STOC is a software application used to automate the management, tracking and valuation of collateral. Collateral and loan information are imported, analysed for eligibility and LTV based on predetermined business policies, valued via multiple market sources, and haircuts are applied. Many of the problems faced by financial institutions today come from an inability to properly mitigate the risks involved in lending, most recently experienced in the housing market, in the areas of perfecting and valuing collateral and thus reducing risk. The STOC product provides state-of-the-art functionality to allow the bank to minimize risk but at the same time provide a more efficient service to its customers.
"If the ship ever sinks, it's important to know if you are still carrying any cargo and whether this is buoyant or not. We look forward to our partnership with Rockall Technologies in managing our collateral according to best practices so as to maximize capital benefit for the Bank and minimize loss for shareholders, and a thorough understanding of this collateral and its value in various jurisdictions is all the more important given our emerging market focus," said Clive Laburn, Project Executive, SBSA.
Recent challenges in the lending markets have made the implementation of loan collateral management systems more critical than ever for financial institutions worldwide. As Rockall CEO Luke Nestor explains, "Rockall's product has once again proven to be highly flexible and will facilitate SBSA's goal to have a first-rate collateral management process. This will ensure that their loan books are well managed daily from a regulatory and business perspective. Rockall's executive directors all have more than 25 years experience and thus, Rockall presents a proventrack record as the partner of choice to deliver a quality product allowing banks to utilize risk management as a method to increase sales."