ROA Optimization

Our ROA Optimization Product

Active Balance Sheet Management (Banking Book) is sub-optimally handled. This impacts Return on Assets (ROA).

For a financial institution, every 0.1% Change to ROA equals $1 million per $1 billion in Assets. The impact if small changes to ROA is therefore huge. Multi-period stochastic optimization such as asset liability management (ALM) are a NP-Hard problem. Quantum computing has demonstrated advantages over classical methods in solving such problems. Standard Classical Optimization algorithms take too long even to find good solutions.

Combining the classical risk base with quantum annealing, we leverage the power of Quantum Computing to derive optimized samples of potential optimal solutions for Asset Liability Management to help Financial Institutions improve their Return on Assets (ROA) on their Banking Book.

We use a three pronged approach that includes applying Quantum with proprietary algorithms, improving cashflow matching, optimizing risk/return for existing portfolios, and identifying future portfolio mix.

Why our Optimization Solution?

Unique Hybrid Approach. Get the Quantum Advantage.

  • Powerful Hybrid Approach = Improved ROA
  • Superior returns versus standard classical approaches
  • A great way to improve profitability in a low interest environment
  • Test our solution by using our Simulation Engine
  • Easy to implement

Unique Quantum Hybrid Approach

Classical + Quantum = Higher ROA

Improved ROA

Our Hybrid approach leverages the power of Quantum to drive higher ROA

Three Pronged Approach

Our approach includes Cash Flow Matching, Optimizing risk/return for existing portfolio and identifying future portfolio mix.

Easy to Implement

Simulation engine to test drive our solution. Simple API’s to support integration.