Dresdner selects WhiteLight for Global Risk Management.  For more
information on how WhiteLight can help your organization, contact me.
 
Dale Schuett
Account Executive
(925) 462-2497
dale@whitelight.com <mailto:dale@whitelight.com> 
 
 
The Dresdner article was printed up on the Banking Channel....
 
  _____  

TOP
  <http://www.thebankingchannel.com/images/titletech01.gif> 	
?" frameBorder=no width=468 scrolling=no height=60> ?"> 

 
<http://ad.doubleclick.net/jump/thebankingchannel.com/;abr=!ie;pos=top;sz=46
8x60;tile=1;ord=> ?">?" border=0 height="60" width="468"> 
  <http://www.thebankingchannel.com/images/titletech02.gif>
<http://www.thebankingchannel.com/index.jsp>
<http://www.thebankingchannel.com/technology.jsp>
<http://www.thebankingchannel.com/communitybanking.jsp>
<http://www.thebankingchannel.com/regcompliance.jsp> 	
  <http://www.thebankingchannel.com/images/nav/tech_12.gif>
<http://www.thebankingchannel.com/logout.jsp>
<http://www.thebankingchannel.com/about.jsp>
<http://www.thebankingchannel.com/advertise.jsp>
<http://www.thebankingchannel.com/help.jsp> 	


  <http://www.thebankingchannel.com/images/nav/tech_16.gif> 


 	
 

 <http://www.thebankingchannel.com/tbc-cgi/storysearch/storysearch.pl> 	

  <http://www.thebankingchannel.com/images/nav/tech_21.gif> 


  ?" frameBorder=no width=124 scrolling=no height=30> ?"> 

 
<http://ad.doubleclick.net/jump/thebankingchannel.com/;abr=!ie;pos=sbox;sz=1
24x30;tile=2;ord=> ?">?" border=0 height="30" width="124"> 


  <http://www.thebankingchannel.com/images/nav/tech_29.gif> 


 <http://www.tbcmarketplace.com/> 


 <http://www.thebankingchannel.com/features/mergerwatch.jsp> 


 <http://www.thebankingchannel.com/features/messageboards.jsp> 


 <http://www.thebankingchannel.com/home/moreevents.jsp> 


 <http://www.thebankingchannel.com/features/quicklinks.jsp> 


 <http://www.thebankingchannel.com/features/rankings.jsp> 


 <http://www.thebankingchannel.com/editregistration.jsp> 


 <http://www.thebankingchannel.com/features/glossary.jsp> 


  <http://www.thebankingchannel.com/images/nav/tech_34.gif> 


 <http://www.americanbanker.com/PSUser> 


 <http://www.nationalmortgagenews.com> 


 <http://www.us-banker.com> 


 <http://www.banktechnews.com> 


 <http://www.cardforum.com> 


 <http://www.fsmarketing.com> 


 <http://www.tgbr.com> 


 <http://www.sheshunoff.com> 


 <http://www.tfp.com> 


 <http://www.tfconferences.com/> 


 <http://www.americanbanker.com/PSUser/user.html?type=reprints> 


  <http://www.thebankingchannel.com/images/nav/tech_42.gif> 

 	  	
 	 ?" frameBorder=no width=125 scrolling=no height=125> ?"> 

 
<http://ad.doubleclick.net/jump/thebankingchannel.com/;abr=!ie;pos=thumb1;sz
=125x125;tile=3;ord=> ?">?" border=0 height="125" width="125"> 
 	 
?" frameBorder=no width=125 scrolling=no height=125> ?"> 

 
<http://ad.doubleclick.net/jump/thebankingchannel.com/;abr=!ie;pos=thumb2;sz
=125x125;tile=4;ord=> ?">?" border=0 height="125" width="125"> 

 

  <http://www.thebankingchannel.com/images/nav/tech_17.gif> 

German Bank Bets on Predictive Analytics


From: Bank Technology News
Aug 28, 2001
By Louise West
		


German investment bank Dresdner Kleinwort Wasserstein (DrKW) has purchased
analytic software that, it hopes, will put it on the cutting edge of risk
management. 

WhiteLight Systems, the Palo Alto, CA-based company, has announced that the
investment bank selected analytics and Web reporting software for a global
risk management solution in a licences and services contract valued at $2.3
million. 

The bank is using WhiteLight to develop applications that will help control
the bank's exposure to risk. DrKW hopes the applications will improve the
visibility of data about its investment banking portfolio, such as foreign
exchange, equities and derivatives, to a much wider range of business
decision makers across the global business and provide a more flexible
system for interrogating the data. The bank also expects the new
applications to uncover new product and market opportunities. 

The initial project involves developing three applications: credit risk,
market risk and product control. Based on WhiteLight's AnalyticServer, DrKW
will roll out the applications in 2001 across its major international
trading centers, including Frankfurt, London, New York and Tokyo.
AnalyticServer's multi-dimensional modeling engine is at the core of
WhiteLight's application suite. It is designed to allow complex interactive
analysis within large and varying data sources. 

Additionally, DrKW has selected iApplicationServer, WhiteLight's solution
for Web-based analytics, to enable DrKW's decision makers worldwide to
operate from a unified global view of business data. Using
iApplicationServer, the German bank will be able to create and deploy
interactive reports to any user on the Web. 

The bank is not talking about its purchase, but Peter Beard, WhiteLight's
vice president of world wide sales, could confirm that DrKW is our biggest
physical user in the world. It has 25 WhiteLight servers in production, and
it has purchased the largest number of our servers within our customer base,
in the shortest amount of time. Other project areas within the bank are
looking at how to use WhiteLight. 

Other European banks are considering buying the technology, developed as the
next step up from online analytical processing (OLAP), which is regarded as
increasingly unwieldy and inflexible in the wake of the e-business
revolution. Merrill Lynch predicts that the total e- business analytics
market opportunity will top $25.1 billion by 2004. 

Growing market 

It's a fact that the scope of business is ever expanding, from the size of
an institution's operations to the markets and customers it can reach. At
the same time, market conditions and customer requirements change rapidly,
and there are more factors and variables to be considered before decisions
can be made, WhiteLight says. 

Gartner analysts agree and they predict significant growth in the predictive
analytics business. By 2005, enterprises will need three times as many
professionals on their analytic staff as they need today, Gartner believes,
and the demand for analytic talent today outweighs supply by at least two to
one. The killer trend for e-business will likely be the real-time
enterprise, i.e. an enterprise able to collect nearly instantaneous feedback
on business processes and to take the right adaptive, corrective or
preventative action. Web analytics enables executives and managers to know
where the company stands in its quest to become a real-time enterprise and
when the company will achieve real-time business capability across all
channels, from the shop floor to the e-marketplace says Gartner. 

Accordingly, a new generation of analytic applications, dubbed predictive
analytics, is needed to help managers understand what is happening and why,
and to test the outcome of prospective decisions. 

WhiteLight's Analytic Application Suite has been developed to allow the
near-instant extraction of critical and previously unavailable
decision-support information from large and complex databases, the company
says. 

It is still very new and can be categorized as an early adopter market, says
Beard of the technology. People are looking at two scenarios. There are
those companies that want to be leading edge, or those which have used
traditional methods (of risk management) and found their limits. With
operational risk, the only way to do anything remotely like we do is with
Excel, and it results in the 25-page spreadsheet from hell which only one or
two people in the company can understand. We can put the data on a server
rather than a desktop and all users are permitted to see all facets.
Business managers or analysts don't need to know SQL to create
multi-dimensional models. They can define formulas and data sources using a
drag and drop interface. 

According to Beard, All the products that have grown up over the last 10
years have been what I call rearview mirror technology. It's historical
data, looking at where you have come from. Predictive analytics takes the
same data, but in increasingly large volumes and puts it into a model so
that analysts can interact with that. What if, for example, there were to be
a change in the underlying rate by 10 basis points? You can make the change
and see the impact across the entire model. 

Growing interest 

Although the impact of predictive analytics on DrKW's bottom line is not yet
known, WhiteLight says that one of its clients involved in loan
collateralization believes it will be able to return $20 million to the
balance sheet thanks to the software. Financial institutions will also be
able to hang onto costly legacy systems, says Beard. Every bank has legacy
systems on which they have spent millions. We sit above that in a platform.
Pertinent data is modeled within the WhiteLight server. 

Other financial institutions in Europe are keen to follow in DrKW's
footsteps, says Beard, who already counts Barclays, J.P. Morgan Chase and
Lehman Brothers among his company's customers. We are involved in a major
project with a large multi-national Dutch bank with the same profile as
DrKW. It is an existing customer with whom we will be putting the technology
group wide. It owns a number of other banks across Germany and Holland. And
over the next month we will be able to announce three new contracts in
Switzerland, Germany and Holland. 

The Bank for International Settlements (BIS) has created a groundswell of
interest in predictive analytic applications with its new Basel Capital
Accord. The accord is based on three pillars that allow banks to evaluate
properly the various risks they face. It focuses on minimum capital
requirements, the supervisory review of an institution's capital adequacy
and market discipline through effective disclosure to encourage safe and
sound banking practices, according to the BIS. The new accord will be
finalized at the end of the year, and is expected to be implemented in
member jurisdictions by 2004. 

It will be a real benefit to banks if they can reduce the amount of
provision they must have. It is a clearly defined initiative with massive
tangible benefits, says Beard. 


Copyright 2001 Thomson Financial. All rights reserved. 

Format
<http://www.thebankingchannel.com/features/printstory.jsp?section=tech&story
=TBC9W0YNYOC> for printing      Email
<http://www.thebankingchannel.com/features/emailstory.jsp?section=tech&story
=TBC9W0YNYOC> this story 
  <http://www.thebankingchannel.com/images/nav/home_18.gif> 


TOPMore Technology
<http://www.thebankingchannel.com/technology/morearticles.jsp> Headlines



	
 	 
?" frameBorder=no width=468 scrolling=no height=60> ?"> 

 
<http://ad.doubleclick.net/jump/thebankingchannel.com/;abr=!ie;pos=bott;sz=4
68x60;tile=5;ord=> ?">?" border=0 height="60" width="468"> 

  <http://www.thebankingchannel.com/images/combanking/orangedot.gif>
<http://www.thebankingchannel.com/index.jsp>  Return to Home Page 

 <http://www.thebankingchannel.com/index.jsp> Home |
<http://www.thebankingchannel.com/technology.jsp> Technology |
<http://www.thebankingchannel.com/communitybanking.jsp> Community Banking |
<http://www.thebankingchannel.com/regcompliance.jsp> Regulatory & Compliance
 <http://www.tbcmarketplace.com/index.oft> Electronic Marketplace |
<http://www.thebankingchannel.com/features/rankings.jsp> Rankings |
<http://www.thebankingchannel.com/features/glossary.jsp> Banker's Glossary |
<http://www.thebankingchannel.com/features/alerts.jsp> Personal Alerts