White Paper

Wholesale banking: Challenges in automating commercial credit risk management

Company: IBM Business Analytics

IBM Business Analytics  case study

Category: Market Risk

Published: 04 September 2015

Format:

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Overview

Financial institutions seeking to invest in enhanced risk management of commercial credit face significant challenges. While outwardly straightforward, commercial credit is one of the most complex areas of banking. As a result, it is not unusual for financial institutions to underestimate the scope or challenges involved in the automation of originating, monitoring and managing commercial credit.

 

Discussing these enhancements is more important than ever. Default rates on commercial credit facilities are at their highest rate in almost two decades, and automation is an effective tool to help banks improve transparency, enhance management control and increase operational effectiveness.

 

This white paper breaks down the complexities of the commercial credit process and provides a clear picture of the challenges and potential benefits of automation.

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