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Banking Industry Solutions

Banking Industry Offerings

SME Credit Risk Rating Solution

Banks and financial institutions are migrating from an individual’s opinion based credit review process toward a systematic and scientific credit process with an emphasis on objective inputs. The main reason for this shift is the need for faster, more accurate, uniform and timely credit decisions with lower origination cost. Underwriters must balance the need for thorough and consistent risk assessment with high-quality credit decisions. This can only be possible when highly productive and easy to use tools are provided to them to help them in their decision-making.

SME Credit Risk Rating Solution

Banking IT Challenges

Business Challenges

Today, Banks want to enhance the existing SME credit processing systems with additional features such as,
  • Comply with Basel II business requirements
  • Include business functions of collateral management
  • Incorporate the loan loss information of special loans (non-performing loans)
  • Creation of risk rating engine
  • Provide data feeds for management reporting
  • Interface with wholesale credit data warehouse
From a technological stand point, the existing systems are not scalable, have maintenance issues and not confirming to Basel II standards.

What We Offer

Kumaran Systems Inc. has developed credit data management systems for SME customers (small and medium enterprises). The functional capability of the software supports credit origination, adjudication, and operations across the SME loans apart from calculating PD and LGD.

SME risk rating provides end to end automation of credit risk environment for SME borrowers i.e. credit risk origination, analysis, assessment, risk measurement, risk rating, pricing, adjudication and Non-Performing Assets management together with credit risk review, administration and monitoring, all this in accordance with bank's credit risk policy. Thus SME risk rating becomes a unique application tool that provides complete and most flexible credit risk management solution.

This SME risk rating methodology can be implemented in most banks to allow their risk managers to objectively as well as subjectively assess an obligor's strengths and weaknesses.


Benefits of SME Credit Risk Rating Solution

  • Automates credit origination, risk rating, credit approval process, risk administration and monitoring functions and also management of Non-Performing assets
  • Faster and better credit decisions made
  • Helps improve Return on Capital (ROC) for banks
  • Improves customers turn-around time
  • Provides early warning reports
  • Makes use of the latest technology and designs, and takes advantage to minimize cost of development of the service



Nesbitt Burns Inc, Toronto, Canada

Providian Financials, US

Citibank, US

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