FPT Partners with Oracle to Promote Financial Risk Management Solutions in 6 Major Markets
At the recent FPT Techday 2024 event, FPT Corporation and Oracle signed a memorandum of understanding to implement the Oracle Financial Services Analytical Applications (OFSAA) system across six major markets in the Asia-Pacific region. This expanded collaboration between the two leading technology companies aims to provide international-standard solutions for risk management and finance & compliance, alongside addressing critical issues in the finance and banking sectors.
Specifically, FPT and Oracle will deploy the OFSAA system to support banks and financial institutions in activities such as anti-money laundering, asset-liability management, liquidity risk management, internal capital transfers, multi-dimensional profit allocation, and meeting International Financial Reporting Standards (IFRS). These efforts will be focused on six strategic markets: Japan, Hong Kong, Malaysia, Indonesia, Thailand, and Vietnam.
Mr. Dao Hong Giang – Director of Finance & Banking Sector, FPT IS, FPT Corporation, and Mr. Mark Atherton – Global head of financial services analytical and compliance solutions at Oracle, signed the agreement on behalf of their companies.
Under the agreement, Oracle will provide products and services, and work closely with FPT’s team of technological experts, who have comprehensive knowledge of the banking sector’s challenges, to implement the OFSAA solution for clients.
Currently, according to a mutual evaluation report by the Asia-Pacific Group on Money Laundering, the market faces numerous shortcomings and gaps in anti-money laundering (AML) and counter-terrorism financing, significantly impacting global economies, with an estimated 5% of the world’s GDP, equivalent to $2 trillion, being laundered annually. In Vietnam, the Basel Committee on Anti-Money Laundering evaluation places the country at a relatively high risk level, ranking third in the region with a score of 7.08/10.
The implementation of the OFSAA system is a crucial foundation that allows financial organizations to measure and address internal administration needs regarding risk and finance, as well as broader international banking regulations such as: The Basel Accords on regulations and supervisory standards for bank operations, which help protect the global financial system; IFRS; Recommendations and standards from the Financial Action Task Force (FATF)… In particular, the solution helps modernize and strengthen AML, Know Your Customer (KYC) programs, and sanctions measures, supported by Artificial Intelligence/Machine Learning (AI/ML), graph analytics, and advanced analytics. As a result, it helps banks ensure profitability, manage risk, and ensure compliance transparently, reducing management and operational costs, while gaining deeper insights into customer behavior.
FPT collaborates with Oracle to promote financial risk management solutions in 6 major markets.
Mr. Mark Atherton, Global head of financial services analytical and compliance solutions, said: “Our OFSAA product line performs the processing, categorisation, and selection of the necessary data to analyze, understand, and report on issues related to performance, risk, compliance, and customer insights. We are ready to work with FPT to deploy solutions that address anti-money laundering and financial fraud prevention demands – significant concerns in Vietnam and developing countries in general. In the near future, OFSAA will continue to expand our long-term partnership with FPT and is committed to bringing OFSAA products not only to Vietnam but also across the entire Asia-Pacific market, where rapid development and growth are taking place.”
Mr. Tran Dang Hoa, Chairman of FPT IS, FPT Corporation, emphasized: “We are honored to be the first technology company in Vietnam to collaborate with Oracle in deploying the OFSAA system across the Asia-Pacific region. FPT has over 30 years of experience working comprehensively with the financial-banking sector, solving many specific challenges and building core systems. In the fields of risk, finance, and compliance, FPT has implemented nearly 30 large and small projects for nearly 20 banks in Vietnam. Becoming a major partner of Oracle in deploying the OFSAA system across multiple countries is an important milestone that affirms FPT’s capabilities to assist banks in complying with global financial regulations.”
This is an important groundwork for FPT to continue expanding its partnership with Oracle, aiming to become a leading technology partner for international clients. At the same time, FPT continuously develops and broadens its ecosystem of products and services Made by FPT for the financial and banking industry, ready to integrate and grow with international systems, addressing the specific needs of each customer, and enhancing management standards and business practices within organizations, Mr. Hoa affirmed.
In 2018, FPT completed the risk management database framework project for a major bank in Vietnam, providing a solid foundation for the bank to effectively implement projects that serve business needs, risk management, and the application of Basel II standards. In 2021, FPT partnered with PwC and Oracle to provide MB Bank with software licenses for the OFSAA application and implement a system that complies with capital adequacy ratio regulations under Basel II and manages ICAAP capital adequacy in accordance with Circular 13/2018/TT-NHNN.
From 2021 to 2024, FPT and Oracle have continuously collaborated to implement the Financial Crime and Compliance Management (OFSAA FCCM). Projects at MB Bank, Techcombank, Asia Commercial Bank (ACB), and Orient Commercial Joint Stock Bank (OCB) have progressively gone into official operation, either partially or fully. Notably, in 2024, the project at MB Bank, jointly implemented by FPT with Deloitte and Oracle, completed all solution components for anti-money laundering and fraud risk management. This has enabled MB Bank to accurately identify and assess customers and transactions that exhibit warning signs and suspected fraud or money laundering, thereby enhancing MB Bank’s capabilities in financial crime prevention.
Oracle Financial Services Analytical Applications (OFSAA) includes modules for integrated risk management, performance management, customer insight, and compliance management, enabling financial institutions to assess performance based on risk, build a risk management culture, lower compliance costs, and gain deeper insights into customer behavior. Key applications within the OFSAA product include Enterprise Risk Management, Governance, Risk, and Compliance (GRC), Enterprise Performance Management (EPM), and Customer Insight tools specifically designed for the financial services industry.
