rt360 Expected Credit Loss

Precisely estimate expected credit loss and achieve IFRS 9 compliance

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rt360 Credit Risk Suite
rt360 Early Warning System
rt360 RAROC Calculator
rt360 Collections Management System
rt360 Real Time Monitoring System
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Accurately estimate expected credit loss and align with IFRS 9

IFRS 9 introduces a forward-looking approach to financial reporting, particularly with its Expected Credit Loss (ECL) model, which mandates financial institutions to account for credit losses at the inception of a financial instrument. This shift from a reactive to a proactive loss recognition model requires banks to estimate and report expected credit loss over the life of financial assets. In this context, rt360 Expected Credit Loss emerges as an indispensable solution, offering advanced analytics and modeling capabilities powered by AI. It assists banks in accurately forecasting credit losses, enhancing the precision of their financial reporting, and complying with the IFRS 9 standards.

A business-driven technology solution, rt360 Expected Credit Loss enables banks to compute Expected Credit Loss as per regulatory guidelines like IFRS 9, while addressing requirements such as PIT PD, and macro-economic factors.

Key Features

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Estimates ECL

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Estimates ECL

Computes 12 months’ Expected Credit Loss & Lifetime Expected Credit Loss. Computes Expected Credit Loss for both fund-based and non-fund-based facilities.
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Estimates PD/LGD/EAD

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Estimates PD/LGD/EAD

rt360 Expected Credit Loss automates PD/LGD/EAD computation approaches based on the user’s choice of model. Offers option to estimate PD/LGD/EAD at pool or individual exposure level using historical data.
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Computes effective interest rate

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Computes effective interest rate

rt360 Expected Credit Loss provides detailed cash flows for different types of financial instruments. Offers cash flow generations based on terms and conditions of contract (E.g.: fixed/floating rate, prepayment, drawdowns).
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Perform validation and calibration

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Perform validation and calibration

rt360 Expected Credit Loss enables businesses to automate the validation of parameters as per RBI/IFRS 9/Basel requirements through a pre-built library of tests.
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Dashboard and reporting

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Dashboard and reporting

rt360 Expected Credit Loss offers pre-built dashboards, reports for management reporting. User-defined portfolio for quick edits and regular updates.

Benefits

Advanced capabilities
Proactive credit risk assessment and monitoring.
End-to-end automation
Automation of credit risk governance
processes.
Accelerated timelines
Faster time to achieve regulatory compliance and internal reporting.

Products

rt360 Credit Risk Suite​

A transformative product suite powered by AI/ML algorithms, data analytics, configurable workflows, and extensive reporting and dashboarding tools.
Read More

rt360 Early Warning System

Comprehensive, always-on early warning indicators powered by AI/ML to help bankers identify potential default, stress or fraud.

Read More

rt360 RAROC Calculator

Accurately assess customer profitability while making credit pricing decisions for RAROC calculation thereby increasing credit growth.
Read More

rt360 Collections Management System

Unlock your full collection potential and increase resolution rates cost effectively with advanced AI/ML technology that underpins a robust collections strategy.
Read More

rt360 Expected Credit Loss

Compute Expected Credit Loss as per regulatory, IND AS 109 guidelines, while addressing requirements such as PIT PD, and macro-economic factors.
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rt360 Real Time Monitoring System

Enhance fraud detection and prevention with real-time monitoring, and facilitate proactive and preemptive actions.

Read More

Brochures

rt360 Credit Risk Suite

Get sustainable growth and maximized profitability powered by AI/ML algorithms, data analytics, configurable workflows, and extensive reporting and dashboarding tools.

Download Now

rt360 Early Warning System

Stay alert, efficient and profitable by identifying credit risks proactively and leveraging end-to-end predictive analytics.

Download Now

rt360 RAROC Calculator

Ensure dynamic risk-based pricing and efficient capital allocation with focus on maximizing profitability and driving sustainable growth.

Download Now

rt360 Collections Management System

Identify credit risks proactively, collect more, economically and at an accelerated pace by leveraging state-of-the-art predictive analytics.

Download Now

rt360 Expected Credit Loss

Recognize expected change in credit risk and onboard a framework to manage forward-looking credit loss. Adopt proven, scientific methods for computing credit losses.

Download Now

rt360 Credit Risk Suite

Get sustainable growth and maximized profitability powered by AI/ML algorithms, data analytics, configurable workflows, and extensive reporting and dashboarding tools.

Download Now

rt360 Early Warning System

Stay alert, efficient and profitable by identifying credit risks proactively and leveraging end-to-end predictive analytics.

Download Now

rt360 RAROC Calculator

Ensure dynamic risk-based pricing and efficient capital allocation with focus on maximizing profitability and driving sustainable growth.

Download Now

rt360 Collections Management System

Identify credit risks proactively, collect more, economically and at an accelerated pace by leveraging state-of-the-art predictive analytics.

Download Now

rt360 Expected Credit Loss

Recognize expected change in credit risk and onboard a framework to manage forward-looking credit loss. Adopt proven, scientific methods for computing credit losses.

Download Now

rt360 Real Time Monitoring System

Prevent frauds, monitor high-value, high-risk financial transactions in real/near-real-time. Get timely alerts that facilitate proactive and preemptive follow-up actions.

Download Now

Frequently Asked Questions

Expected Credit Loss (ECL) is an essential component under the IFRS 9 financial reporting standard, which enables banks to compute the anticipated credit losses on their financial assets. This process entails calculating both 12 months’ ECL and Lifetime ECL across fund-based and non-fund-based facilities. It integrates considerations like the Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), and macro-economic factors while also aligning with regulatory guidelines.
Financial institutions encounter several challenges in accurately estimating Expected Credit Loss (ECL) due to the complexity of integrating varied risk parameters and the necessity for detailed historical data analysis. Additionally, the need to include forward-looking information and adjust for point-in-time (PIT) PD variations complicates the process, making it difficult to achieve precision and consistency in risk assessment.
The absence of a standardized approach to Expected Credit Loss (ECL) calculation adversely affects regulatory compliance and adherence to IFRS 9 standards by introducing inconsistencies in how financial institutions report their credit risk and assess capital adequacy. This variance can lead to challenges in regulatory scrutiny and comparisons across institutions. Ultimately it stands to impact the overall stability and transparency of the financial system.
rt360 Expected Credit Loss (ECL) aids organizations in enhancing their ECL modeling capabilities through advanced features that automate the computation of PD, LGD, and EAD. It offers options to estimate these parameters at both the pool and individual exposure levels using historical data. By incorporating macro-economic factors and facilitating adjustments for point-in-time (PIT) PD, rt360 ECL ensures that models are adaptable and reflective of changing market conditions, thereby providing a more accurate estimation of credit risk.
rt360 Expected Credit Loss (ECL) streamlines the implementation and reporting of regulatory ECL requirements by offering a comprehensive solution that includes automated validation of parameters as per RBI/Basel requirements, detailed cash flow computations for various financial instruments, and a suite of pre-built dashboards and reports for management reporting. End-to-end automation and advanced reporting capabilities enable faster compliance with regulatory standards, such as IFRS 9, and facilitate efficient internal processes.
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BCT Digital’s rt360 risk management product suite transforms the world’s leading enterprises, drawing on the strengths of next-generation technologies, sophisticated AI/ML models, data-driven algorithms, and predictive analytics. Its revolutionary fintech, regtech, and cleantech solutions help enterprises optimize their core governance, risk, and compliance processes, enabling them to augment their positioning and go-to-market capabilities.

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