EXECUTIVE SUMMARY

Financial Technology (FinTech), describes a business that competes with traditional banking methods and their legacy platforms by providing complimentary financial services, while making use of customised software and leveraging current technology; delivering an end-to-end process to the client. FinTech seamlessly integrates with sophisticted clients who are looking to be financially relevant in an ever increasingly digitised world; whereas Banks still struggle to keep up with FinTech as a result of the lack of innovation speed due to cumbersome legacy platforms.

OMEGA Analytics

The Omega platform was designed to provide financial SWOT analysis for self-employed SMEs trying to navigate the hazardous financial path they encounter when attempting to apply for mortgage finance; Post Royal commission. The analysis identifies application pitfalls which will guarantee a negative result from banks due to policy changes resulting from the introduction of Royal commission sponsored compliance; providing the would-be borrower the opportunity to identify credit impairments, adverse lending policies, little publicised compliance requirements; allowing them to implement the financial changes necessary to guarantee a successful mortgage application. Clients can be successfully profiled to ensure a positive result.

Financial Diagnosis

Financial Diagnosis ultimately tends to evaluate the way a company can overcome constraints regarding performance, solvency, autonomy, financial flexibility.

Financial Diagnosis involves assessing the financial health of the organisation, the strengths, weaknesses, opportunities and threats of financial management through which past, present and future risks from given financial situations can be estimated; resulting in the reduction of risk and improvement of results.

The term “diagnosis” comes from the Greek ”diagnostikos” which means ”able to know”. The term is borrowed from medicine, meaning an activity envisaging the recognition of certain diseases, based on their symptoms, in order to discover the causes and apply therapy necessary for the healing process. 

Traditionally speaking, financial diagnosis predicts organisational performance and solvency. 

The FICSGlobal Concept of Financial Diagnosis was developed in 1990 to provide a comprehensive analysis of the current financial status of an operating business.  It provides both qualitative and quantitative analysis of business operational sectors and provides a comprehensive financial reporting capability which enables the user to maximise their financial position at both personal and business levels. (This process of analysis can be aggregated to a consolidated position to satisfy a holding entity).

Financial Diagnosis analyses the current financial position of the person(s) involved and their business, undertakes financial modelling, analyses the quantitative data, applies ratio analysis to compare with industry benchmarks; and then forecasts the proposed financial position.

The System has been designed to a modular format and includes the following modules:

The Significance of Financial Diagnosis

Any business or corporation is subject to a process of decision-making which ensures its regulation in order for it to function normally. In the event where a financial disturbance appears within an organisation, steps need to be taken in adopting some regulatory decisions, starting from the causes. This is where the diagnosis analysis appears, with the role of identifying the causes that have adverse well-being of the organisation. Even if an organisation functions normally, the diagnosis analysis can be used with the purpose of evaluating the financial performance of the business.

Consequently, financial diagnosis can only offer a partial and specialised look at the business’s financial situation and performance, its goal being oriented on studying:

• the capacity to ensure immediate and long-term solvency, i.e. avoiding the risk of bankruptcy;

• the ability of maintaining a satisfactory level of performance, considering the resources engaged in the business activity;

• the ability to refinance the activity and accumulate enough resources to avoid financial risk.

Financial Diagnosis can be applied in various situations, taking on various traits:

• It becomes a strategic diagnosis when it follows the business’s strengths and weaknesses, both in using its economic potential and in relation to the external business environment.

• It is a valuation diagnosis when it contributes to clarifying some necessary elements for establishing the value of a business, in case of investment, mergers, etc.

• It is a crisis diagnosis when it intervenes in order to determine the financial  difficulties a business is facing to determine if the business is capable of maintaining or regaining its short-term solvency.