Royal Bank of Canada (RBC), with over $680 billion in assets, centralized and streamlined their loan monitoring processes, improving performance and decreasing risk in the process.
Concerned about the overall inefficiencies in the commercial loan monitoring process for their more than 10,000 commercial loans, Royal Bank of Canada (with $680 billion in assets) was looking for a solution that would resolve their complex and unwieldy processes that lacked control.
RBC was using multiple systems along with a manual process to manage their large commercial portfolio. Credit analysts were spending all their time managing, analyzing and monitoring multiple documents for each loan using Excel. Coupled with the multiple complex business rules, loan monitoring was rarely done consistently.
In 2007, RBC selected Covarity as their platform of choice to streamline and automate the loan monitoring process, increase productivity and improve overall compliance. Implementing Covarity enabled RBC compliance staff to spend much less time processing customer reviews and more time on value-added activities, such as creating new business opportunities and improving client relationships. Borrowers now electronically upload their financial statements and are notified automatically when they are due. Moving away from a legacy system that was unable to keep up with the changing demands of loan monitoring, loan reviews, covenant spreading and borrowing base analysis are now performed automatically, and at-risk loans are immediately brought to the loan officer’s attention.
Royal Bank of Canada is the largest bank in Canada, 4th largest in North America, and 10th in the world. RBC has been ranked 10th on the Global Finance list of the World’s 50 Safest Banks, 2009.