Capital markets

Zoral Labs has undertaken a wide range of development projects in FInance and Banking. Below is a brief summary of some of the work we have completed, giving an insight into the depth of domain skills that Zoral maintains in this sector.

Equities

• Market data platform development for institutional and retail customers. Data provided by the platform includes worldwide Forex, Commodities, Equities, Bonds, Futures and Derivatives.
• Trading workstation and decision support analytics platform development for retail investor market. Trading platform features include support for unlimited Entry, STOP and Limit, Trailing Orders; back-testing functionality; automatic trading; trading signals redistribution and trade decision support analytics.
• Utilizing News and social media intelligent real-time monitoring to predict stock price movements as part of automated equities trading strategy. Cloud based, highly scalable system correlates stock price movements to granular sentiment for events and entities derived using NLP and artificial intelligence (AI) from comprehensive, worldwide news/blogs/forums/social media sources.
• Order Management System (OMS) and Trading Platforms for Equity Derivatives, IR, FX and Convertible Bond desks. SOA infrastructure with integrated price calculations, risk management, trade P&L and analytical components. Works with Exchange and OTC instruments.
• Equity derivatives trade processing system development including:
  • swaps calculation and reporting engines
  • market data integration
  • trade-matching algorithms
  • position keeping
  • cash flows generation
  • interest and equity resets
  • recalculations of backdated activities
  • rule-based corporate actions engine
  • trade corrections and
  • swaps / trade booking
  • support for the development of new equity swaps products
  • API and web services to middle-office systems
• Algorithmic Trading Architecture includes the design of a Tick database schema, vectorized database optimization to achieve 10 fold performance improvement for the calculation of VWAP, TWAP algorithms

Fixed Income

• OTC trading platform for fixed income, CDS and interest rate derivatives, algorithmic trading implementation for fixed income markets
• Securities Reference Database for position keeping, corporate actions and risk management systems
• Trading systems for credit derivatives
• Data Warehouse and reporting platform utilizing BizTalk with KPI’s, economic capital and P&L calculations, credit and market risk calculations, regulatory reporting, analytics and data mining capabilities

Middle-Office

• Basel II compliant – Enterprise Risk Data Warehouse implementation
• Risk Management Architecture (Credit, Market, Operational)
• Rule based Trading P&L Attribution system for Equities, Fixed Income, FX, Derivatives and Credit products
• Value at Risk (VaR) platform with key risk indicators
• Security Master and Reference Data Management
• Data Quality Monitoring of Enterprise Credit and Operational Risk data to discover incomplete, invalid, inconsistent and inaccurate data automatically
• Consolidated Operational Data Store (ODS) for Global Financial Reporting. Data Warehouse consolidates all Global Banks financial products in one flexible, all encompassing data model and data quality assured architecture. ODS facilitates in Financial, managerial, Regulatory and Risk control reporting. Generation of detailed Balance Sheet, Off Balance Sheet, Income Statement, Statement of Cash Flows is automated for a variety of dimensions to include counterparty, time, organizational hierarchies, legal entities, industry, currency, products, risk, etc.  Flexible and extensive Data Model accommodates the following products:
  • Multiple products, consolidated Reference Data
  • Loans
  • Securities Borrowing & Lending
  • Repos
  • Checks, Bills & Money Market Papers
  • Deposits
  • Retail Banking Savings Accounts
  • Settled Positions
  • Paper issued by the investment bank
  • Deposits from Fiduciaries
  • Unsettled Cash Market
  • Swaps
  • Credit Derivatives
  • Futures
  • Options
  • FX
  • Forward Rate Agreement
  • Interest Rate Agreement
  • Interest Rate & other Swaps
  • Structured Products
  • Etc.
• Advanced Data management Solutions
  • Reference Data Management
  • Models back testing and regression testing
  • Data & MetaData Quality Management & Audit
  • Data Validation & Certification
  • Audit, Balance & Control  (ABC) Management
  • Managed ETL / EAI Framework – Processes (change control, promotion and migration management of shared objects, impact analysis), Components (Error Handling, Process Metadata, Operations management, Scheduling and run-time dependencies), Related systems (Workflow management, OpenView Console, Availability Management, Trending/Sizing/Scaling)
  • Unit of Work Management in parallel distributed ETL processing. Achieving significant transactional processing scale while preserving referential integrity, serialization of transactions into target ODS and provide effective fault-tolerance against distributed commit failures at target Operational Data Store (ODS).

Back-office

• Trade Settlement and Reconciliation Systems
• Regulatory and Client Reporting Systems

Treasury

Near real-time Liquidity Management system captures data from multiple sources, applies complex logic, and creates a near-real-time aggregated view of accounts with collateral adjusted to market conditions from real-time market feeds. Combined transactional data with historical data and statistics derived from financial institution own liquidity experience to produce a robust decision support environment for advanced cash management services.

Commercial Banking

• Customer Risk Adjusted Profitability System with rule based cost allocation functionality
• Credit Reporting and Information system – for credit risk assessment of loan portfolio companies and industries worldwide
• Customer Reference Data Management
• Customer Relationship Management (CRM)
• Cross Sell Analysis and Marketing Sub-Systems
• Business Intelligence and Analytics development

Retail Banking

Consumer Credit and Internet Banking

Banks and finance companies are facing significant cost and competitive pressures in a volatile market as consumer / SME loan processing remains a predominantly manual process, slow, inconsistent and expensive. Financial institutions are looking to further scale, improve quality and credit decision consistency, automate and further reduce labor costs. This is where Zoral Labs has deep expertise to help consumer and SME lending institutions achieve significant technology gains, automating all possible manual decision processes. Zoral Labs expertise includes:

• Consumer and SME credit: on-line, real-time, straight through processing lending platforms
• Real-time web/mobile enabled consumer / SME loan application processing, with sophisticated, multi-model based credit and fraud risk management systems
• Advanced modeling to optimize various parts of the business – from default rate control to profit maximization, from customer retention control to optimization of all collection stages, from portfolio management to stress-testing, from credit limit management to risk-adjusted pricing, from budgeting to provisioning etc.
• Development of online, near-real-time, consumer lending decision engines that can predict:
  • Probability of customer default, predict time of default
  • Customer retention estimation, NPV estimation
  • Customer profitability over time - utilizing multi-dimensional AI based scorecard
  • 3-rd party fraud estimation, 1-st party fraud estimation, linked frauds estimation, velocity fraud estimations
  • Integration to credit bureau data (Equifax, D&B, Experian)
  • Portfolio and limits management optimized lending decisions
• Application of advanced Artificial Intelligence / Machine Learning (AI/ML), cloud computing and data management techniques to consumer credit risk to include:
• Regression modeling
• Neural Networks
• Support Vector Machines (SVM)
• Random Forest
• Nearest Neighbor
• Decision Trees
• Cluster Analysis
• Survival Analysis
• Bayesian inference
• Principal Components analysis
• Markov chains
• Monte Carlo simulations
• Boosting algorithms
• Ensembling
• Inductive logic programming (ILP)
• Genetic Algorithms
• Discovery of data quality problems in consumer financial data in a fully automated fashion utilizing ILP (Inductive Logic programming) techniques
• Application of behavioral analysis models to predict different aspects of customer behavior and profitability at various stages of the relationship
• Optimization of collection and behavior based online marketing
• Development of an Analytical Data Store environment (including models predicting up-to-date state, e.g PD, LGD and EAD
• Development of STP based check fraud prevention system for consumer lending and check cashing company. Advanced algorithms to include: boosted multiple scoring models (AI, statistical algorithms and rule based with rules generated via ILP), velocity fraud control modeling with (Anomaly alerting, Trends prediction, Automatic decision in case of anomaly, Visualization, enabling on-line monitoring) components, profit optimization modeling as well as behavioral / consistency analysis of written check data and hand writing.

In all consulting and development engagements, Zoral Labs employs innovative consumer / SME lending decision algorithms advanced data management methodologies and scalable, multi-tier, component-based, STP architecture.

Card Services

• Automated, STP-based credit decisioning system for credit card issuers
• Credit Card Fraud Management Systems
• Anomaly detection
• Marketing Segmentation
• Customer Analysis
• Up Sell Analysis
• Cross Sell Analysis
• Real-Time - Credit Card linked – Advertisement / Rules Engine. Advertise and send promotional materials directly to retailers at the point-of-sale and print this onto customer receipts, whenever the retailer processes an authorized credit/debit card transaction. Personalized, targeted, consumer behavior based marketing & advertising campaigns platform with unlimited geographic scope.