Profitable Lending Business
Banks need powerful software to efficiently map your business model, falling margins in the banking sector require an efficient credit software by orientation of the credit economy on classical divisions leading causes a fierce competition of banks in the lending business, the credit margins falling parallel to a lower level of interest rates in the wake of the financial crisis. In a recent study (March 2013), Boston Consulting Group assumes that pressure on margins will continue in the coming years through, inter alia, the entry of another competitor and phasing out high-margin old construction financings, as well as falling interest rates for disposition credit. Is all the more important for ensuring a profitable lending business – especially in the face of high processing and risk cost – efficient processing of credit processes, which necessarily presupposes the use of credit software based on the workflow of credit sales and market order. Credit software: the workflow a modular credit software based module solutions opens up in the retail such as cost synergies in the individual lending much-needed and facilitate compliance with the requirements of 25a of the KWG and minimum requirements of serving his clarification for risk management (MRisk) of Bundesanstalt fur Finanzdienstleistungsaufsicht. Credit software oriented to the workflow supports the credit consultants already in the initial conversation with a customer during data recording, creating interest and repayment plans, as well as at an effective interest rate calculation corresponding to the statutory requirements. Redundancies are a matching avoided between a stock and an application database.
Credit decisions are facilitated by the decision blocks in accordance with the Bank defined and prescribed regulatory criteria contained in the credit software consultants and credit officers. A modern credit software supports not only in credit new shops, but accelerated editing by prolongations. Collateral valuation by credit software ensure standardized approach taking into account all relevant positions. Credit software, who always provides an up-to-date overview of all collateral, collateral can be dealt with effectively and also released. At the optimum pressure management of credit software relies on a centralized form management, a user can access the back according to his individual permission. In addition, the credit software ensures a proper archiving of loan contracts.
Last but not least, the software allows the permanent creation of credit sales and risk management controlling as well as (serve the preparation of strategic decisions) analysis of the loan portfolio. Flexibility is ensured by standard and individual modules achieve an optimal price/performance ratio by a software module offers the building blocks relevant for a credit institution can be selected from the. The diverse forms of bank credit (such as MRP loans, Consumer loans, mortgage loans, loans against securities, business loans and investment loans), supplemented continuously due to product modifications and product innovations, and require different strategies of Bank lending credit exposure to swarms above all software modules for individual lending and for intensive in addition to a standard software for the retail business. Credit software must also prove their flexibility given frequent changes of credit construction organizations and work processes in the lending business. New strategic risk assessments within a Bank and advanced regulations can lead to altered requirements on a software for the credit business. This required increasing software adjustments – perform cost provided a modular credit software by external software vendors than is usually possible with internal solutions.
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