BCT Digital launches Audit Management solution as a part of its rt360-GRC product suite
The solution, which is an addition to the company’s rt360 GRC product suite, allows enterprises to define the audit universe and map auditable entities based on periodic Risk Assessments of the business.
Chennai, 28 July 2020: BCT Digital, a global Fintech company specializing in BFSI, Predictive Analytics, and Risk Management, has announced the launch of rt360-ECL solution from ‘IND AS 109 Product Suite’ for Expected Credit Loss (ECL) reporting. The rt360-ECL is an integral part of the IND AS 109 Product Suite and has been designed exclusively keeping in mind the unique and specific nuances of Indian Financial Institutions and the Indian Regulatory Environment.
With the introduction of the global International Financial Reporting Standards-9 (IFRS 9) and its equivalent Indian Accounting Standards (IND AS) 109, financial institutions are moving towards adopting scientific methods for computing credit losses. The first set of guidelines in this regard were issued by the RBI in February 2016, which was followed by a series of amendments, and the latest one was issued in March 2020. This amendment announced the implementation of the Indian Accounting Standards, including IND AS 109 for NBFCs and Asset Reconstruction Companies.
IND AS 109 requires financial institutions to take the Expected Credit Loss (ECL) approach as opposed to the Incurred Loss approach. Under the ECL approach, credit losses must be granularly and systematically estimated and provided for throughout the life span of a loan. The rt360-ECL is a business-driven technology solution that enables banks to compute Expected Credit Loss as per regulatory guidelines, while addressing requirements such as Point-In-Time Probability of Default (PD), Validation and forward-looking estimates.
The rt360-ECL aggregates banks’ historical data and estimates parameters such as Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) and Effective Interest Rate (EIR). It’s inbuilt standard functions support validation and calibration of models to ensure that the process is efficient and robust. It’s essential value additions include automation of credit risk monitoring processes, faster turnaround time to achieve regulatory compliance and internal reporting and proactive credit risk assessment and monitoring. The core features of the rt360-ECL include computing 12 months’ and lifetime ECL for both fund-based and non-fund-based facilities; automated computation of Probability of Default, (Loss Given Default and Exposure at Default); Effective Interest Rate computation; automated validation of parameters as per RBI/Basel requirements through a pre-built library of model validation tests; integration with other solutions, such as core banking/Asset Liability Management systems& and prebuilt dashboards for management reporting. Click here for more information.
BCT Digital being a FinTech specialist and pioneer in risk management solutions aims to empower banks and financial institutions to recognize expected changes in credit risk and provide a framework to manage forward-looking credit loss through the rt360 Risk Management Suite. rt360 risk products are a 100% “Made in India”, by BCT Digital, keeping in mind the complexity of internal and external risk factors faced by banks.
Ms. Jaya Vaidhyanathan, CEO, BCT Digital said,
“During these unprecedented times, banks are facing huge credit losses as their customers suffer through the COVID-19 pandemic. Managing credit risk in a volatile financial market is very critical. If not carefully monitored, the systemic risks can easily snowball, and this can impact not only the banking network, but also the financial health of the country at a macroeconomic level. The rt360-ECL is an integral part of BCT Digital’s IND AS 109 product suite and has been exclusively designed keeping in mind the unique nature of the Indian regulatory environment and specific nuances of Indian financial institutions.”
About Bahwan CyberTek
BCT Digital is an award-winning global digital transformation company delivering disruptive Fintech, RegTech, and Cleantech solutions to large organisations across diverse industry verticals. The company empowers industries to predict, manage and mitigate risks and make effective risk-resilient decisions leveraging next-gen technologies and sophisticated AI/ML models, data-driven algorithms, and predictive analytics. Ranked among the top 100 global companies by Chartis Research, BCT Digital helps banks, financial institutions, large enterprises, and public organisations optimize core processes and niche digital services, to maximize growth and profitability.
BCT Digital is a group company of CMMI L5-certified Bahwan CyberTek (BCT) Group, a global provider of digital transformation solutions in the areas of predictive analytics, digital experience, digital supply chain management and financial risk management in 20+ countries across the Middle East, North America, Far East, Africa, and Asia. The Group drives innovation through outcome-based business models and powerful IP solutions, delivering digital solutions to BFSI, Oil & Gas, Telecom, Power, Government, Retail and SCM / Logistics verticals.