Mizrahi Tefahot Bank

An integrated risk management solution used to seize the right opportunities and remain competitive

Published on 19 Apr 2013

"We gain a tremendous competitive advantage by being able to manage our risk on an intraday basis. having a strong risk management system in place is critical to winning new customers." - Boaz Leibovitch, head of Risk Control

Customer:
Mizrahi Tefahot Bank

Industry:
Financial Markets

Deployment country:
Israel

Solution:
Algorithmics Solutions, BA - Business Analytics, BA - Risk Analytics, Big Data & Analytics, Big Data & Analytics: Risk, Smarter Planet

Overview

Mizrahi Tefahot Bank Ltd. is among Israel’s largest banking groups. An international financial institution with more than $39 billion in assets, the bank operates through 166 branches in Israel

Business need:
The bank needed a way to fully understand the risks across assets, portfolio credit and liquidity as well as satisfy industry regulations such as Basel III, in real time.

Solution:
The bank adopted an integrated risk management solution that automatically performs multilevel calculations of benchmarks for liquidity, asset liability management and Value at Risk (VaR) on an hourly and daily basis, resulting in a dynamic and accurate risk profile of every customer, product and opportunity.

Benefits:
The bank reduced by 99 percent the time to market of new financial offerings by gaining the ability to calculate multiple risk factors automatically, on a daily and intraday basis, while meeting Basel III requirements.

Case Study

Mizrahi Tefahot Bank Ltd. is among Israel’s largest banking groups. An international financial institution with more than $39 billion in assets, the bank operates through 166 branches in Israel and has branches and offices in eight countries across Europe and the Americas. Mizrahi Tefahot serves corporate, private banking and retail banking customers in Israel and offers a full range of financial services and products internationally, including mortgages.

The Opportunity
Mizrahi Tefahot Bank Ltd. could generate a market risk report only once a month, preventing its managers from making timely and informed business decisions. The bank needed a way to fully understand the risks across assets, portfolio credit and liquidity as well as satisfy industry regulations such as Basel III, in real time.

What Makes It Smarter
The bank adopted an integrated risk management solution that automatically performs multilevel calculations of benchmarks for liquidity, asset liability management and Value at Risk (VaR) on an hourly and daily basis, resulting in a dynamic and accurate risk profile of every customer, product and opportunity. Dynamic and comprehensive risk profiles help the bank accelerate its decision to deliver new financial offerings to market.

Real Business Results
The bank reduced by 99 percent the time to market of new financial offerings by gaining the ability to calculate multiple risk factors automatically, on a daily and intraday basis, while meeting Basel III requirements. In just two hours, the software solution produces 70 daily market risk reports that include limits and stress tests across 60,000 transactions valued at more than USD1.2 billion. It also earned competitive advantage through accurate, near-real-time decisions. The solution allows bank analysts to gain more accurate risk projection before executing a trade or launching a financial product. And it acquired a dynamic, comprehensive risk profile for each customer, portfolio or opportunity by accounting for the full range of risk factors across asset classes.

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/analytics. To learn more about Mizrahi Tefahot Bank, visit www.mizrahi-tefahot.co.il/en.

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Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America April 2013 IBM, the IBM logo, ibm.com, Algo, Algo Market and Algo Credit are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. The content in this document (including currency OR pricing references which exclude applicable taxes) is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NONINFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.

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