Current financial environments requires centralized control of limits and collaterals
Today’s financial environment which is volatile, uncertain, complex and ambiguous demands a comprehensive risk management framework. While the credit function in any organization can anticipate change in the overall economic environment and build policies that will protect the bank/ financial institutions, the benefits can be reaped only if these are enforced conclusively
Not enforcing internal guidelines/ regulatory guidelines the financial institutions may face punitive actions that include huge fines ranging from few million dollars to over a billion dollar from Regulatory Authorities for limit breaches or ineffective handling of counterparty risk.
Optimization of Collaterals is must for any financial institution as the world is moving towards tougher regulations (Basel III, Dodd-Frank, etc) that has soared the requirement of collaterals and its cost
Versatile Enterprise limit & collateral management platform with ability to integrate with any existing legacy systems
Intellect Credit Services Hub (CSH) is the enterprise wide platform for real-time credit limit exposure and collateral monitoring across the Island of systems that works in silos. The integrated solution is Polaris’ state-of-the-art limits and collateral managing system, which has helped Banks and Financial Institutions across the world manage the Credit exposures efficiently and effectively.
GLOBAL CREDIT LIMIT MONITORING: Credit limit management, part of Intellect Credit Services Hub supports centralized limit setup and real-time monitoring for a customer or group across the multiple lines of business – Retail & Commercial Lending, Credit cards, OD / CC limits, Trade modules inclusive of LC, BG, Channel Finance, Bills and Treasury management. Credit limit system supports multiple levels in the limit hierarchy, defines limits and monitors the exposure at various levels.
GLOBAL COLLATERAL MANAGEMENT: Any secured lending transaction requires the borrower to provide asset as security against the borrowed amount. Intellect Collateral Management is a centralized asset management system that supports entire lifecycle of asset management and its collateralization for all credit offerings. Collateral management automates the entire lifecycle of Collateral asset and supports Pooling of collateral, Revaluation & Breach on coverage, Asset revaluation including securities valuation, Freezing & Repossession.
Distinctive elements of Credit Services Hub
· Enterprise limit monitoring across business lines – Centralized limit setup and real-time monitoring for a customer or group across the multiple lines of business and & systems
· Multi-Dimensional Limit monitoring – Limit setup made easy for various dimensions in diverse forms – Individual & Group limits, Funded & Non funded limits, Secured & Unsecured limits, Revolving & Fixed credit limits, Approved & Operative limits
· Counter party management – Counter party or Risk party exposure can be handled in parallel with borrower limits
· Cross currency function across multiple limits and collaterals
· Collateral management supports multiple asset types for all the lines of Businesses and all collateralization patterns like Mortgage, Hypothecation, Pledge or Lien. Some of the asset types are,
o Real Estate – Land, Residential commercial properties
o Automobile – Cars, Trucks & other Commercial Vehicles
o Equipments, Plant & Machinery
o Securities – Equity, Bonds or Mutual Funds
o Fictitious Assets – Guarantee, Receivables, etc.
· Maximizing drawing capability and minimizing risk through collateral sizing and allocation process across multiple facilities. It optimizes collateral allocation and reduces the risk in collateralization.
· Effortless creation of new asset type – Interlinked mapping in Collateral type, Brand, Model, Supplier & Demographics