Germany-based global software company SAP SE SAP is making some serious efforts to popularize its innovative business suit SAP HANA in the global business arena. In a recent attempt to commercialize the product further, the company has launched “a new foundational offering” that is specially tailored to suit the needs of financial services and insurance companies.
However, despite the cheerfulness about the launch, SAP’s shares declined a marginal 0.4%, mainly because it was rather a lazy Tuesday for Wall Street, with stocks not rallying much on both Nasdaq and Dow index.
Inside the Headlines
Coming back to the news, the company’s latest application “SAP Cost and Revenue Allocation for Financial Products” will be deployed in banks and insurance companies to unlock additional avenues of profitability. Built on the super-successful SAP HANA platform, SAP believes the latest application will help financial personnel analyze most vast and complex corporate data to yield phenomenal results. This will not only help financial service personnel to better manage their risk process, but also provide them with a greater foothold to cope with the challenging market scenario.
Bankers and insurers often need to process data instantaneously for obtaining better insights about market situations to maximize investment returns. For them, SAP Cost and Revenue Allocation is the perfect solution as it quickly processes core data packets which will allow these financial institutions to stay ahead of their peers.
Guaranteeing a seamless transformation for new and existing clients, the company has ensured that the latest application is perfectly compatible with SAP Simple Finance solution, SAP Insurance Analyzer and other banking applications from the SAP family.
Our Take
A look at the reports of the research firm IDC and you will know that most financial houses are awaiting solutions that can consolidate their operations and risks. Unfortunately, most of them are unable to reach a standard level of integration due to a dearth of necessary technology.
This is where SAP Cost and Revenue Allocation comes into action as it can overcome these technological barriers and enhance performance of the financial institutions. Results from IDC survey shows that the time is just ripe for SAP to venture into the financial arena as half of the major banks and financial service companies still need a comprehensive IT platform for consolidating their operations. Moreover, stricter regulatory improvements and economic volatility calls for powerful predictive analytics tools that can provide a transparent picture about the future.
Going by recent market trends, the financial sectors are on the brink of a big-time transformation. We believe SAP Cost and Revenue Allocation is one of the many offerings from SAP’s portfolio that can usher in a new era in the financial service sector. This apart, SAP HANA platform’s incredible market traction ever since its launch in Feb, 2015 provides ample reason for betting on SAP.
SAP currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include Advent Software, Inc. ADVS, OptimizeRx Corporation OPRX and Aspen Technology, Inc. AZPN, all sporting a Zacks Rank #1 (Strong Buy).
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