Precision Loan Monitoring Improves Credit Quality
Banks recognize that tightening origination standards only represents a point-in-time evaluation of credit quality. Shifting economic conditions mean that loan conditions – even those starting on a solid footing – need to be assessed on an ongoing basis. Potentially more profitable loans – which often come with more risk – also require more rigorous monitoring.
But reliance on spreadsheets and inflexible legacy systems means shifting monitoring practices to align with credit risk can be a daunting and expensive process. Even with flexible monitoring processes, banks also need visibility into performance and credit quality trends at both the portfolio and borrower-level.
A Consistent Post-Origination Risk Management Framework
The Covarity solution is the standard for some of the world’s soundest banks; a consistent framework to flexibly adjust monitoring requirements and measure credit quality at the portfolio and borrower level. Rule changes can be made at the institution level, through industry templates, or by configuring individual borrowers.
Insightful, at-a-glance reporting provides credit leaders with the ability to explore trends at any level in the portfolio and quickly link to details, analyze and determine who’s at risk and what they can do about it – before crises develop: a tremendous advantage in improving portfolio performance.