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Banking Industry Solutions

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Business Challenges

Banks face some compelling business reasons for upgrading their commercial risk ratings systems:

  • Credit heads and general managers need a system-driven rule-based automatic loan approval process.
  • The credit applications are scattered and there is no centralized system that shows the status of the proposals (whether sanctioned, rejected, or in process) at the click of a mouse.
  • There is no centralized system to instantly view which loan officer or sanctioning authority (adjudicator) is handling any given proposal.
  • There is no mechanism to store or retrieve the rejected or deferred proposals for resubmission. When such proposals are processed from the beginning or when considering renewal or enhancement proposals, prior year data has to be re-entered by the loan officers. There is no provision for auto-population from the existing credit. This involves duplication of work and loss of valuable staff hours.
  • There is no mechanism to identify, accept, or reject a proposal based on eligibility norms. There are instances where the officers and managers spend considerable time and then reject the proposal based on pre-requisites or basic eligibility norms. That is, the knockout conditions are not verified in the initial stages.
  • In some proposals the ownership details are not filled up or incomplete. There is no automated system to validate whether ownership details are completed or not.
  • Loan officers use cut and paste commands to copy prior year information in the current year proposals. This leaves scope for a lot of errors.
  • The credit proposals are submitted without providing vital information, for example, regarding balance outstanding in the accounts. In some cases, old balances are furnished. There is no centralized mechanism to gather the outstanding balance amount from other systems in the bank automatically.
  • Environment risk is not assessed in the credit proposals.
  • There is no mechanism for automatic generation of alerts and email notifications to the specific users depending on the operations done.