Purpose: SME loan data input, processing, rating, SME lending decision support, SME loan account management.
Banks need Scorto™ Loan Manager because:
- Because bad debts are costlier for SME debts than for other retail loans
- Skilled resources should be used efficiently, and no one can provide aid for this like Scorto
- Operational costs for SME loans should be decreased, and operational efficiency increased
- Tough competition on SME market requires constant credit strategies improvement and correct performance measurement
Concept and Key tasks:
- Financial analysis of a would-be borrower’s business Automation of SME loan application processing
- Risk-based pricing
- Credit risk assessment throughout the entire loan lifecycle
- Companies scoring, rating and segmentation
- Evaluation of payment dynamics, credit risk assessment and estimation of PD, EAD and LGD and other parameters required for calculating the RWA (Basel 2)
- Cross-Sell/Up-Sell decision support
- Business Rules/Process Management for SME lending
- Automated re-evaluation of default risk and financial ratios for SME analysis
Value Proposition
- Complete SME Lending Business Rules, Business Process, and Risk Management System
- Incredibly intuitive and easy to use with simple drag-drop, and point & click user interfaces
- Capable of scoring project-based, trade based, simple commercial loans, and other types of programs
- Designed specifically for SME lending (not a customized version of a tool designed for consumer lending)
- Applicable to multiple lending vehicles and program types
- Provides some CRM functionality
- Low level of involvement from expensive resources (IT Staff, etc.) for regular operational needs or changes
Examples of Industries and Applications:
- Banking and Finance:
- Automation for all aspects of the SME Loan Lifecycle
- Credit risk scoring, management and automated re-evaluation of various aspects of the small and mid-sized business
- Factoring companies:
- Evaluation of small and medium business before purchasing from them accounts receivable
- Large manufacturers and wholesalers
- Making decisions about providing trade credit lines to distributors and retail shops
- Government funds for small business support
- Selecting right targets for financial assistance (loans or investments)