Finastra's Fusion Invest Upgraded to Meet Annuities Market Demands

Finastra Enhances Fusion Invest for Annuities Market

Finastra, a global leader in financial services software, has recently unveiled new features within its flagship product, Fusion Invest, specifically tailored for the annuities market. This innovation is crucial as life and annuity carriers increasingly focus on diversified investment offerings to meet the evolving needs of consumers and regulatory demands.

New Functionalities for Annuities Carriers

The enhancements to Fusion Invest include the automation of dynamic hedging for annuity contracts, allowing for improved transparency and operational efficiency. These upgrades aim to streamline the functions of traders and risk management teams, making it easier to oversee different facets of the annuity lifecycle.

Fusion Invest is designed to integrate all elements of portfolio management into one cohesive platform. Its automation capabilities reduce the reliance on manual data entry and reconciliation, significantly minimizing errors in tracking collateral positions and valuations. This results in a more efficient operational workflow and ensures compliance with the latest derivatives processing regulations, such as Swift ISO 20022.

Julie Barthés, Vice President of Product for Treasury and Capital Markets at Finastra, emphasized the importance of these enhancements. She noted, “The complexities introduced by products like registered index-linked annuities (RILAs) necessitate a robust hedging and processing platform.” The new functionalities support carriers in coordinating front, middle, and back-office operations, from trade decision-making and risk monitoring to collateral management.

The Impact of Technology on Annuities Processing

Finastra's solution automates various tasks, including trade order creation and compliance checks, dramatically decreasing the time required to initiate trades. With real-time market data analysis and scenario modeling capabilities, Fusion Invest can pinpoint opportunities for maximizing returns while adhering to the specific parameters of annuity products, such as participation rates and crediting methods.

Wissam Khoury, Executive Vice President of Treasury and Capital Markets at Finastra, added, “This technology enhances portfolio management agility, fostering substantial value through optimized revenue growth and operational efficiency. The ability to adapt to the annuities market demonstrates the flexibility and strength of our platform.”

Furthermore, the solution's foundation on market-proven technology minimizes operational risks while leveraging advanced capabilities in annuities and dynamic hedging. It also supports carriers on their transition to cloud solutions, enhancing scalability and adaptability, which are essential in today’s fast-paced market environment.

Conclusion

The latest upgrades to Fusion Invest also come with additional features such as multi-underlying indexed-linked derivatives modeling, cross-asset hedging, and real-time analytics decision support. With this suite of tools, Finastra positions itself as a leader in providing innovative solutions that empower annuities carriers, ensuring that they are equipped to navigate the complexities of the financial landscape effectively.

As a recognized leader in financial services software, Finastra is trusted by over 8,000 customers, including 45 of the top 50 banks worldwide, in more than 130 countries. With products spanning Lending, Payments, Universal Banking, and Treasury Capital Markets, Finastra continues to co-innovate with clients, shaping the future of finance through cutting-edge solutions.