Credit analytics for financial services
How do you prevent, protect and prosper?
One perspective on the current economic crisis is that many banks already had access to the data they needed to make sound investment decisions, but lacked an effective way to aggregate and understand it. While a lack of analytics and understanding of the "knock-on" impacts of industry-wide events helped create the crisis, better risk-based data analytics and business intelligence tools can help end it-and prevent its recurrence. Credit analytics for financial services can help banks become smarter about risk, understand industry-wide impacts, generate more revenue, build meaningful relationships and make more accurate lending decisions.
There is risk—and then there is smart risk
Credit analytics for financial services helps your enterprise be more instrumented, offering advanced technology and process support to help you make better credit risk decisions. The solution then helps your enterprise become more interconnected by incorporating Basel II standards and other regulatory requirements to help ensure compliance, as well as improve profitability and front-end and back-end performance. Finally, the solution helps you run a more intelligent enterprise with future-proofing tools, such as pandemic risk and high-impact event models, and unstructured data analysis tools. This capability can assess order of magnitude impacts on your financial institution. It can also help drive strategies for credit policy and lending during a crisis, taking into account the distressed environment.
Risk management starts at the center
Credit analytics for financial services is one of the financial risk offerings from the IBM Risk Center of Excellence and Global Delivery Center, which delivers:
- A 20 to 40% reduction in costs.
- Gap analysis and implementation of leading-edge risk management processes and practices.
- Standardization and convergence of risk assessment processes.
- Process support and outsourcing for credit risk analysis.
- More effective risk management reporting.
- Access to IBM Research and sophisticated modeling approaches to enhance your understanding of risk.
- Fewer "false positive" alerts from anti-money laundering and fraud solutions.
A framework for risk management
Technologies within credit analytics for financial services can include:
- IBM Information FrameWork models-this repository contains reference banking processes that can be used to streamline, standardize and improve underwriting and the new account pipeline. Standardization of such processes can yield great efficiencies and cost savings.
- Corporate brand and reputation analysis-this forward indicator of risk sentiments extracts social media content and corporate internal content; applies analytics to derive consumer, market and corporate insights; and presents those insights using comprehensive dashboards.
- IBM Business Partner solutions-these leading credit analysis and operational risk solutions can help meet your risk management needs.