Detect loan default and act on it in time or lose billions of dollars! Banks and financial institutions are at such a crossroad today and losing billions of dollars every year to credit default. Coforge’ Digital Foresight Financial Intelligence solution can help them see, foretell, and act on the information in time. The solution provides lenders a clear path that helps them identify, locate, and analyze characteristics of emerging credit default.
Loss of billions of dollars and capital is due to loan default that emerges rapidly and goes undetected by the lender. However, these rapidly emerging default circumstances are highly discernable. Organizations can easily see, foretell, and act upon the default in time at the individual credit level with the help of Digital Foresight.
Events in the day-to-day life of an individual or a business can materially affect their ability to fulfill financial obligations on time, or not at all. It’s a big blow for financial institutions if they are not able to forecast emerging defaulters in time.
The impact on the financial institutions for not forecasting emerging defaults in time is grave:
Coforge’ Digital Foresight Financial Intelligence solution helps lenders in reducing risks. It is not a static reporting mechanism but a solution that tags, tracks, and reports in real time the rapidly emerging credit risk to the financial institution, at the individual credit level. It provides Business Intelligence as a Service to financial institutions, with the capability to attain customer knowledge and assess the likelihood of default.
The solution carries out real-time harvesting and assimilation of relevant credit risk event data, information, and intelligence. It has the ability to disseminate that intelligence with clarity to the lender for timely action. The core components of the solution include:
The high likelihood of credit default is presented in the form of indications and warnings. You can easily discern rapidly emerging default with the help of our highly experienced financial experts from various intelligence and national law enforcement communities. Our overarching methodology consists of a two-level target strategy—macro and micro analysis. Top-level macro analysis applies geospatial intelligence techniques to determine the highest value market areas. The second level moves from macro to micro analysis and focuses on understanding individual credits (individuals, small to middle market commercial businesses, business owners of commercial risks).
Vast amounts of information are collected by taking data, information, and intelligence found in an equally vast Web of social networks and open domain resources. The information collected is then used to determine credit default that further predicts borrowers’ values and behavior. Digital Foresight examines borrowers’ pattern-of-life events—business contraction, business growth, marriage, divorce, legal woes, and so on. In each instance, the second-level of analysis finds, assesses, and quantifies the cause and effect of patterns of life (harvested through open domains) and defines how these events can influence the continuation of credit-worthiness and compliance. The observations are accordingly quantified and modeled, unfolding the need to understand the ever-changing and sharpening of new events in the life of the credit. It also drives home actionable understanding for the banker and the need to interdict emerging risk by restructuring the loan, selling the paper, and taking an orderly and managed write down.
By fusing internal customer data with external data (government bureaus, newsfeeds, financial reporting, public records, etc.), Digital Foresight can identify with high confidence borrowers who are likely to default in the near future.
Coforge is a leading IT solutions organization, servicing clients in North America, Europe, Asia, and Australia. We have been serving the banking and financial services industry for more than 15 years and support more than $1.5 trillion Assets under Management (AUM), more than 6000 financial advisors, and service more than 1.5 million end customers. With our service vision to deliver “New Ideas More Value,” we aim at providing service excellence to our clients through our capability and expertise in this domain: