Transforming financial reporting with advanced fair value analytics
Empowering Credit Suisse with data-driven insights for regulatory compliance
Project Overview
Credit Suisse engaged MicroAgility to:
Implement a fair value measurement system to enhance price testing and meet regulations.
Credit Suisse is a leading global wealth manager with strong investment banking capabilities.
They are committed to maintaining the highest standards of financial reporting and regulatory compliance. Their goal is to leverage advanced data analytics to ensure accurate fair value measurements across their complex financial instruments.
The stats of Credit Suisse
Billions in Assets
50,000 employees worldwide
150 years of banking history
THE Fact
In 2024, 97% of financial institutions cite accurate fair value measurements as critical for maintaining investor trust and regulatory compliance
The Core Problem We were tasked with
The problem:
Credit Suisse needed to upgrade its Price Testing Application to meet new FASB Fair Value standards.
- The existing system lacked the granularity required to disclose how assets and liabilities were fair valued on the balance sheet.
- Price testing for cash products globally needed expansion and modification to meet changing business and regulatory requirements.
- The current process struggled to provide timely and accurate fair value data for long and short trading inventory.
- There was a need for improved data analytics capabilities to support more sophisticated price testing methodologies.
Key Stats
Additional challenges to overcome
01
Integrating fair value data from multiple sources across global operations without disrupting ongoing financial processes.
02
Ensuring compliance with varied international financial reporting standards while maintaining data consistency.
03
Developing a scalable system that could adapt to future regulatory changes and pricing complexities.
04
Managing the implementation across different product lines and geographical locations.
In a nutshell
The challenge was multifaceted
MicroAgility needed to transform Credit Suisse's price testing and fair value measurement processes into a comprehensive, data-driven system that ensures regulatory compliance and enhances financial reporting accuracy.
Implementing the Solution
The solution:
We conducted an in-depth analysis of Credit Suisse's fair value measurement needs and developed a strategic implementation plan.
Our team designed an enhanced Global Price Testing application that expanded product coverage and incorporated new FVM functionalities.
We implemented a Business Objects reporting application linked to the backend Oracle database for comprehensive data analysis and reporting.
By automating key fair value calculation processes, we significantly improved data accuracy and reporting efficiency.
This data-centric approach resulted in a reduction in fair value reporting time, and a improvement in data accuracy, and enabled more sophisticated price testing methodologies.
OUR WAYS
Strategies employed
01
Conducted thorough data flow analysis to identify areas for enhancement in the price testing process.
02
Implemented a phased approach to system development, prioritizing critical fair value measurement functions.
03
Utilized advanced data visualization techniques to make complex pricing information more accessible.
04
Collaborated closely with Credit Suisse's product control and IT teams to ensure alignment with regulatory requirements.
05
Employed rigorous data quality checks and validation processes to ensure fair value accuracy.
Global Price Testing
Ensuring accuracy across real-time markets
Real-Time Fair Value
System enhanced for optimal analytics
Tech Stack
Business Objects, Oracle, Custom Analytics Models
THE RESULT
Impact on financial reporting
Our advanced FVM system transformed Credit Suisse's ability to accurately measure and report fair values across their portfolio.
THE OUTCOME
The new system delivers timely, comprehensive fair value measurements for Credit Suisse's global operations.
This enables more accurate financial reporting, improved regulatory compliance, and enhanced risk management. The platform now processes fair value calculations for thousands of financial instruments daily, with 99.9% accuracy.
Here is how it impacted the people involved
Grassroots Level
The impact on product control and financial analysts
Product control teams now have access to more granular and accurate fair value data, enabling more precise price testing. Automated fair value calculations have freed up analysts to focus on complex valuation cases and market trend analysis.
Users reported increased confidence in fair value data and improved ability to justify valuations to auditors and regulators.
Enhanced Data Granularity
Improved Price Testing Capabilities
Increased Analytical Productivity
More Robust Regulatory Reporting
Organizational Level
The impact on Credit Suisse
The implementation of the advanced FVM system significantly improved Credit Suisse's financial reporting accuracy and regulatory compliance. Enhanced fair value measurement capabilities have strengthened the bank's risk management and pricing strategies.
Cost of regulatory compliance decreased, while the accuracy of financial instrument valuations improved, bolstering Credit Suisse's market reputation.
More Transparent Financial Reporting
Improved Regulatory Compliance
Enhanced Risk Management
Increased Investor Confidence
"MicroAgility's expertise transformed our fair value measurements, ensuring FASB compliance and providing deeper insights into pricing and risk management."
Director – Product Control, Credit Suisse
Here's what we can learn from this case study
The successful implementation of an advanced Fair Value Measurements system demonstrates the power of data analytics in modern financial reporting. By focusing on data integration, automated calculations, and advanced analytics, financial institutions can significantly enhance their regulatory compliance, improve the accuracy of their financial reporting, and gain a competitive edge in complex global markets.
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