Credit Risk Evaluation for Bank
THE BUSINESS NEED
A major bank in Greece needed to integrate a Credit Risk Evaluation System in its customers loan requests evaluation procedures in order to evaluate its customer’s finance requests efficiently, assist lending processes and better control the underlying credit risk.
CSS as a subcontractor undertook the project’s development for use by the bank’s corporate credit. The system was developed in Java using the IBM’s WAS (Webshere Application Server) and MS SQL Server data base. The project was addressed to the Bank’s corporate credit and lasted for 5 months. Our company designed and delivered the following:
- Workflow design and development for the evaluation of requests for finance by the bank’s corporate credit.
- Finance request data entry
- Company’s credit score retrieval
- Data entry for company’s financial and business information
- Initial offer of terms, and customer’s response
- Final offer of terms approved by multiple users/levels. Customer’s final response.
- Main user screens :
- Company’s history log of requests
- Company’s history log of credit evaluation
- User’s pending requests/request evaluations.
- Reporting (compiled by customer and /or bank’s user)
- Extensive logging/auditing for all major user interactions with the system during the request evaluation.
The system was installed in the Bank’s Network and the Central Operations in order to support short term loans services or long term financing for Small & Medium Enterprises. After successful installation of the Credit Risk Evaluation System in the Bank’s production environment, the Bank :
- Covered the requirements relating to the new regulatory framework for the calculation of the capital adequacy of credit institutions,
- Reduced personnel man-hours for gathering and analyzing data and service of requests,
- Achieved electronic recording of requests and credit evaluations,
- Achieved automation of the approval process,
- Achieved reduction of the cost of operation
- Established a long-term image of the customer, in order to be able to derive comparative conclusions,
- Became capable of performing individual analyzes both at customer, store, geographic and economic activity levels,
- Became capable of evaluating the profitability of the funds and the reserves that should be created from any bad debts per credit risk category.