches in greater Bangkok area and 46 branches in the provinces. In the mean time, there is plan to expand continuously with more branches in the future. As of 31 of March 2007, BankThai has a registered capital 61,402.5 million Baht, total assets of 257,619 million Baht and non-performing loan of only 2.53% of total loan net of reserve for doubtful accounts.Situation When the economic crisis of 1997 occurred there were numerous financial institutions closed down. This has had an effect on the economy in various aspects. It has cause the financial institution to see that it is subject to many forms of risks. Therefore the Bank of Thailand has set up a framework for the management of Liquidity risk. In year 2002, the Bank of Thailand required that financial institutions must implement Risk management systems and must produce liquidity risk report submitted to the Bank of Thailand for every quarter since 2003. Later the Bank of Thailand has also set additional framework for the management of Interest Rate Risk in order to safeguard financial institutions from committing the same devastating mistake again. This was to take effect since 2006. Hence, BankThai PCL, which resulted from the mergers of many other financial institutions, has make use of the various strength from these original institutions as guidelines in its management. Risk management is an emphasis for BankThai in line with the policy of the Bank of Thailand. BankThai has emphasized on the monitoring and controlling of Liquidity Risk and Interest Rate Risk. Besides from producing reports in accordance to the framework of the Bank of Thailand, BankThai also tried to use the available information to support the decision making process of ALCO and other related executives in regards of Interest Rate Risk and Liquidity Risk. The system used to accomplish such tasks must be able to integrate and retrieve data from the Assets and Liabilities databases of the Bank and support the work load of 930,000 transactions a day. Apart from Liquidity Risk Management which is essential to the survival of the Bank, Interest Rate fluctuation is also an important factor that directly affects the profitability of the Bank. These have led BankThai to find solutions from software vendors who will meet the 4 requirements set by the Bank as: 1. The system must be able to meet all criteria regarding the preparation of liquidity report to the Bank of Thailand in accordance. 2. The system must provide a user interface that easy to use and learn. 3. The Vendor must be a company that is financially sound and has proven experience in Risk Management System Implementation and Training. 4. The System must be technically expandable, stable, precise, and customizable. Most importantly, the system must provide security to the data which is collected from all the customers.Solution With such established requirements, BankThai decided to choose Bonanza ALM, developed by Wealth Management System Limited who is a Microsoft Certified Partner, to satisfy its system need. The Solution Provider Company and its system managed to solve each and every question faced by BankThai PCL, especially in the aspect of User-friendliness and Reliability. This is because Bonanza ALM was developed on the Microsoft Windows Platform and designed to work with Web Browser, i.e. Web Based, using the N-Tier architecture which consists of the following technologies: 1. Use the Microsoft Windows Server as its Operating System platform 2. The Database for Bonanza ALM is maintained using Microsoft SQL Server Enterprise Edition, and because Bonanza ALM collects huge amount of data, therefore Data Warehouse concept was employed which consists of: - Extract Transformation Loading (ETL) using Data Transformation Service (DTS) to extract and verify data - Use OLAP Microsoft Analysis Services to maintain the data 3. Use Web Server IIS version 6.0 4. Development Tools used are MS Visual Studio, ASP.Net, C++.Net Web ServiceThe Bonanza ALM used by BankThai PCL is applied on 2 areas of works such as: 1. Bonanza ALM Back Office is used to retrieve, record, maintain and process data used by the system 2. Bonanza ALM Analysis is used to display the results, analyze and simulate Market conditions such as Seasonal Roll Over of Deposits and the changes in Interest Rates The architecture of the Bonanza ALM used by BankThai PCL is designed so that data can be interfaced into the system in an agreed protocol. When a scheduled interface task is due, the system will check and verify the data automatically and will also allow user intervention. After all data are verified, it is then sent to the Back Office and maintained there. Users can make enquiry to such data via a Web Based Front Office Application. Users can also export the data into Excel files for further processing.Benefit 1. The system completely meets the Bank of Thailand’s requirements for submitting liquidity risk report. 2. The system is able to fulfill the information need and reports formulation of ALCO and related executives, including report on liquidity risk and risk from change of interest rates or any other reports required by top management for their decisions making process. The decision whether to adjust or not adjust interest rates, liquidity and the structure of Assets and Liabilities will have a profound effect on the Bank and it must not be taken lightly and must be precise. For more information please contact pattanasak Wealth Management System Limited. [email protected] 02-8614820-35 EXT 619