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The time is now
Intelligent automation in credit risk management
Credit risk people the world over have grown used to hearing colleagues extol the benefits of end-to-end process automation. Particularly in banks’ operations functions, cognitive automation and straight-through-processing (STP) have revolutionised the customer experience, fortified profitability and enabled sweeping programmes of cost reduction.
Over in the risk management world, the take-up of new technologies has been somewhat slower, to say the least. Credit risk teams tend to work across a myriad of systems and processes with frequent human interaction and paper-based documentation. Just look at what a typical credit team does during the course of a day. There will be many high-skilled specialisms such as new business prospecting, financial spreading, credit analysis and capital planning. But many of these activities will likely involve a range of resolutely low-skill components such as data entry, copy-paste and office software formatting.
The smaller size of an average risk team (be it in the first or second line) also means that economies of scale exploited by huge operations functions can be harder to realise. But things aren’t what they used to be. Banks are actively considering the future of risk and how best to transform their risk operating models.
We have proven to clients that we can implement cost-effective automation using the tool we call Documentation Intelligence. It delivers the benefits of STP but without the need for huge up-front spending and without taking on nerve-shredding IT project risk.
I grew up managing credit risk at banks. I always understood where my team made the biggest contribution to profits: generating leads and getting deals through Credit Committee. Our goal is to help banks automate – intelligently of course – everything else. Everybody wins.
Jan-Hinnerk Fahrenkamp, Director, Risk Advisory