Solution Guide to Credit Risk Management in Banking
Introduction
While governments and regulatory bodies are trying to revive their economies and are putting banks under pressure to increase their lending, the industry's ability to manage credit risk remains weak. This situation is boosting a re-evaluation of credit risk management processes and the underlying technologies to minimize the exposure to current and future credit losses.
Features and benefits
Credit risk in many cases is the entry point of addressing other interconnected risk areas (such as market or liquidity risks), with the twin drivers being regulatory changes and the now all-too-obvious need for improved exposure aggregation capabilities.The technology evaluation criteria should be focused on areas that relate to banking credit risk management strategy: reliability, commitment to the banking sector, and rich capabilities.
Your key questions answered
While governments and regulatory bodies are trying to revive their economies and are putting banks under pressure to increase their lending, the industry's ability to manage credit risk remains weak. This situation is boosting a re-evaluation of credit risk management processes and the underlying technologies to minimize the exposure to current and future credit losses.
Features and benefits
- Identifies the technology vendors banks should shortlist when considering the purchase of a credit risk management solution
- Provides a comparative technology assessment of the credit risk management solutions offered by leading vendors in the banking market
- Identifies the credit risk management solution providers that have the most impact on the banking market
- Offers visibility into how well different credit risk managemetn solutions support the entire credit lifecycle
Credit risk in many cases is the entry point of addressing other interconnected risk areas (such as market or liquidity risks), with the twin drivers being regulatory changes and the now all-too-obvious need for improved exposure aggregation capabilities.The technology evaluation criteria should be focused on areas that relate to banking credit risk management strategy: reliability, commitment to the banking sector, and rich capabilities.
Your key questions answered
- What are the strengths and weaknesses of leading credit risk management vendors and their solutions?
- What vendors and their solutions should be shortlisted for a credit risk management project?
- What vendors offer best credit risk functionality and underlying technology?
SUMMARY
Catalyst
Ovum view
Key messages
Credit risk is a vital component of overall risk mitigation
Banks need better tools to mitigate credit risk exposure
Banks should to focus on reliability, commitment, and rich capabilities when assessing vendors
MARKET DEVELOPMENTS
Organizations must revisit their credit risk processes
Credit risk must be treated as a component of a wider risk strategy
Banks should focus on a framework approach when evaluating credit risk technology
Business intelligence and analytics are required for stronger credit risk oversight
SOLUTION GUIDE TO CREDIT RISK MANAGEMENT IN BANKING
The competitive landscape
Assessment and positioning
Market leaders: SAS, SunGard
Challengers: Algorithmics, FICO, SAP
Niche competitors: FinArch, FRSGlobal, Misys
GENERAL ASSESSMENT
Market leaders
Market impact assessment
Credit risk functionality assessment
Technology assessment
VENDOR ANALYSIS
Algorithmics
Recommendation: Consider
FICO
Recommendation: Consider
FinArch
Recommendation: Explore
FRSGlobal
Recommendation: Explore
Misys
Recommendation: Explore
SAP
Recommendation: Consider
SAS Institute
Recommendation: Shortlist
SunGard
Recommendation: Shortlist
APPENDIX
Ovum ratings
Methodology
Extended methodology
Market impact
Credit risk functionality
Technology
Further reading
Definitions
Author
Ovum Consulting
Disclaimer
Catalyst
Ovum view
Key messages
Credit risk is a vital component of overall risk mitigation
Banks need better tools to mitigate credit risk exposure
Banks should to focus on reliability, commitment, and rich capabilities when assessing vendors
MARKET DEVELOPMENTS
Organizations must revisit their credit risk processes
Credit risk must be treated as a component of a wider risk strategy
Banks should focus on a framework approach when evaluating credit risk technology
Business intelligence and analytics are required for stronger credit risk oversight
SOLUTION GUIDE TO CREDIT RISK MANAGEMENT IN BANKING
The competitive landscape
Assessment and positioning
Market leaders: SAS, SunGard
Challengers: Algorithmics, FICO, SAP
Niche competitors: FinArch, FRSGlobal, Misys
GENERAL ASSESSMENT
Market leaders
Market impact assessment
Credit risk functionality assessment
Technology assessment
VENDOR ANALYSIS
Algorithmics
Recommendation: Consider
FICO
Recommendation: Consider
FinArch
Recommendation: Explore
FRSGlobal
Recommendation: Explore
Misys
Recommendation: Explore
SAP
Recommendation: Consider
SAS Institute
Recommendation: Shortlist
SunGard
Recommendation: Shortlist
APPENDIX
Ovum ratings
Methodology
Extended methodology
Market impact
Credit risk functionality
Technology
Further reading
Definitions
Author
Ovum Consulting
Disclaimer
