This morning's WSJ headline is, "Big US Banks Face Tougher Standards. New Capital Requirements Aim to Reduce Broad Economic Risks."
While the article focuses on new Federal Reserve equity requirements for large banks, the underlying theme is a push to reduce the risk of too-big-to-fail financial institutions collapsing and creating shockwaves in the economy.
Along with capital requirements, reducing that risk requires executives to have better,real time visibility into their extraordinarily complex international operations and constantly evolving financial product lines. That is difficult when visibility into an enterprise IT system resembles a "ball of mud."
Sapiens Decision is on the leading edge of large banks testing "The Decision Model" as a tool to gain greater visibility and control over their enterprise IT systems. The $3 to $5 million cost paid to Sapiens for a Decision license is a rounding error for a large financial institution.
Decision proved to be very valuable for FreddieMac. The success of that initial implementation has at least five other banks testing Decision at some level. If those implementations also generate a solid ROI, a future WSJ headline could be, "Regulators Push Big US Banks to Reduce Risk by Improving Enterprise IT Visibility."