rt360 Early Warning System (EWS) strengthens the credit portfolio of a major nationalized bank in India

Enables 100% compliance with RBI and DFS mandates

About The Client

The client is one of the foremost public sector banks in India serving 100 million+ customers with close to 40,000 employees and 5,700+ branches across the country. It also has 227 overseas correspondent banks in 75 countries. Its total business is pegged at US$130 billion, as of March 2022. It was identified as an anchor bank in the country-wide nationalisation initiative, merging with a leading nationalised bank in 2020.

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Summary

Early Warning System (EWS) implementation is an integral part of RBI and DFS mandates. The mandates require banks to monitor and report suspicious activities in accounts with exposure above ₹50 crore. The bank sought to comply with these mandates, while curbing further rise in non-performing assets (NPAs) and credit frauds. It also wanted to improve its focus on high-profile customers and high-growth industry sectors. Together with BCT Digital, it fast-tracked the deployment of rt360 Early Warning System (EWS) within its premises, leading to outstanding results.

The challenge:

  • Data availability, extraction, multi-source aggregation, and extensive analysis are crucial for EWS efficiency. Hence, data quality was a priority.
  • EWS required seamless integration with the core banking and legacy systems and external databases.
  • CRM data collation and reporting were time-consuming and manual tasks, which could take up to six months.
  • Monitoring and resolving EWS alerts on time, right from the branch level to the corporate office, was of prime importance.

Transformation:

rt360 EWS provides early warning signals to authorities as per pre-defined criteria and threshold limits. It uses complex algorithms, statistical techniques, and advanced technologies, like predictive analytics, to generate composite risk scores and measure the probability of risk. The application, built on modular architecture, is user-friendly, automated, scalable and secure

The bank worked together with BCT Digital on the following business-critical activities:

  • Extensive data collation, mapping, cleansing, and accuracy checks
  • Seamless integration with multiple internal and external systems. BCT Digital helped the bank onboard an aggregator for sourcing vital borrower data.
  • Configuring automatic workflows to track and monitor processes and their status across hierarchies
  • Compliance with RBI and DFS mandates. BCT Digital configured 42 RBI alerts and 84 DFS alerts.
  • Using a proven risk management framework, solution accelerators, and project management benchmarks to fast-track implementation

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.

  • rt360 EWS enables 100% compliance with RBI and DFS mandates
  • Exceeds the expected regulatory coverage of INR 50+ crore exposure
  • 935+ corporate customers with a total exposure of INR 1.46 lakh crore are proactively monitored, along with 360-degree borrower profiling
  • Customized dashboard and reporting for senior management
  • End-to-end automation of data collection, alert generation and workflow configuration for faster decision-making
  • 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.

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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.

  • rt360 EWS enables 100% compliance with RBI and DFS mandates
  • Exceeds the expected regulatory coverage of INR 50+ crore exposure
  • 935+ corporate customers with a total exposure of INR 1.46 lakh crore are proactively monitored, along with 360-degree borrower profiling
  • Customized dashboard and reporting for senior management
  • End-to-end automation of data collection, alert generation and workflow configuration for faster decision-making
  • Tremendous savings by automating CRM forms processing

Awards & Recognition

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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