Leading bank in the Middle East revolutionizes banking, improves efficiency by 40% with rt360 Enterprise Risk Management
About The Client
The client is a leading bank in the Middle East committed to revolutionizing the way banking activities are approached. The bank aligns their efforts with the developmental initiatives outlined by the government, particularly in the housing sector.
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Head office and branch locations
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No. of departments
Up to
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No. of users
80 -
80
KRIs spread across various departments/bank-level indicators
Summary
The bank wanted to automate their entire risk management process, covering credit, liquidity, and operational risk aspects. BCT Digital implemented the rt360 Enterprise Risk Management suite at the bank’s premises through close collaboration with key stakeholders and diligent execution. Today, the bank is well-positioned to achieve their risk management objectives and drive sustainable growth in an increasingly complex business environment.
The challenge:
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Subjective, inconsistent, and time-consuming manual risk assessment process
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Version control issues, data integrity risks, and limited collaboration. Potential compromise of the accuracy and efficiency of risk management processes due to risk and control registers being maintained in spreadsheets
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Lack of defined metrics in quantitatively assessing and measuring risks consistently, impeding effective risk mitigation strategies
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Inefficiencies, increased risk of errors, and delays in decision-making due to the time-consuming nature of gathering and analyzing data through manual tracking and reporting
Transformation:
The bank worked together with BCT Digital on implementing the rt360 Enterprise Risk Management suite, encompassing Operations Risk Management, Asset Liability Management and Credit Risk solutions, along with the following business-critical activities:
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Loss event capture screen for different departments (LDC)
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Capturing and analysis of loss and recovery data
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Capturing of near-miss events
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Mapping internal loss data with business lines and loss events
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Enhanced consistency through central libraries for risks and controls
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Risk control and self-assessment (RCSA) to perform risk assessments, assign control measures per indicator, and conduct periodic assessments
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Streamlining and standardization of operational risk
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Identifying and assessing key operational risk (KRI) exposures
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Configuring standard & customizable reports for analysing losses by business lines and event types
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Alert mechanism and warning escalation workflow in case of breach of thresholds
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Identifying and assessing the various risks faced by the bank, including interest rate risk, liquidity risk, credit risk, market risk, operational risk, and reputational risk
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Developing quantitative models and analytics to measure and analyze the bank’s exposure to different risks
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Setting thresholds for key risk metrics, such as net interest income, liquidity coverage ratio, and economic value of equity, to ensure risks remain within acceptable levels
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Establishing robust data management systems and processes to collect, validate, and analyze data from internal and external sources
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Stress testing and scenario analysis to assess resilience under adverse economic conditions
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Ensuring compliance with regulatory requirements and reporting standards related to ALM, including Basel and local regulatory guidelines
Results:
Today, the bank uses rt360 EWS to monitor credit exposures above INR 25 crores, which makes 70% of its loan portfolio. rt360 EWS has strengthened its ability to monitor accounts and ensure asset quality.
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rt360 EWS enables 100% compliance with RBI and DFS mandates
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Exceeds the expected regulatory coverage of INR 50+ crore exposure
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935+ corporate customers with a total exposure of INR 1.46 lakh crore are proactively monitored, along with 360-degree borrower profiling
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Customized dashboard and reporting for senior management
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End-to-end automation of data collection, alert generation and workflow configuration for faster decision-making
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Tremendous savings by automating CRM forms processing
We highly value our partnership with BCT Digital, they have enhanced our ability to better serve our customers and offer competitive prices while at the same time significantly improving our profitability across product lines.
Results:
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~40% improvement in operational efficiency
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Aggregation of risks at the enterprise level consolidating diverse risk data from various business units
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Improved regulatory compliance enhancing organizational processes and practices to align with relevant laws and regulations
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Optimized and streamlined procedures to expedite the identification, analysis, and mitigation of risks, enhancing organizational agility and responsiveness – leading to improvement in TAT for risk assessment processes
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Time-consuming, manual ERM processes replaced with highly automated workflows
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Integrated with ERP, Core Banking, Asset Liability Management System, Capital Computation System etc. for data collection
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Improved accuracy and consistent results by implementing standardized methodologies, and promoting a systematic approach to enhance the precision and uniformity of risk and compliance assessments across the bank
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Improved productivity and efficiency with lower effort, reduced manual workload and resource requirements, through automation, integrated streamlined processes, and the use of technology solutions
Awards & Recognition
Chartis Research’s top 100 RiskTech companies 2022
RiskTech100 2021
Provider of the year 2019
rt360 Early Warning System by Banking Frontiers
business of the year 2021
of the year 2020
rt360 is a risk management product suite to manage the entire risk portfolio of banks and financial institutions that includes credit risk, capital allocation, pricing risk, liquidity risk, model risk and operational risk.
rt360 is designed by bankers, risk practitioners and technology specialists with a Business First, Technology Next approach, empowering banks and financial institutions to focus on their credit growth and profitability while managing their risks. The product is fully designed and made in India to address the complexities of the financial sector globally. The suite comprises of five distinct products to manage each of the risk portfolio.
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