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Processing Credit Applications

The Credit Management Platform supports the core credit application process. Beginning with the loan origination process, the platform provides for manual data collection and the importing of customer data and transactional data from third party systems. The platform then allows for flexible data analysis and risk assessment (such as Basel II Credit Risk Rating), as well as multi-stage credit decisioning and credit pricing. The functionalities also include reporting and the administration of credit applications.

Data collection and import

  • Flexible collection of all customer and transaction-related data
  • Client, group, and role specific front-ends  for all users (such as analysts, sales associates, managers, etc.)
  • Automatic import of data (such as customer data, credit bureau data, collateral data) from internal and external data sources (such as core banking systems, data warehouses, credit agencies, etc.)
    Interfaces
  • Storage and display of document attachments (such as PDFs of scanned applications)
  • Manage applications in user, group or task-related work lists

Data analysis and risk assessment

  • Modeling Framework for developing, testing and simulating internal scoring and rating models and their deployment into the risk assessment process
  • Calculating probability of default (PD), loss given default (LGD), and exposure at default (EAD) for Basel II IRB-Approaches
  • Support for any quantitative and qualitative risk factors
  • Analysis of balance sheets and income statements

Credit decisioning and pricing

  • Supports any fully or partially automated credit decisioning process
  • Rule-based routing of applications for multi-stage manual approval processes
  • Transmission of applications among work lists
  • Logging of all reasons and decision paths for each credit decision (“reasoning” components)
  • Rule-based and risk-sensitive credit pricing

Reporting and administration

  • Template-based generation of documents (e.g. PDF, MS Word) from credit applications for automated credit memos
  • Administration and monitoring of credit applications
  • Early warning system generates alerts (emails, logs, work lists) based on any event (e.g. maturity dates, limits exceeded)
  • Delivery of result data to any third-party system (publishing)

Cross-Process Components for Processing Credit Applications

In addition to the core functions related to processing credit applications, the Credit Management Platform offers cross-process components:

Process management and monitoring

  • Graphical modeling of process flow
  • Flexible adaptation of the credit application process (such as status, status transitions, user actions, maintaining persistence, etc.)
  • Analyze and optimize the process using process monitoring (such as measuring and reporting wait times, execution times, processing times, reply times)

Simulation and stress tests

  • Simulation of changed process or rating models prior to deployment
  • Flexible changes to the logic in the Modeling Framework, made by the business experts
  • Upload modified models for simulation into the simulation environment without impacting the models in production
  • Perform simulations based on the bank´s entire credit portfolio or a partial amount
  • Define and modify stress test variables as partial amounts 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)
  • Flexible addition of further simulation and stress test scenarios
  • Important foundation for decisioning to optimize a credit 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 unit to start, administer and analyze batch runs
  • User-driven manual processing or approval process

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 regional and industry-specific risk groups
  • Implementation of stress tests for credit risk management
  • Software für Implementierung, Test und Wartung interner Scoring- und Ratingverfahren