Cutting Edge Technology by VizuaMatix is Changing Risk Management in Banking
The VizuaMatix leadership. From L to R: Manoj Mallawaarachchi (CTO), Pamuditha Karunarathne (COO), Theekshana Kumara (Founder & CEO), Tharindu Abeydeera (Deputy CEO), Sujith Kulasekara (VP Data Science)
Imagine if you had the power to read the future with unprecedented accuracy. Suddenly, you’ll no longer have to ever worry about taking risky decisions because that risk no longer exists. Throughout the ages, humanity has long sought this power. Now with advances in technology, we finally have this power. Today, you’ll find advanced AI systems capable of analysing vast amounts of data to make predictions of unprecedented accuracy. This opens up numerous possibilities for several industries. Particularly in the financial sector, where VizuaMatix is now making this powerful technology more accessible.
The world of banking and finance revolves around the uninterrupted flow of money. To ensure this, it’s essential to keep risks to an absolute minimum. Hence, the need for cutting-edge technologies in the world of finance. VizuaMatix has answered this need with its latest Financial Risk Management System or ‘vxFRMS’. Speaking to Arteculate, Founder and CEO of VizuaMatix, Theekshana Kumara, and Deputy CEO of VizuaMatix, Tharindu Abeydeera shared how the system was built to help the banking sector enter the digital future. Understanding the power of vxFRMS
In the world of banking, financial risk management is categorized into Reactive and Proactive measures. With vxFRMS, banks will now be able to visualize risk at the click of a button, while also being provided with workflow management and predictive analysis tools. “In layman’s terms, the FRMS is capable of planning for future credit risk after considering both reactive and proactive elements to provide a holistic credit risk management solution,” expresses Tharindu.
Tackling reactive risks with vxFRMS
Reactive risk management focuses on the events that have already happened, the historical transactions. “Based on those transactions, the financial risk of a customer is calculated using a weighted average system. Traditionally, the accuracy of this risk score depends on the coverage provided by the early warning trigger database,” Theekshana explains. This technique is reported to be common at numerous financial institutions and is used extensively in various Early Warning Signal (EWS) management systems. However, vxFRMS breaks the traditional boundaries by using Artificial Intelligence to improve the accuracy of EWS rating.
How does vxFRMS handle proactive risks?
vxFRMS can assist all levels of management to manage their risk segments effectively and proactively by providing Early Warning Signals of risky financial sectors, operational regions, operational branches, and individual customers.As a counterpart to the above, proactive risk management is for how borrowers’ risk is predicted using their behavioural patterns. The power of Machine Learning and Deep Learning plays a key role in this process. Utilising these technologies, vxFRMS predicts how payments are expected to arrive (paying proportion) and calculates a risk factor per client based on the customer’s historical transactions and various other internal and external data related to the financial risk of the customer. “A classic example for this would be the risk assessed for loans using Non-Performing Asset (NPA) prediction,” Tharindu goes on to clarify.
Built on VizuaMatix’s track record of excellence
VizuaMatix began the development of bespoke software solutions over 13 years ago. Since then, the company has grown its portfolio of clients with world-class software made possible by its team of highly competent local talent. In that time, VizuaMatix made a name for itself, building telco-grade solutions for local telecom operators. “This required us to adopt sophisticated technologies to develop mission-critical and high-performance solutions with an allowable downtime of less than 30 minutes per year,” conveys Theekshana Kumara, Founder & CEO of VizuaMatix.
Today, their advanced solutions cater to users and service providers alike – ranging from 4G/5G data and bandwidth management to comprehensive analytics platforms and B2C self-care applications. Living up to their motto of “innovation through dynamism”, the company took its first step outside the telco niche, starting with the banking sector of Sri Lanka.
Tapping into its expertise in building advanced technology platforms, VizuaMatix went ahead with its efforts to enter the banking and finance industry. Ultimately, these efforts paid off with the end result being the FRMS. It’s a system that offers advanced features expected by financial institutions from similar systems by global giants. Both Theekshana and Tharindu proudly state, “It’s another shining example of Sri Lankan ingenuity where we’ve shown we can produce innovative tech products and compete with global giants.”
Bringing the banking sector into the digital age
Tharindu Abeydeera, Deputy CEO of VizuaMatix (L) and Theekshana Kumara – Founder & CEO of VizuaMatix (R)
Already, a leading commercial bank in Sri Lanka has become the first adopter of vxFRMS. Many others are now following their lead. Thus, by embracing this homegrown innovative system and its unique data-driven approach to predict credit risk, the industry is entering the digital age that will strengthen and enhance processes that will open up new opportunities for business success.
Another milestone for VizuaMatix was the onboarding of KPMG as a knowledge partner in March 2021. The auditing giant is said to have thoroughly evaluated the potential of vxFRMS before placing their confidence in the system. “The partnership with KPMG has allowed us to open many doors in the banking and finance industry,” says Tharindu. Theekshana added that through this partnership, VizuaMatix is looking at avenues to introduce vxFRMS to more financial institutions within Sri Lanka and across South Asia.
Looking ahead, the team at VizuaMatix has a clear vision for the road ahead. Its efforts are poised to bring home-grown innovative products that harness the power of advanced technologies rivalling that of global giants and helping local organisations enter the digital era. To quote Theekshana, “We aspire to be the changemakers in Sri Lanka with vxFRMS – to bring our nation up to speed with the rest of the world.”
Article originally featured on Arteculate