Actuaries: the new secret weapon of the banking and financial sector | Finity Consulting | Actuarial and Insurance Consultants

The skills and experience of actuaries are fundamental to the insurance industry. Today, Finity harnesses this powerful resource for banking and finance.

Traditionally, actuaries are best known for their work in the insurance field, helping to design and price insurance policies by analyzing mathematical, statistical, demographic, financial and economic data. The rise of artificial intelligence (AI), automation and machine learning puts new tools within their reach, expanding the scope of their role, as well as the areas where their skills add value. Therefore, actuaries are uniquely positioned to help balance risk, uncertainty, and opportunity in banking and finance organizations.

“Actuaries are trained in quantitative skills, including statistics, math, economics and accounting,” says Sen Naragajan, Finity’s banking and finance practice leader.

“They take an end-to-end view in their analysis, looking at how a model is likely to respond to changing influences. They also work on the principle that the technically correct answer may not be the correct answer in practice. Their ability to exercise good judgment is key to navigating the complex and rapidly changing demands of banking and finance,” he adds.

Actuaries are also trained to work in a highly regulated financial environment. “They are familiar with the need for controls, governance and compliance,” Sen says. “They also understand that financial model development can be as much about people, processes and executives as it is about technicalities.”

A unique actuarial approach

Actuaries develop and support all of the strategic analyzes that underpin Finity’s banking and financial advisory services.

“This actuarial approach gives us – and our clients – a head start,” says Sen. “Sophisticated business forecasting models allow us to create business strategies and plans that go beyond current market conditions to help them overcome challenges and take advantage of transformation and growth opportunities. »

The actuarial contribution is used to improve Finity’s full range of banking and financial services:

Transformation of operations
Finity works with senior management and boards to support their transformation goals. End-to-end services cover targeted transformation roadmaps, implementation, consulting and continuous improvement plans.

Pricing strategy and optimization
By applying both behavioral modeling and risk and value-based pricing, Finity develops pricing solutions that evolve with client needs. An effective strategy and governance framework also supports portfolio distribution, design, and management to improve business performance.

Customer and product information
Today’s consumers expect personalized digital experiences. A deeper analysis of product performance and customer behavior allows you to drive sales and loyalty by meeting or exceeding their expectations. “Actuarial analysis of profitability, industry trends, lifetime value, and other factors can also help manage disruption from neo-bank lenders and tech companies,” Sen says.

Automating
Finity combines the power of cutting-edge AI and machine learning with extensive lending experience to automate lending, call center and collections processes. “Automation can quickly lead to benefits such as consistent processes, improved customer responses and reduced operational costs,” says Sen.

Allocation of risk and capital
By applying a business lens to capital management, Finity supports risk appetite, business and strategic objectives. Finity has deep expertise in calculating and forecasting stress testing and provisioning of APRA banks’ capital requirements. Finity recently leveraged its expertise in physical perils and climate risk to help banks implement the CPG229 and APRA’s CVA. “The team can help you understand your exposure to climate change and develop a sustainable climate risk strategy,” says Sen.

Financial direction
The actuarial approach refines financial forecasts and profit analysis. “Our team makes complex simple,” says Sen. “We can provide funding cost, creditworthiness and balance sheet advice as practical, actionable information specific to your situation.”

Compliance and regulation
Regulations are becoming increasingly complex and demanding. “Finity can help you navigate regulatory changes and identify the financial impact for your customers and your organization,” says Sen. “We can also help you monitor and manage these processes in the future.”

Analytics, Information and Modeling
Finity has the tools and resources to meet your AI, machine learning, and data science needs, as well as data architecture and governance. Tailor-made data analytics solutions can also improve day-to-day processes and business results. “We give our customers peace of mind by validating their technical models and sharing best practices,” says Sen.

To learn more about Finity’s Banking and Finance team, click here

Contact Finity’s banking and finance practice to find out how your business can benefit from the actuarial approach.

Sen Nagarajan

Telephone: (03) 8080 0972

Email: [email protected]

Sunil Patel

Telephone: (02) 8252 3300

Email: [email protected]

Ruwan Wijetunga

Telephone: (02) 8252 3300

Email: [email protected]

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