crspl.info@careedge.in
Category:
Consulting
Date:
10 March 2023
Implementation in Sri Lanka – LOS & CLM

Client Profile

The largest private bank in Sri Lanka adopted CARE Risk – Credit – (Internal Ratings, Capital Charge, Limit Monitoring, Other Regulatory & MIS Reports)

Objective

To automate the loan appraisal cycle, real time monitoring of limit and exposure with required MIS.

Problem Statements

Manual handling of loan appraisal.
No proper due diligence process in granting loan.
Missing RAROC process.
Continuous changes in the reporting format of Internal reports generated by VaR approach.
Cannot support multi facility offered to customer.
Difficulties in launching new product offering.
Missing Real time exposure monitoring .
No warning message on breach of permissible drawn of limit.
No provision to maintain Financial or non-financial collateral.

Solutions

The bundled solution offered automation to Lending and underwriting process.
Efficient user audit trail, controls, workflow, traceability, authorization and hierarchy approvals mapped as per bank’s policies with exception handling.
Serial and Parallel workflow resulted in improved TAT by 20%.
With multiple new products Bank was able to grow the assets book substantially.
Sharing of collateral and charge linkage was possible allowing bank to offer extra credit to deserving borrower.
Parametric Limit Monitoring Module which generated alerts and notifications for exception management, thus enabling bank to effectively monitor the credit portfolio in line with policies formulated by management.
The whole computation process is automated using a trigger-based approach.

Benefits

Second highest valued application within bank after CBS.
Enables bank to manage the Credit Portfolio effectively and mitigate risks in advance.
Enables bank to choose best underwriting process to have healthy portfolio.
With centralized collateral management, accurate picture of borrower liability.
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