Strengthening MSME Credit Portfolios with BCT Digital’s rt360 Early Warning System
About the client
Implementation snapshot
Business challenge
As a prominent MSME financing institution, the client functions with a mission to facilitate and strengthen credit flow to MSMEs while addressing both financial and developmental gaps in the MSME ecosystem. Their vision is to become a single window for meeting the financial needs of MSMEs, including a strategic focus on making the sector globally competitive through modern technology platforms.
However, despite their extensive network and strong presence, they faced challenges in monitoring and managing their credit portfolio as well as in adhering to regulatory mandates from the Reserve Bank of India (RBI) and the Department of Financial Services (DFS). Additionally, their processes lacked the automation and real-time monitoring capabilities necessary to maintain an up-to-date and transparent credit system.
As their business expanded, the need to monitor, assess and report on credit risks across their portfolio, specifically for exposures exceeding INR 50 crore, became apparent. Comprehensive borrower profiling, timely data sharing and the need to improve credit monitoring efficiency became imperative.
Solution
To address these challenges, they partnered with BCT Digital to implement the rt360 Early Warning System (EWS) – an advanced product suite designed to enhance credit monitoring and ensure compliance with RBI and DFS mandates.
Key aspects of the transformation included:
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Regulatory compliance: EWS enables companies to fully comply with 100% of RBI and DFS mandates and exceed the regulatory expectations for monitoring corporate customers – particularly those with high risk exposures.
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Borrower profiling and monitoring: Through rt360, the institution got a view of 360-degree customer profiles. This feature allows for improved customer insights and better engagement.
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Automation and workflow management: The solution automates crucial processes such as data capture & collection, alert generation, and workflow management to accelerate decision-making and strengthen the ability to monitor accounts regularly.
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Custom reporting: Customizable dashboards and management reporting enable the senior leadership to gain real-time visibility into credit performance.
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Mobile access: The rt360 EWS is available as a mobile application, powered by a microservice architecture for seamless, on-the-go accessibility. This hybrid app supports Android and iOS platforms, allowing users to continue monitoring credit risks even during remote work scenarios.
Value delivered
rt360 EWS has not only improved the client’s ability to manage and monitor their credit portfolio but also strengthened their alignment with the broader mission of supporting the MSME sector.
The implementation resulted in transformative changes across the client’s operations:
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100% regulatory compliance: The company efficiently meets RBI and DFS mandates, reinforcing their commitment to regulatory excellence.
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Portfolio expansion: With over 1,000 corporate customers being monitored through EWS, the client anticipates a 15% y-o-y increase in monitoring capacity, driven by automated insights and scalability.
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Enhanced decision-making: The automation of workflows and alert generation enabled faster decision-making, empowering the executive team to quickly identify portfolio weaknesses and initiate rectification measures.
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Improved asset quality management: Regular monitoring and real-time reporting enabled them to monitor accounts regularly and give on-time advice to branches for maintaining asset quality.
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Business continuity: The mobility functionality played a critical role in ensuring uninterrupted credit monitoring during the pandemic, offering employees the flexibility to work from any location.
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Executive empowerment: The company’s management now benefits from a customized dashboard and reporting system that supports strategic decision-making.
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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