Cathay United Bank, one of the largest banks in Taiwan by asset size, has implemented Numerix's Treasury system to better manage clients' risk, create reports for regulators, and improve customer satisfaction across the board.

Taiwanese banks are enlisting the services of finance solutions service providers in view of stricter rules and reporting guidelines being required by the Financial Supervisory Commission and amid firmer corporate demand for structured products.

Taiwanese banks are also seeking to provide more professional services to stand out from competition. With the application of Numerix Treasurer, sales professionals can conduct scenario analysis for their clients from the portfolio view and provide customized suggestions straight away, even during times of market downturns. For VIP clients, they can even generate profit & loss statements during specific periods of time and communicate effectively to clients.

"Our objectives are to streamline sales' administrative services and provide proactive strategies for our customers. We believe this progress will continue to help expand our market share in Taiwan and other regions," says Tony Kao, senior vice president of financial marketing department of Cathay United Bank.

"Risk management is also a key issue to address in today's marketplace," Kao adds. "In the past, it would usually take half, or even an entire day to obtain inquiry quotes from counterparties. Now we can obtain a reference price from Numerix Treasurer with one quick click and reply to customers in a short period of time. This enables us to better manage customer risks."

Numerix Treasurer generates a wide range of reports which can be sorted by customer, product category and currency pair. A sophisticated reporting scheme helps banks meet current regulatory requirements for detailed P&L reporting. With the database readily available, customer modifications can be made as needed and the information can be transferred quickly and efficiently to regulators.

"We not only consider the growth of our TMU business important, but also look forward to having a strong mechanism in place for financial derivatives warehousing. To achieve comprehensive financial solutions for our clients, and integrating the trading platform with our current TMU sales platform is our ultimate goal in the near future," adds Kao.

Steven R. O'Hanlon, CEO and president of Numerix believes Taiwanese banks also need to focus on functionality to manage trades. "While pricing transparency is important to Cathay, they also required functionality that could manage the full trade lifecycle," he says.

Numerix Treasurer streamlines this process - enabling increased system interoperability and STP of derivatives products, bringing procedural consistency to the portfolio and valuation process. The solution also helps Cathay United Bank differentiate the level of service it is able to offer to clients. By enhancing operational efficiency, it allows the bank to manage their clients' treasury risks effectively, making it easier to provide clients with best-in-class, superior services.

Due Taiwan's fragmented banking industry, with more than 39 players in a market that has a relatively small population, banks are forced to differentiate themselves and find innovative ways to maintain customer loyalty. Staying ahead in the island's structured product market will demand for highly flexible and customer-centric treasury systems that make reporting to regulators and managing customer risks as efficient as possible.