models, cut costs
Cyence, a leading provider of front-office loan origination software to the financial services industry, announced today that Fifth Third Bancorp has successfully deployed ExpressOSâs Probability of Default (PD) Rating software, a key component of Cyenceâs ExpressOS front-office commercial lending platform. Employing a user-friendly interface, the bank was able to configure the applicationâs compliance rating module to create a powerful customer risk management rating system.
The integrated solution is expected to deliver to Fifth Third a ten percentage point improvement over its existing risk-rating models, and save the bank the significant costs of re-rating customers by automatically segmenting customers based on risk.
The ExpressOS PD Rating module uses a highly configurable scorecard methodology to calibrate results using a customized data attribute weighting system. Users can substitute ratings between parent and subsidiary companies, compensate for customers in a default status, merge customer records to ensure enterprise-wide data integrity, and create approval mechanisms around the acceptance of ratings.
âIn every aspect, the ExpressOS solution provides our customers with the essential features they need to fully quantify risk and make the appropriate decisions, such as complete configurability and seamless integration with existing systems,â said Cyenceâs President, Greg McIntosh. âFifth Thirdâs rapid configuration and testing of the compliance rating module demonstrates ExpressOSâs functional breadth and flexibility.â
âExpressOSâs rating module has provided us with even greater customer rating capability,â said Joseph Heller, Fifth Thirdâs Director of Risk Strategies & Reporting. âIt houses the PD rating models and plays a vital role in our overall rating solution by allowing us to design and add new qualitative factors to increase the modelsâ predictability.â
Fifth Third uses ExpressOSâs PD Rating module as a component of its solution to extend its current commercial and industrial (C&I) and large corporate rating models. Future initiatives include the configuration of municipal and commercial real estate models.