The Credit Technology Innovation Award, announced in November, highlights solutions that provide front-line market participants with crucial operational support. All major vendors were considered, and those that had a truly innovative and proven practical application of the technology in todayâs marketplace have been recognized. Fiserv IPS-Sendero was chosen based on new functionality developed for its KRM solution, which incorporates rollover modeling of existing cash flows and new business flows based on ratings.
Matthew Attwood, editor, Credit magazine said, âFiserv IPS-Sendero is a key player in the enterprise risk management space, and through continued product development and innovation around its KRM solution, financial institutions are equipped with the tools necessary to perform comprehensive risk analytics in an increasingly demanding environment.â
Suresh Sankaran, director of strategic consulting for Fiserv IPS-Sendero, said, âA comprehensive approach to risk management is essential to the success of any banking organization, and practices that can optimize risk-adjusted pricing and returns throughout the organization will lead to improved productivityand performance. There is no one-size-fits-all formula; however our solution enables liquidity to be modeled on a credit-adjusted basis, a key to successful risk management.â
Fiserv IPS-Senderoâs KRM solution enables users to analyze all current and future credit-adjusted cash flows by credit rating, which ensures that pricing is correctly applied based on the ratings category that the cash flow falls into. In addition, liquidity is correctly assessed based on customer creditworthiness, which is determined by the ratings profile. Users can incorporate either agency credit ratings or use the various credit models available within KRM to generate default probabilities and compute dynamic cash flow migrations.