Company  Profile  Credit BASELine ‘ A  commercial credit portfolio management system for the Basel II empowered financial ...
Agenda <ul><li>Overview of the Company Offerings </li></ul><ul><li>Key Members  </li></ul><ul><li>The Company view on Cred...
What is Credit BASELine <ul><li>Commercial Loan Portfolio Origination Process / Workflow </li></ul><ul><ul><li>Review exis...
Who is Credit BASELine <ul><li>Offices in Hong Kong, Brisbane, Sydney and Adelaide  </li></ul><ul><li>Began in 2003 to ass...
The Key Members of the Team <ul><li>Stephen Parton – Principal/ Founder </li></ul><ul><li>Steve has over 25 years experien...
Why CreditBaseLine <ul><li>Web Based to Reduce Your Cost of Credit Portfolio Management </li></ul><ul><li>Flexible - Open ...
Credit BASELine Services <ul><li>Credit Baseline personnel work with client staff to implement solutions. </li></ul><ul><l...
Data Warehouse <ul><li>The core of the Credit Baseline system is a data warehouse .  </li></ul><ul><ul><li>Mapping and Nav...
CreditBaseLine  March 2009 Round the Clock Credit Portfolio Management Credit BASELine – Functionality
Credit Portfolio Management  – Round The Clock   CreditBaseLine  March 2009
Step 1. Credit Navigation Customer Data Mining <ul><li>Purpose of the Component   </li></ul><ul><li>Tracking and storing o...
  Step 2 .   Credit Navigation Customer Financial Analysis <ul><li>Purpose of Component   </li></ul><ul><li>Tracking and s...
  Step 3. Credit Navigation External Credit Benchmarking <ul><li>Purpose of Benchmarking Component </li></ul><ul><li>Provi...
Step 4. Credit Navigation Internal Credit Risk Grading Portfolio System   <ul><li>Purpose of Component </li></ul><ul><li>G...
Step 5. Credit Navigation Deal Entry and Risk Adjusted Pricing <ul><li>Purpose of Component   </li></ul><ul><li>Capture an...
Step 6. Credit Navigation Commercial Loan Application Form <ul><li>Purpose of Component   </li></ul><ul><li>Standardisatio...
Step 7. Credit Navigation Deal Pipeline Tracker <ul><li>Purpose of Component   </li></ul><ul><li>Track lending performance...
Step 8. Credit Navigation Annual Review Prioritisation <ul><li>Purpose of Component   </li></ul><ul><li>Use credit risk as...
Step 9. Credit Mapping Credit Risk Quantification <ul><li>Purpose of Component   </li></ul><ul><li>Calculate credit risk b...
Step 10. Credit Mapping Portfolio Scenario and Stress Testing <ul><li>Purpose of Component   </li></ul><ul><li>Test impact...
Step 11. Credit Mapping Portfolio Scenario and Stress Testing <ul><li>Purpose of Component   </li></ul><ul><li>Test impact...
Step 12. Credit Mapping Portfolio Reporting Tools <ul><li>Purpose of Component   </li></ul><ul><li>Production of on-line a...
Step13. Credit Mapping Dashboard Controls <ul><li>Purpose of Component   </li></ul><ul><li>Customer and Portfolio built-in...
Credit Baseline Technical Architecture CreditBaseLine  March 2009 Oracle Database <ul><li>Access Tools: </li></ul><ul><li>...
The BI Environment CreditBaseLine  March 2009 Data Warehouse (Oracle Discoverer or other)   Ad Hoc Reporting Developed by ...
Credit BASELine – Credit Portfolio Risk Management with a Basel II Focus   CreditBaseLine  March 2009 Credit BASELine <ul>...
Credit BASELine Commercial Loan Origination CreditBaseLine  March 2009 Credit BASELine <ul><li>User Inputs </li></ul><ul><...
  CreditBaseLine Software Demo Demo CreditBaseLine  March 2009
Future Development of a New Main Menu CreditBaseLine  March 2009 <ul><li>To better access additional modules currently und...
Future Workplace <ul><li>Workflow management </li></ul>CreditBaseLine  March 2009 User Workplace Baseline Server Manage lo...
Credit Portfolio Management - Modules <ul><li>Small business </li></ul><ul><ul><li>Customer Dashboard  </li></ul></ul><ul>...
Pricing <ul><li>Dependent on Customer requirements , modules etc </li></ul><ul><li>Pricing Structure  </li></ul><ul><ul><l...
The Way Forward <ul><li>One Week Evaluation Period </li></ul><ul><li>One Months pilot period with the bank data </li></ul>...
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Credit Base Line Profile March 09

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Credit Base Line Profile March 09

  1. 1. Company Profile Credit BASELine ‘ A commercial credit portfolio management system for the Basel II empowered financial institution, in a post sub-prime credit world’ www.CreditBaseLine.com March 2009
  2. 2. Agenda <ul><li>Overview of the Company Offerings </li></ul><ul><li>Key Members </li></ul><ul><li>The Company view on Credit Portfolio Management </li></ul><ul><li>Demonstration of the System </li></ul><ul><li>Module pricing </li></ul><ul><li>Forward Approach </li></ul>CreditBaseLine March 2009
  3. 3. What is Credit BASELine <ul><li>Commercial Loan Portfolio Origination Process / Workflow </li></ul><ul><ul><li>Review existing client relationship </li></ul></ul><ul><ul><li>Load client financials and serviceability details </li></ul></ul><ul><ul><li>Benchmark external credit rating (Moody’s) </li></ul></ul><ul><ul><li>Modify Internal credit grading (CRGS per APS220) </li></ul></ul><ul><ul><li>Review industry and credit portfolio risk </li></ul></ul><ul><ul><li>Enter and rationally price the prospective deal </li></ul></ul><ul><ul><li>Deliver populated loan application for loan manager completion </li></ul></ul><ul><li>Credit Portfolio Risk Analytics </li></ul><ul><ul><li>Calculate Expected Loss (EL) by client and portfolio across all lending portfolios </li></ul></ul><ul><ul><li>Map risk profile (Exposure/EL) by industry/geography /portfolio/time series etc </li></ul></ul><ul><ul><li>Stress test portfolio risk </li></ul></ul><ul><ul><li>Review credit migration patterns </li></ul></ul><ul><li>Open Coded IT Technology </li></ul><ul><ul><li>Industrial strength Oracle 11g database, web based (Oracle APEX) front end. </li></ul></ul><ul><li>‘ Slice and Dice’ reporting capability </li></ul><ul><ul><li>Organised in a fully scalable data warehouse with business intelligence (BI) tools. </li></ul></ul>CreditBaseLine March 2009
  4. 4. Who is Credit BASELine <ul><li>Offices in Hong Kong, Brisbane, Sydney and Adelaide </li></ul><ul><li>Began in 2003 to assist corporations with the impending introduction of Basel II. </li></ul><ul><li>Consultancy and training services provided with potential to leave behind Credit BASELine system to assist in ongoing credit risk management. </li></ul><ul><li>Ongoing banking and technology support provided. </li></ul><ul><li>Contact details: WWW.CreditBaseLine.com </li></ul>CreditBaseLine March 2009
  5. 5. The Key Members of the Team <ul><li>Stephen Parton – Principal/ Founder </li></ul><ul><li>Steve has over 25 years experience in banking and corporate financial management. In 1995, Steve moved to Brisbane and established his corporate financial management consultancy, focussed largely on credit portfolio management and infrastructure evaluations . </li></ul><ul><li>Michael Oswald – Principal/ Founder </li></ul><ul><li>Michael has over 30 years experience in executive financial management, specialising in designing and delivering commercial financial management solutions. Michael’s experience is focussed on the delivery of effective workflow and compliant based technology processes. </li></ul><ul><li>Andrew Dodd – Asia Pacific Director </li></ul><ul><li>Andrew’s original background in banking and credit was with Fuji Bank in a special lending unit, followed by the role of Regional Asia Pacific Director of UK-based consulting firms DC Gardner and BPP. He was then VP of Asia Pacific for Moody’s KMV for over eight years, before taking on roles with equity IT base firms Paritech and Corporate Scorecard in Australia. </li></ul>CreditBaseLine March 2009
  6. 6. Why CreditBaseLine <ul><li>Web Based to Reduce Your Cost of Credit Portfolio Management </li></ul><ul><li>Flexible - Open Coded System -Reduces Costs </li></ul><ul><li>Responsive Compliance Reporting </li></ul><ul><li>Workflow and Process Flow Aligned </li></ul><ul><li>Rational Commercial Credit Portfolio Pricing Focus </li></ul>CreditBaseLine March 2009
  7. 7. Credit BASELine Services <ul><li>Credit Baseline personnel work with client staff to implement solutions. </li></ul><ul><li>Solutions focus on credit risk and capital management under the Basel II regime, including: </li></ul><ul><ul><li>Commercial loan origination processes, supported by the Credit BASELine solution. </li></ul></ul><ul><ul><li>Loss Given Default, Expected Loss and Unexpected Loss analyses, using stress testing techniques. </li></ul></ul><ul><ul><li>Risk adjusted Pricing </li></ul></ul><ul><ul><li>Compliance - Credit exception and Credit approval hindsight reviews and related analysis </li></ul></ul><ul><ul><li>ICAAP analyses as per Pillar 2. </li></ul></ul><ul><ul><li>Change management - streamline processes using Credit BASELine and other workflow tools. </li></ul></ul><ul><li>Training is provided on credit BASELine, the credit process and credit and financial markets theory. </li></ul><ul><li>Initial services and consultancy can result in leave behind tools for use by client staff. </li></ul>
  8. 8. Data Warehouse <ul><li>The core of the Credit Baseline system is a data warehouse . </li></ul><ul><ul><li>Mapping and Navigation components, access and add to this warehouse </li></ul></ul><ul><ul><li>Key elements of the data warehouse are: </li></ul></ul><ul><ul><li>Existing exposure information - downloaded periodically from existing banking platform for lending portfolios – Commercial, Home and Personal </li></ul></ul><ul><ul><li>Potential new exposures - captured as part of new lending approval process. </li></ul></ul><ul><ul><li>Customer financials and credit benchmark information - captured as part of credit review and new </li></ul></ul><ul><ul><li>loan approval process </li></ul></ul><ul><li>While analytical focus is on commercial lending, Baseline also enables portfolio analysis on home and personal lending portfolios (eg enables stress testing of home lending portfolio ‘Panama’ analysis ). </li></ul>CreditBaseLine March 2009
  9. 9. CreditBaseLine March 2009 Round the Clock Credit Portfolio Management Credit BASELine – Functionality
  10. 10. Credit Portfolio Management – Round The Clock CreditBaseLine March 2009
  11. 11. Step 1. Credit Navigation Customer Data Mining <ul><li>Purpose of the Component </li></ul><ul><li>Tracking and storing of client financials (annual and interim Balance Sheet, Profit and Loss). </li></ul><ul><li>Evaluation of client serviceability based on current and prospective client borrowings </li></ul><ul><li>Financial ratio analysis. </li></ul><ul><li>Component Operations </li></ul><ul><li>Customer financials are entered for existing and potential customers. </li></ul><ul><li>Preferably for at least 2 years for proper credit benchmarking. </li></ul><ul><li>Input of client serviceability, based on financials but including other income and expense and calculating overall debt service coverage. </li></ul><ul><li>Financials can be input centrally or by loan managers in the field. </li></ul><ul><li>Key User </li></ul><ul><li>Credit Administration </li></ul><ul><li>Linkages within System </li></ul><ul><li>Used for credit benchmarking by Moody’s and internal credit grading </li></ul><ul><li>Stored by customer for trend analysis. </li></ul><ul><li>Able to download to Excel for further analysis </li></ul>CreditBaseLine March 2009
  12. 12. Step 2 . Credit Navigation Customer Financial Analysis <ul><li>Purpose of Component </li></ul><ul><li>Tracking and storing of client financials (annual and interim Balance Sheet, Profit and Loss). </li></ul><ul><li>Evaluation of client serviceability based on current and prospective client borrowings </li></ul><ul><li>Financial ratio analysis. </li></ul><ul><li>Component Operations </li></ul><ul><li>Customer financials are entered for existing and potential customers. </li></ul><ul><li>Preferably for at least 2 years for proper credit benchmarking. </li></ul><ul><li>Input of client serviceability, based on financials but including other income and expense and calculating overall debt service coverage. </li></ul><ul><li>Financials can be input centrally or by loan managers in the field. </li></ul><ul><li>Key User </li></ul><ul><li>Credit Administration </li></ul><ul><li>Linkages within System </li></ul><ul><li>Used for credit benchmarking by Moody’s and internal credit grading </li></ul><ul><li>Stored by customer for trend analysis. </li></ul><ul><li>Able to download to Excel for further analysis </li></ul>CreditBaseLine March 2009
  13. 13. Step 3. Credit Navigation External Credit Benchmarking <ul><li>Purpose of Benchmarking Component </li></ul><ul><li>Provision of objective measure of credit quality by individual credit and by portfolio. </li></ul><ul><li>Used as input to internal credit risk grading system (see following slide) </li></ul><ul><li>Standardisation of ‘language of risk’ within organisation. </li></ul><ul><li>Component Operations </li></ul><ul><li>Moody’s maintains commercial credit benchmarking databases </li></ul><ul><li>Database benchmarks the probability of default based on industry, size and customer financials. </li></ul><ul><li>Once financials are input into Credit Baseline, a credit benchmark can be requested by user via instantaneous web service – presented as 1Yr and 5Yr Expected Default Frequency (ie probability of default). </li></ul><ul><li>Key User </li></ul><ul><li>Credit Administration </li></ul><ul><li>Linkages within CreditBaseLine System </li></ul><ul><li>Key component to internal CRGS - Credit Risk Grading System </li></ul>CreditBaseLine March 2009
  14. 14. Step 4. Credit Navigation Internal Credit Risk Grading Portfolio System <ul><li>Purpose of Component </li></ul><ul><li>Grades credit portfolio clients according to pre-set criteria </li></ul><ul><li>Used for risk adjusted pricing, provisioning adequacy and portfolio quality review </li></ul><ul><li>Standardisation of ‘language of risk’ within organisation. </li></ul><ul><li>Component Operations </li></ul><ul><li>Establish grading methodology with Board/ALCO approval </li></ul><ul><li>Establish criteria and grading parameters in system – eg probability of default, serviceability, credit history etc. </li></ul><ul><li>Grade customers periodically </li></ul><ul><li>All history maintained in system </li></ul><ul><li>Key User </li></ul><ul><li>Credit Administration </li></ul><ul><li>Linkages within System </li></ul><ul><li>Key component to calculation of Expected Loss, used for </li></ul><ul><ul><li>risk adjusted pricing. </li></ul></ul><ul><ul><li>Review of loan loss provisioning adequacy </li></ul></ul>CreditBaseLine March 2009
  15. 15. Step 5. Credit Navigation Deal Entry and Risk Adjusted Pricing <ul><li>Purpose of Component </li></ul><ul><li>Capture and price potential deal using either product or credit pricing </li></ul><ul><li>Credit pricing: </li></ul><ul><ul><li>Price discrimination of good credit v bad credit adjusted for security coverage </li></ul></ul><ul><ul><li>Ability to ‘Price away’ bad credits </li></ul></ul><ul><ul><li>Counter ‘cherry-picking’ tactics by competitors (and enable cherry picking yourself) </li></ul></ul><ul><li>Component Operations </li></ul><ul><li>Lending margin broken into components : </li></ul><ul><ul><li>= transfer rate + cost of delivery + cost of capital + LVR/credit margin +/- discounts/other, </li></ul></ul><ul><ul><li>LVR/Credit Margin is based on calculated Expected Loss (in turn based on Exposure, LVR and PD) </li></ul></ul><ul><li>Calculated price is not mandatory in new lending, but is stored for exception reporting </li></ul><ul><li>Key Users </li></ul><ul><li>CFO </li></ul><ul><li>Linkages within System </li></ul><ul><li>Input to loan application process. </li></ul><ul><li>Can be used for existing portfolio pricing review </li></ul>CreditBaseLine March 2009
  16. 16. Step 6. Credit Navigation Commercial Loan Application Form <ul><li>Purpose of Component </li></ul><ul><li>Standardisation of loan approval process </li></ul><ul><li>Tracking of lending performance </li></ul><ul><li>Word doc loan application populated using : </li></ul><ul><ul><li>Customer details </li></ul></ul><ul><ul><li>Existing exposures and securities </li></ul></ul><ul><ul><li>Comparative name/address/industry customer Financials and serviceability (to 3 years) </li></ul></ul><ul><ul><li>Ratio analysis </li></ul></ul><ul><ul><li>Credit Benchmarking information </li></ul></ul><ul><ul><li>CRGS </li></ul></ul><ul><li>Loan application is then completed by loan managers external to system. </li></ul><ul><li>Key User </li></ul><ul><li>Loan Managers/Credit administration </li></ul><ul><li>Linkages within System </li></ul><ul><li>appropriate Initially, loan application will be stand-alone, ie maintained as a Word document not within BASELine (apart from system-populated fields). This will allow flexibility to adjust to business processes. </li></ul><ul><li>Loan application form can be more closely integrated with BASELine if and when deemed. </li></ul>CreditBaseLine March 2009
  17. 17. Step 7. Credit Navigation Deal Pipeline Tracker <ul><li>Purpose of Component </li></ul><ul><li>Track lending performance by lending officer branch etc: </li></ul><ul><ul><li>Hit rates and conversion factors </li></ul></ul><ul><ul><li>Win and loss margin levels </li></ul></ul><ul><li>Component Operations </li></ul><ul><li>Deal status is tracked over time as part of loan application form, together with calculated and actual margins </li></ul><ul><li>All changes or even accessing /printing of loan applications is tracked </li></ul><ul><li>This information is then included in BI reporting </li></ul><ul><li>Key Users </li></ul><ul><li>Senior management for lending performance tracking </li></ul><ul><li>Linkages within System </li></ul><ul><li>Limited to reporting </li></ul>CreditBaseLine March 2009
  18. 18. Step 8. Credit Navigation Annual Review Prioritisation <ul><li>Purpose of Component </li></ul><ul><li>Use credit risk as a basis for prioritising annual reviews, ie more important where </li></ul><ul><ul><li>LVR is high </li></ul></ul><ul><ul><li>Credit Quality is low </li></ul></ul><ul><ul><li>Combination of the above </li></ul></ul><ul><li>Component Operations </li></ul><ul><li>A credit migration report (tracking change in credit rating year on year exists) </li></ul><ul><li>A report enabling filtering by LVR and rating is in development (this is a simple report) </li></ul><ul><li>Key Users </li></ul><ul><li>Credit Administration </li></ul><ul><li>Linkages within the System </li></ul><ul><li>Input to loan application process. </li></ul><ul><li>Can be used for existing portfolio pricing review </li></ul>CreditBaseLine March 2009
  19. 19. Step 9. Credit Mapping Credit Risk Quantification <ul><li>Purpose of Component </li></ul><ul><li>Calculate credit risk by customer and portfolio </li></ul><ul><li>Mapping current credit quality of portfolio: </li></ul><ul><ul><li>Absolute level </li></ul></ul><ul><ul><li>Trends </li></ul></ul><ul><ul><li>Diversification </li></ul></ul><ul><li>Assist in provisioning </li></ul><ul><li>Component Operations </li></ul><ul><li>Calculate Loss Given Default (LGD) and Expected Loss (EL) based on LVR, security type, EAD, Recovery Rate and EAD assumptions by client and connection. </li></ul><ul><li>Transparent calculation in Expected Loss screen with ability to ‘slice and dice’, for example by portfolio, industry, geography. </li></ul><ul><li>Credit migration reporting functionality </li></ul><ul><li>Key Users </li></ul><ul><li>Credit Admin and Senior Credit Management </li></ul><ul><li>Linkages within System </li></ul><ul><li>Key outcome of system </li></ul><ul><li>Portfolio and stress testing analyses </li></ul>CreditBaseLine March 2009
  20. 20. Step 10. Credit Mapping Portfolio Scenario and Stress Testing <ul><li>Purpose of Component </li></ul><ul><li>Test impact on LGD and EL and other key risk measures at portfolio level etc </li></ul><ul><li>Test adequacy of provisioning and reserve requirements (ie expected and unexpected loss) </li></ul><ul><li>Component Operations </li></ul><ul><li>Main functionality is via the Expected Loss Report, which can be manipulated on-screen to enable above analyses. </li></ul><ul><li>Expected Loss Report can also be referenced by other queries and reports to facilitate slice and dice analysis of credit risk </li></ul><ul><li>Key Users </li></ul><ul><li>Senior Credit Management </li></ul><ul><li>Linkages within System </li></ul><ul><li>Key outcome of system </li></ul>CreditBaseLine March 2009
  21. 21. Step 11. Credit Mapping Portfolio Scenario and Stress Testing <ul><li>Purpose of Component </li></ul><ul><li>Test impact on LGD and EL and other key risk measures at portfolio level etc </li></ul><ul><li>Test adequacy of provisioning and reserve requirements (ie expected and unexpected loss) </li></ul><ul><li>Component Operations </li></ul><ul><li>Main functionality is via the Expected Loss Report, which can be manipulated on-screen to enable above analyses. </li></ul><ul><li>Expected Loss Report can also be referenced by other queries and reports to facilitate slice and dice analysis of credit risk </li></ul><ul><li>Key Users </li></ul><ul><li>Senior Credit Management </li></ul><ul><li>Linkages within System </li></ul><ul><li>Key outcome of system </li></ul>CreditBaseLine March 2009
  22. 22. Step 12. Credit Mapping Portfolio Reporting Tools <ul><li>Purpose of Component </li></ul><ul><li>Production of on-line and hard copy reporting: </li></ul><ul><ul><li>Standard management reports. </li></ul></ul><ul><ul><li>Ad hoc reporting by analysts </li></ul></ul><ul><ul><li>Slice and Dice capabilities. </li></ul></ul><ul><li>Component Operations </li></ul><ul><li>Reporting components built into Credit Baseline system but also feed to data warehouse </li></ul><ul><li>Business Intelligence – based on Discoverer (potentially moving to Siebel) but compatible with all main BI products </li></ul><ul><li>Additional reporting tools (Oracle reports, Crystal reports etc). </li></ul><ul><li>Key Users </li></ul><ul><li>All authorised users </li></ul><ul><li>Linkages within System </li></ul><ul><li>Key outcome of system </li></ul>CreditBaseLine March 2009
  23. 23. Step13. Credit Mapping Dashboard Controls <ul><li>Purpose of Component </li></ul><ul><li>Customer and Portfolio built-in dashboards for immediate one-stop review </li></ul><ul><li>Component Operations </li></ul><ul><li>APEX based dashboards specific to role to show KPIs and can also include non BASELine functionality </li></ul><ul><li>Portfolio dashboards to assist relationship managers and management to track portfolio and branch performance. </li></ul><ul><li>Key Users </li></ul><ul><li>Relationship managers </li></ul><ul><li>Linkages within System </li></ul><ul><li>Front end screen with linkages to related activities </li></ul>CreditBaseLine March 2009
  24. 24. Credit Baseline Technical Architecture CreditBaseLine March 2009 Oracle Database <ul><li>Access Tools: </li></ul><ul><li>Web Pages </li></ul><ul><li>Dash </li></ul><ul><li>Boards </li></ul><ul><li>BI tools </li></ul>Data Warehouse Web front end (Oracle Application Express) Auto Data Feeds - Current Lending Portfolio (all portfolios) - Risk Models - Customer financials (optional) The Bank User <ul><li>History Stored </li></ul><ul><li>Lending Portfolio </li></ul><ul><li>Financials </li></ul><ul><li>CRGS </li></ul><ul><li>Won/Lost Deals </li></ul>User Applications - Loan Origination - Portfolio Analytics Credit Risk Management) Performance Management
  25. 25. The BI Environment CreditBaseLine March 2009 Data Warehouse (Oracle Discoverer or other) Ad Hoc Reporting Developed by staff as required in user-friendly environment as required for specific one off analyses Users Requirements “ Imagine seeing a coral reef from a new glass bottomed boat, and you get an understanding of the richness of the vision, now available within your credit database” Quoted by Credit BASELine Director Michael Oswald <ul><li>‘ Pack Canned’ Board / Mgmt Reporting </li></ul><ul><li>Eg: </li></ul><ul><li>Credit Risk Pack </li></ul><ul><li>Performance </li></ul>Extensive ‘Slice and Dice’ capabilities accessible from function specific Dashboards for:
  26. 26. Credit BASELine – Credit Portfolio Risk Management with a Basel II Focus CreditBaseLine March 2009 Credit BASELine <ul><li>User Inputs </li></ul><ul><li>CRGS adjustments </li></ul><ul><li>Recovery Rates and other Expected Loss stress parameters </li></ul>Web Application <ul><li>Application Outputs </li></ul><ul><li>LGD/EL/UL </li></ul><ul><li>Concentration indices by industry, geography etc </li></ul><ul><li>Credit Migration </li></ul><ul><li>Exposure Concentration </li></ul><ul><li>Expected Loss </li></ul><ul><li>Stress testing </li></ul><ul><li>Arrears Analysis </li></ul>
  27. 27. Credit BASELine Commercial Loan Origination CreditBaseLine March 2009 Credit BASELine <ul><li>User Inputs </li></ul><ul><li>Financial statements </li></ul><ul><li>Borrower details </li></ul><ul><li>Facility details </li></ul><ul><li>Borrower history </li></ul><ul><li>CRGS </li></ul><ul><li>Pricing </li></ul>Web Application <ul><li>Application Outputs </li></ul><ul><li>Populated Loan Application word document </li></ul><ul><li>Pricing (potentially risk adjusted) </li></ul><ul><li>Credit Admin monitoring workflow </li></ul><ul><li>Risk Profile </li></ul><ul><li>Flow into the B.I Model </li></ul><ul><li>Flow in Expected Loss models </li></ul><ul><li>Pipeline Tracking </li></ul>
  28. 28. CreditBaseLine Software Demo Demo CreditBaseLine March 2009
  29. 29. Future Development of a New Main Menu CreditBaseLine March 2009 <ul><li>To better access additional modules currently under development: </li></ul><ul><li>Credit Exceptions </li></ul><ul><li>Credit Hindsight Reviews </li></ul><ul><li>Sales </li></ul><ul><li>etc </li></ul>
  30. 30. Future Workplace <ul><li>Workflow management </li></ul>CreditBaseLine March 2009 User Workplace Baseline Server Manage loans Credit BASELine Portfolio Analysis Risk Migration BI Server BI Dashboard
  31. 31. Credit Portfolio Management - Modules <ul><li>Small business </li></ul><ul><ul><li>Customer Dashboard </li></ul></ul><ul><ul><li>‘ Fast Track’ CRGS and loan process </li></ul></ul><ul><ul><li>Short form Loan Application Form (populated into MS Word) </li></ul></ul><ul><ul><li>Portfolio Analytics </li></ul></ul><ul><li>Commercial, as above plus </li></ul><ul><ul><li>Financial Statement entry and storage </li></ul></ul><ul><ul><li>External credit benchmarking </li></ul></ul><ul><ul><li>Internal CRGS </li></ul></ul><ul><ul><li>Full Loan Application Form (populated into MS Word) </li></ul></ul><ul><ul><li>Expected Loss Calculation </li></ul></ul><ul><ul><li>Stress Testing and other portfolio analytics </li></ul></ul><ul><li>Business Intelligence </li></ul><ul><ul><li>Data Warehouse </li></ul></ul><ul><ul><li>BI tools - Oracle Discoverer, Seibel etc </li></ul></ul><ul><ul><li>Functional Dashboards – credit admin, operations etc </li></ul></ul>CreditBaseLine March 2009
  32. 32. Pricing <ul><li>Dependent on Customer requirements , modules etc </li></ul><ul><li>Pricing Structure </li></ul><ul><ul><li>Credit BASELine License Fee per annum </li></ul></ul><ul><ul><li>Support Fee per annum </li></ul></ul><ul><ul><ul><li>Technical </li></ul></ul></ul><ul><ul><ul><li>Business </li></ul></ul></ul><ul><ul><li>Training as required </li></ul></ul><ul><ul><li>Implementation Consultancy as required </li></ul></ul><ul><ul><li>Change management consultancy as required </li></ul></ul><ul><li>Other Costs </li></ul><ul><ul><li>Risk Model Fee (eg RiskCalc) if required </li></ul></ul><ul><ul><li>Oracle 11g Database Cost </li></ul></ul><ul><ul><li>Business Intelligence Software </li></ul></ul><ul><ul><li>Hardware as required </li></ul></ul>CreditBaseLine March 2009
  33. 33. The Way Forward <ul><li>One Week Evaluation Period </li></ul><ul><li>One Months pilot period with the bank data </li></ul><ul><li>Focus Workshop </li></ul><ul><li>Training of Users plus Train the Trainer </li></ul><ul><li>Implementation of the system </li></ul><ul><li>Training of first level of support </li></ul>CreditBaseLine March 2009

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