CetoLogic Partners with Strategic Analytic Solutions to Provide Asset Liability Management Consulting Services


ATLANTA, May 21, 2015 – CetoLogic, a leading provider of software and analytics for financial institutions and retailers, announced today that it has partnered with advisory firm Strategic Analytic Solutions to provide asset liability management (ALM) consulting services that help financial institutions better prepare for the impact of interest rate movements and the subsequent impacts to liquidity, core deposits and other market risks. Consulting services provided include capital optimization; non-maturity deposit measurement and modeling; and distressed debt management.

Capital optimization helps a financial institution determine the level of capital it needs to remain compliant with examiners. Many smaller institutions generally hold more capital than is necessary due to resource constraints, lack of modeling tools or access to the analytical expertise required to determine optimal capital levels. CetoLogic leverages the power of analytics to help these institutions determine the optimal level of capital they truly need to reserve to remain compliant, even under the most stringent rules, freeing up working capital for alternative investments.

Through this partnership, CetoLogic also helps financial institutions measure and model the behavior of its non-maturity deposits (NMDs), which play a critical role in the profitability and interest rate risk management of depository institutions. These deposits account for nearly 58 percent of the industry total funding, directly impacting an institution’s ability to lend, invest and drive earnings. Given the projected interest rate increase, many NMDs are in jeopardy of leaving the balance sheet, posing a serious threat to an institution’s profitability. CetoLogic identifies and quantifies the rate of decay of NMDs to reveal how dependable this source of income is and the impact on liquidity ratios based on financial institution specific data.

Distressed debt management helps financial institutions set competitive prices for their discharged debt, providing them with an additional source of capital from an often overlooked source of funds. CetoLogic’s analytics help a financial institution determine how much capital can be extracted from its non-performing assets.

“Interest rate increases are imminent, so financial institutions must be prepared for the inevitable impact on their balance sheet,” said Douglas Ceto, president and CEO of CetoLogic. “Partnering with Strategic Analytic Solutions enables us to provide scalable and powerful ALM services that help financial institutions better manage their risk, increase net interest margins and achieve long-term, sustainable and profitable growth despite market uncertainty.”

“Each financial institution is unique; having a distinct strategy, asset mix, product selection, customer base and risk profile that differentiates it from others,” said Edgar Ortiz, president and CEO of Strategic Analytic Solutions. “The profitability and survival of each one of these institutions are largely determined by how well their boards and senior management can balance current and potential earnings while maintaining adequate liquidity amidst intense market completion, growing regulatory complexity, new technologies and ever-present interest rate risks.”

About Strategic Analytic Solutions
Strategic Analytic Solutions is an independent advisory firm established in 2007 that specializes in providing risk management advisory services to community banks and credit unions. The company’s missions is to provide customized, data-driven and affordable risk management services to help community banks and credit unions identify, measure and control risk. For more information, visit www.strategicanalyticsolutions.com.

About CetoLogic
Atlanta, Ga.-based CetoLogic provides software solutions and analytics to financial institutions and retail organizations. CetoLogic proudly services the needs of more than 1,500 clients in 50 states and Canada by providing “Smart Solutions that Make Dollars and Sense.” CetoLogic is the designer of C3 Financial, a web-based cash forecasting and management software. CetoLogic also pioneered Deposit Reclassification, a retail sweep program designed to eliminate reserve balances. CetoLogic’s solutions improve earnings, efficiencies, risk management and operations.