Integration of the SuperTrump calculator and automation of financing scenarios calculation

GE Capital Canada

Scroll down

Objective

!

FULLY AUTOMATING THE FINANCIAL CALCULATIONS OF AN EQUIPMENT FINANCING TRANSACTION, INCLUDING THE CALCULATION OF PROFITABILITY OF EACH PROPOSAL

Result

»

Development of a communication protocol and mechanism between the company's servers and a financial calculation service (SuperTrump) to execute all financial calculations and calculate all possible scenarios related to a financing transaction.

Benefits
1.

Accurate performance appraisal (ROE) of each financing proposal

2.

Increased Sales Profitability, by providing in real time the financial ratios necessary for the decision

3.

Accelerating the Financing Cycle

4.

Almost total reduction of calculation errors despite increased productivity

 

Context

GE Capital sales representatives used the SUM ERP to calculate financing scenarios (terms) and make proposals to their clients in 80% of cases. The 20% other cases representing the complex cases, like with payment exceptions, were entrusted to the experts in financial calculation of the Credit Approval department. The approval process of these complex cases greatly delayed the sales process and required a lot of resources.

However, and although the representatives were required to have a solid foundation in financial mathematics, there were still frequent miscalculations in the other 80% proposals which delayed enormously the sales process.

Finally, in all cases, there was a lack of critical information; the calculation of the potential return on each proposal (ROE). Since this is equipment financing, we are talking about ROE (Return on Equity) rather than ROI (Return On Investment).

Objective

  • Improve sales force productivity
  • Calculate the potential return on each financing proposal
  • Decrease the number of calculation errors in financing proposals
  • Totally automate the creation of equipment financing scenarios

Challenge

  • Calculate 100% of financing scenarios including complex cases and cases with payment exceptions
  • Completely automate the process of calculating financing scenarios so as to retroactively extrapolate financial scenarios from a targeted ROE, by reverse engineering

Solution

Integration with SUM, a Windows application, of the SuperTrump financial calculator, in SaaS mode, with real-time calculation functionality

Comprehensive automation of the financing scenario calculation process

Analystik collaborated with SuperTrump to develop an API that did not exist (SuperTrump being a Windows Desktop application) and we had to develop as well an asynchronous communication API ourselves so that SUM, our equipment financing ERP running on hundreds of desktop workstations, could communicate with SuperTrump.

SuperTrump and Analystik have jointly defined the communication protocols and the exchange attributes and, executed as well as the API validation and performance tests.

Accelerate Now!

Key Functions

  • Calculation of Financing Scenarios including complex cases such as payment exceptions
  • Calculation of ROE (Return On Equity) for each financing scenario with:
    • Latitude in the approval process according to the targeted ROE
    • Calculation of the tolerance margins for each financing scenario related to defined ratios and business rules

Technologies

ASP.Net - .Net C# - WPF

SQL

Impact

Eliminating the bottleneck caused by financing requests that required a manual calculation

Benefits

  • Accurate performance appraisal (ROE) of each financing proposal
  • Increased Sales Profitability
  • Accelerating the Financing Cycle
  • Almost total reduction of calculation errors despite increased productivity

Conclusion

In a high-competitive and high-risk environment, reducing the production time of financing proposals and being able to extrapolate terms from their targeted ROEs (Return On Equity) is a powerful competitive advantage and but it also provides an assurance of profitability.

Other Business Cases