Cover Image
Market Research Report

Solution Guide to Credit Risk Management in Banking

Published by Ovum (TMT Intelligence, Informa) Product code 166552
Published Content info 56 Pages
Delivery time: 1-2 business days
Price
Back to Top
Solution Guide to Credit Risk Management in Banking
Published: January 11, 2011 Content info: 56 Pages
Description

Abstract

Introduction

While governments and regulatory bodies are trying to revive their economies and are putting banks under pressure to increase their lending, the industry' s ability to manage credit risk remains weak. This situation is boosting a re-evaluation of credit risk management processes and the underlying technologies to minimize the exposure to current and future credit losses.

Features and benefits

• Identifies the technology vendors banks should shortlist when considering the purchase of a credit risk management solution
• Provides a comparative technology assessment of the credit risk management solutions offered by leading vendors in the banking market
• Identifies the credit risk management solution providers that have the most impact on the banking market
• Offers visibility into how well different credit risk managemetn solutions support the entire credit lifecycle

Highlights

Credit risk in many cases is the entry point of addressing other interconnected risk areas (such as market or liquidity risks), with the twin drivers being regulatory changes and the now all-too-obvious need for improved exposure aggregation capabilities.The technology evaluation criteria should be focused on areas that relate to banking credit risk management strategy: reliability, commitment to the banking sector, and rich capabilities.

Your key questions answered

• What are the strengths and weaknesses of leading credit risk management vendors and their solutions?
• What vendors and their solutions should be shortlisted for a credit risk management project?
• What vendors offer best credit risk functionality and underlying technology?

Table of Contents
Product Code: OI00039-027

Table of Contents

SUMMARY


Catalyst


Ovum view


Key messages


Credit risk is a vital component of overall risk mitigation


Banks need better tools to mitigate credit risk exposure


Banks should to focus on reliability, commitment, and rich capabilities when assessing vendors



MARKET DEVELOPMENTS


Organizations must revisit their credit risk processes


Credit risk must be treated as a component of a wider risk strategy


Banks should focus on a framework approach when evaluating credit risk technology


Business intelligence and analytics are required for stronger credit risk oversight



SOLUTION GUIDE TO CREDIT RISK MANAGEMENT IN BANKING


The competitive landscape


Assessment and positioning


Market leaders: SAS, SunGard


Challengers: Algorithmics, FICO, SAP


Niche competitors: FinArch, FRSGlobal, Misys



GENERAL ASSESSMENT


Market leaders


Market impact assessment


Credit risk functionality assessment


Technology assessment



VENDOR ANALYSIS


Algorithmics


Recommendation: Consider



FICO


Recommendation: Consider


FinArch


Recommendation: Explore


FRSGlobal


Recommendation: Explore


Misys


Recommendation: Explore



SAP


Recommendation: Consider


SAS Institute


Recommendation: Shortlist


SunGard


Recommendation: Shortlist



APPENDIX


Ovum ratings


Methodology


Extended methodology


Market impact


Credit risk functionality


Technology


Further reading


Definitions


Author


Ovum Consulting


Disclaimer



Back to Top