Superior decision making with proactive alerts - rt360
Excerpt Top Indian bank radically reduces non-performing assets with an Early Warning System
About The Client
The client is the third-largest bank in India offering a wide assortment of financial products to large and mid-size corporates, SME and retail businesses.
Products & Services
Investment Banking
Consumer Banking
Commercial Banking
Asset Management
Retail Banking
Banking
Pensions
Mortgages
Credit Cards
Enabling the roadmap to a healthy asset book
Financial institutions across the globe are rapidly adopting a technology-led approach. Digital enablers are helping them enhance their reach and achieve better financial inclusion for the underserved segments of the economy.
Today, technology-enabled digital lending channels, such as internet sites, ecommerce platforms, fintech companies & lending apps, are widely used to select and deliver loan products to the customers; for instance, automated scorecards to approve/reject home loans. They come with numerous advantages, like short turn-around times and wider reach, thereby helping financial institutions to rapidly expand the book-size while keeping the cost of acquisition low.
This has led to a surge in digital transactions, calling for changes to the way we approach credit risk today.
Business Landscape
Non-performing assets continue to be one of the biggest challenges facing the global banking system, and particularly, Indian banks. As per the Reserve Bank of India (RBI) the gross NPAs in Indian Banks are valued at US$61.5 Bn. In such volatile market conditions, bank stakeholders and regulators expect constant reassurance of good quality, less risky loans. Many are revisiting current practices and reengineering them to advanced approaches. Indian banking is gradually moving from a simple compliance driven entity to proactive control based digital systems that can actively manage credit risk.
The Challenge
The recent economic slowdown was expected to have an impact on customer segments across the bank’s portfolio of products and services. The client needed to safeguard their assets and proactively monitor their operations, given that nearly 80 percent of their loans were to the corporate sector, specifically power and infrastructure companies which were in ill health in recent times, significantly elevating the NPA levels for the bank.
The client sought a technology partner who could help them set-up an early warning system for their DC and DR locations for proactive monitoring and management of credit risk. Some of the key expectations were:
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Compliance with RBI’s RFA list and EASE requirements
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Dynamic monitoring through Auto Alerts, configurable as per bank needs
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Integration with diverse Internal & External sources (E.g. Internet, Third party data sources – Data aggregators/CIC’s)
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Case management to manage workflow with the appropriate escalations, follow-up and corrective actions
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Risk scoring for categorization of customers into different risk buckets
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Inter-Bank comparison /analysis, ccustomizable reports and market intelligence
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Recommendations for strategic decisions at account/ portfolio level
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 improve our profitability across product lines.
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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