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InvestTech Leads Credit Management Strategic Assessment for Regional Bank

Author: InvestTech

10 | 27 | 2016

credit management strategic assessment.jpgClient Challenge:

Credit profiling and commercial loan portfolio management have become imperative to build and maintain a healthy loan book for all types of lenders, including banks and investment managers. With various lending market and regulatory changes, lenders are seeking ways to streamline and consolidate disparate technology systems and processes. A top 50 bank realized they had a strong need for a more efficient and automated commercial lending solution as their current state system is outdated, requires manual processes, and is unable to support many key operational functionalities performed by the Lines of Businesses (LOB).

Given the growth of the regional bank’s commercial lending portfolio, coupled with their increasing risk and complexity of deals, it became critical that they invest in a system with robust portfolio information, analysis and reporting. Their current system lacked these capabilities, and they were supplementing it with manual spreadsheets. Data was accessed from different places, consolidated and manipulated manually. This increased the risk of data errors and inconsistencies, and limited their ability to monitor and review aggregated portfolio metrics. Portfolio risk assessments and stress testing were difficult. The increasing complexity of deals required more flexibility and better configurability. The client’s existing system no longer supported the business, so the client sought a new Credit Management System to achieve the following critical objectives:

  • Advance portfolio management capabilities
  • Ensure data accuracy and centralized data
  • Enhance financial spreading capabilities
  • Automate reporting and analytics
  • Centralize the credit document repository
  • Improve workflows and audit tracking (exception, policy etc.)

InvestTech Solution:

InvestTech has helped many firms select software solutions across multiple investment areas, which made us the perfect choice for identifying potential new Credit Management Systems. We understand the credit lending business requirements and the capabilities a robust credit management system delivers commercial lending portfolio managers. InvestTech provided a custom-tailored market survey utilizing our solution evaluation framework reducing the risk of implementing a solution that would not meet current and future business needs.

We began the project by becoming familiar with each LOB to gain an understanding of the client’s core commercial lending business. We reviewed their current state processes and system capabilities while gathering and documenting functional requirements for each LOB. We summarized the gaps and deficiencies of the current system and helped prioritize the requirements of the new platform, creating an optimal future-state solution. InvestTech’s team researched, interviewed and viewed demos of multiple Credit Management Systems in the market that would satisfy the client’s requirements.

As part of the advisory, InvestTech provided the client with a current-state assessment, future state credit loan operating model and system requirements, which included:

  • Documenting gaps and pain points
  • Gathering and documenting requirements for each LOB
  • Designing future state operational processes and system design
  • Researching vendors
  • Analyzing and comparing products
  • Providing a peer review
  • Recommending a shortlist of vendors that met their requirements
  • Estimating a five-year total cost of ownership, including resource recommendations

Additionally, InvestTech helped educate the client on how to achieve a successful implementation with realistic time frames for each phase and go-live.

Implementing an InvestTech recommended Credit Management System will provide many benefits to the bank. They will improve their ability to analyze portfolio trends, monitor for early warning signals, perform stress testing, and ensure adherence to credit policies. Productivity will increase, and the client will improve efficiency across all Lines of Business by having centralized data, reducing manual or duplicative processes, and streamlining workflows.

To learn more about how InvestTech can assist your firm with the evaluation of a new Credit Management System or another tool in your investment architecture, contact us at 877.559.6077 or

Posted in: Alternative Investments | Evaluation | credit management