Processing Credit Applications
The Credit Management Platform supports the entire credit application process. Beginning with the loan origination process, the platform facilitates both manual data collection and importing customer data and transactional data from third-party systems. The platform then enables flexible data analysis and risk assessment (such as Basel II Credit Risk Rating), as well as multi-stage credit decisioning and credit pricing. Finally, the platform provides reporting and the administration of credit applications.
Data Collection and Management
- Flexible collection of all customer and transaction-related data
- Client, group, and role-specific user interfaces for all users (such as analysts, sales associates, managers, etc.)
- Automatic import of data (such as customer data, credit bureau data, loan collateral data) from internal and external data sources including core banking systems, data warehouses, and credit agencies.
Interfaces - Storage and display of related documents (such as PDFs of scanned applications)
- Management of credit applications in user, group or task-related work lists
Data Analysis and Risk Assessment
- Component-based architecture for developing, testing and simulating internal scoring and rating models and their deployment into the risk assessment process
- Calculation of Probability of default (PD), Loss Given Default (LGD), and Exposure At Default (EAD) for Basel II Basic and Advanced IRB-Approaches
- Support for user-defined quantitative and qualitative risk factors
- Analysis of balance sheets and income statements
Credit Decisioning and Pricing
- Support for any fully or partially automated credit decisioning process
- Rule-based handling of credit applications for multi-stage, manual approval processes
- Routing of applications among colleagues'work lists
- A logging of all reasons and decision paths for each credit decision
- Rule-based and risk-sensitive credit pricing
Reporting and Administration
- Credit memos (in PDF, MS Word format) automatically generated from templates based on information from credit applications
- Administration and monitoring of credit applications
- Early warning system-generated alerts (emails, logs, work lists) based on any event (e.g., maturity dates, exceeded limits)
- Publishing of results to any third-party system
Ancillary Components for Processing Credit Applications
In addition to the core functions related to processing credit applications, the Credit Management Platform offers ancillary components for the supervision of credit-related processes for Simulation and Stress Testing, an implementation module for ad-hoc queries, and batch processing up until risk management.
Process Management and Monitoring
- Graphical modeling of the process flow
- Flexible adaptation of the credit application process (such as status, status changes, manual handling of exceptions ensuring data persistence, etc.)
- Analysis and optimization of the credit process through monitoring (such as measuring and reporting wait time, work time, processing time, response time)
Simulation and Stress Testings
- Simulation of changed processes or rating models prior to deployment
- Flexible changes to the logic in the Model Authoring Platform, made by the business experts
- Upload of modified models into the simulation environment without impacting the models in production
- Perform simulations based on the bank´s entire credit portfolio or a subset of it
- Flexible definition and modification of stress test variables as a subset of all input parameters of an internal rating model
- User interface to set stress test variables (absolute and relative)
- Reporting environment for displaying the aggregated simulation results (such as distributions and transitions in the overall loan portfolio)
- Ability to easily add further simulation and stress test scenarios
- Basis for important credit decisioning to optimize a portfolio
Ad Hoc Queries and Batch Processing
- Manual and automated (through API) submission of credit applications
- Processing of ad hoc applications
- Batch processing for recurring assessment processes, such as periodic customer scorings
- Administrative module to start, administer and analyze batch runs
- User-defined handling of manual processing and approval processing
Risk Management
- Basel II compliant Credit Risk Rating (PD, LGD, EAD assessments)
- Calculation of EL (expected loss) and UL (unexpected loss)
- Calculation and aggregation of risk-weighted assets (RWA) and regulatory capital
- Configurable and expandable risk management reporting, i.e., in order to identify, for example, regional and industry-specific risk groups
- Implementation of stress tests for credit risk management
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