Credit risk measurement technology trends
Charting the course from legacy issues to strategic solutions for banks and building societies
There is a new sense of urgency in the market, to reconsider the technology platforms used to manage credit risk. This is not only driven by the increased analytical complexity associated with regulatory and accounting requirements; but also by a recognition that banks and building societies (firms) need to keep up with the increased pace of innovation. Cost is also an important consideration; legacy infrastructure often creates an unnecessary overhead.
Firms are asking: “How do I migrate to a fully open-source (OS) platform and cut the significant costs incurred from proprietary software vendors?”
In reality, this question is much more complex. Such a strategic change in the underlying technology platform directly impacts the operating model of the credit risk function, affecting people, process and strategy.
Drawing on our experience and network in banking, Deloitte researched credit risk technology platform options and the resulting case for change in the UK and European markets. In our survey, we spoke to experts from different firms – from new digital challenger banks to large multinational banks – to better understand:
- Their current credit risk technology strategy;
- What OS Proof of Concepts (POCs) they have explored;
- The credit risk technology they are exploring as part of their future platform; and
- The credit risk technology platform that they are currently using.
Regulatory challenges are forcing firms to re-examine the cost, efficiency, sustainability and transparency of their risk management requirements.
Technological change can address these challenges by optimising the end-to-end credit risk management process. This will give firms a firmer grasp on risk and allow firms time to focus on optimising their business and future pipelines.
Optimise your end-to-end credit risk management process
Deloitte has unparalleled technical knowledge, breadth and depth of experience in the area of risk modelling, risk and capital system implementation and operating model change. We are uniquely placed to work together with clients who are interested in better understanding the benefits of a strategic change in their current risk operating model. Drawing on our deep technical expertise in both modelling and infrastructure configuration we can offer you a seamless and cost efficient service that meets the needs of your business.
Find out more by contacting one of the team listed below.