South African as well as international banks and financial service providers are faced with the daunting challenge of compliance issues. Webcom Software has responsed with a fully integrated product set to mitigate these compliance and risk factors while improving revenue generation – namely, IntelliCredit and eComply.
Within the three pillars of Basel II, mitigating Credit Risk, Market Risk and Operational Risk is imperative to guard against the collapse of a Bank or Financial Institution. IntelliCredit and eComply are two niche applications designed and developed specifically around banking laws and regulations as issued by Basel II.
Apart from meeting Basel II standards by setting up rigorous risk and capital management requirements, these applications allow for simpler and faster throughput which means vastly improved turnaround times with more applications being processed. This results in lower risk in exposure with higher revenues – a win-win for any organisation.
This particular Webcom Software portfolio consists of IntelliCredit, which deals with Credit and Market risk, and eComply, which handles Operational Risk. These products are available as a product set to holistically deal with regulatory issues, or as modular products to address specific business requirements.
"Many financial services institutions have disparate sectors such as retail, corporate and business that operate in silos, each creating their own information around customers. Basel II requires these organisations to have a single view of each of their customers," says Glen Miller, CEO of The Webcom Group. "With our integrated product set, achieving this compliance becomes that much easier."
IntelliCredit is a Web-enabled Straight Through Processing (STP) credit approval and processing system. It is fully auditable, and driven by business processes to automate and manage credit applications from start to finish. The product set consists of a comprehensive data warehouse as well as a fully integrated risk model platform, with optional internal risk models that can scale. In addition, IntelliCredit can integrate with external risk models and credit bureaus.
Benefits of the system include more efficient service, as all relevant information and documentation is prompted for and can be obtained at the outset, as well as faster answers for customers, more accurate risk assessment and regularly updated information. For the financial institution this means improved turnaround times (a credit application can be processed within a few hours whereas previously it could take up to 10 days), greater productivity, massively reduced risk and ultimately, increased profitability.
"The product set can be fully customised in terms of layout, descriptions, lists and so on, to meet the exact needs of the client, with multi-language and multi-currency support," adds Miller. "The solution assists to reduce the risk ratings of financial services organisations allowing them to keep less capital in reserve, and can be easily integrated with existing processes to speed implementation and delivery."
eComply addresses the operational risk pillar of Basel II for financial services organisations. However, it also monitors compliance and governance according to any corporate standards that are defined by the company or external standards, such as Sarbanes Oxley.
eComply provides a single, integrated system to replace the many disparate systems that have been implemented ad hoc to try and deal with compliance in financial services institutions – spanning multiple organisations and countries. Having an end-to-end solution reduces the capital outlay and support and maintenance of a single solution lowers ongoing operational costs.
The solution provides a dashboard system with red, amber and green (RAG) statuses for easier interpretation and full drilldown capability to help measure anything from security risk to levels of compliance. It also provides a single snapshot view of compliance status across the enterprise, over multiple control frameworks and groups at any point in time. Information is extracted from existing data sources or a third party data source.
eComply is flexible and can be linked to policies (either internal or external) that form the 'framework' of compliance within an organisation. Rather than relying solely on manual input, the solution is automated with built-in logic that provides recommended actions and questions within processes. The solution can default an action and provide corrective measures to remediate.
Concludes Miller: "Financial services and banking institutions need to monitor and manage risk more effectively more than ever, and our solution delivers this capability at a fraction of the cost of competitive solutions that only address certain elements of Basel II and compliance requirements. The solution lies in a holistic product set that addresses risk, delivering segregated and consolidated information that spans the entire institution, allowing a company to make informed and calculated decisions necessary to weather the downturn and prepare them for change in economic climates. We are delivering just that."