ARX ANALYTICS & ADVISORY

The Small and Medium Enterprise banking module offers an end to end client management system starting from identifying prospects to establishing relationships. It includes online credit approvals and follow-through process and monitoring the outstandings until the loan is repaid or it is restructured or goes into default. The online approvals have supporting financial analytics and domestic credit rating models. In addition the institutions have the ability to monitor the performance of the client coverage team. Senior Management also has the ability to monitor the performance of the portfolio and generate customized specialized reports.

SME Lead Management

This module provides details of every new contact or prospective SME client, approached by the bank, information on call memos generated and the follow-up action required.

Performance Evaluation
It enables the team leaders and the sales officers to work collaboratively on all follow-ups to the call memos, reassign the prospects amongst the teams for regular maintenance of accounts. It also provides the Senior Management, specialized reports summarizing the credit approval status, new prospects and calls/visits to help monitor the productivity of various teams.

SME Credit Lifecycle

The Credit Lifecycle module incorporates all the necessary modules from the initiation of the credit proposals, the credit ratings, collateral coverage, loan monitoring (both pre and post disbursement), loan disbursement, and asset recovery management and calculating of loan loss provisions. The Credit Lifecycle also enables Senior Management to monitor the performance of the entire portfolio by selecting criteria such as industry, geography and rating.

Credit Approval

The online credit approval system enables the sales officer or the team leader to create a credit approval by sending requests to different levels of the risk committees depending on the branches and approval limit (level). The SME rating model integrated with the system enables risk rating of the client and consideration of the collateral. The system provides the flexibility to replace our credit rating model with that the banks existing rating model.
Loan Monitoring
- Pre-Disbursement
- Post-Disbursement
  
  Post Disbursement, the monitoring is done to ensure that the performance of the borrower/issuer is consistent with the terms and conditions of the agreement. It also monitors the collateral value and sends out alerts to the relevant people.
Asset Recovery Management

In the event that a loan becomes overdue, this module enables the institution to monitor the actions taken to either restructure or recover the loan, or by liquidating the collateral.
Loan Loss Provisioning

Depending on the performance of the portfolio it calculates the Loan Loss Provision as required by Basel II.
Analytics

The supporting analytics sub-module provides the user the platform to view various financials of SME clients in the database and enables thecredit to be evaluated against its industry peer group for selected credit ratios. Based on the peer group and ratios selected it identifies thebest in class” SME client. This is a comparative performance ranking based on the SME peer group selected.

SME Risk Rating

The SME Rating Model enables the credit rating of small and medium enterprises through quantitative and qualitative rating models based on financial ratios and company and industry specific parameters. The ratings can be availed only as domestic local currency risk ratings. The rating methodologies of the models are in compliance with the Basel II guidelines.

We will work with the institution using their in country data base to validate the domestic rating models. Where desired we would be happy to embed the bank’s existing rating models into the system if so desired.

Credit Rating

The rating module enables the credit rating of corporate clients through quantitative and qualitative rating models based on financial ratios and company and industry specific parameters. The ratings can be availed both as domestic local currency risk ratings. The models follow the criteria laid down by Basel II.

We will work with the institution using their in country data base to validate the domestic rating models. We would be happy to embed the bank’s existing rating models into the system if so desired.

ARX Portfolio Management

Bank Portfolio Monitoring

The Bank Portfolio Monitoring module enables the entire loan portfolio to be reviewed by geography, industry, ratings or performance.
Loan Migration

ARX has developed stochastic model based on Markov chain principle which predicts transition probabilities of various loan delinquency states.
Specialized Reports

Summarizes the credit approval status at various stages to help monitor the productivity and performance of various teams.