In the modern business arena the corporate world is in a real need for integrated information and technology applications in the global financial services industry. This requires developing individual workflow solutions that answer the specific data and analysis needs. The situation has forced the financial service providers to look for interoperable and portable software products and comprehensive databases to work seamlessly together, and often coexistent with the existing Legacy systems. Under this circumstances IT industry has come to the aid of the financial sector, that includes the solutions from print-based to real-time, available via the web or integrated into existing platforms. Diverse and innovative access solutions give clients the flexibility to get the current information they need with ultimate convenience.
Ontrack?s capability in Credit and Risk management System
Electronic Credit Evaluation System
The Electronic Credit Evaluation System is the first of a number of software products that comprises a suite of automated Credit Evaluation Software developed and implemented for the financial institutions.
The Electronic Credit Evaluation System has been specifically designed to allow lenders to process credit applications received from small-to-medium sized enterprises and consumers in one comprehensive and modular platform.
The salient features of the system are :
- Focus on credit quality
- Accelerate loan approvals safely
- Simplify and reduce credit-processing costs
- Improve controls over micro & macro credit risk
- Cross-sell further loan products
- Complement existing in-house systems
The framework of the system is pivotal around the following 4 key steps-
- Capturing Credit Application: This determines whether requested credit meets formal credit policy requirements of the Financial Institution and collects financial and other relevant information necessary to screen the credit request.
- Evaluating Credit Application: This module checks the background of the potential borrower. Information regarding existing debt and the value of assets offered as security are looked into.
- Make Credit Decision: In this step the key decision whether to grant credit to the applicant is taken after thorough evaluation of the creditworthiness of the applicant. This module also assesses the risks of granting credit and helps in pricing dependent on the risk.
- Credit Closure: This closing module structures and documents the credit to the mutual satisfaction of the borrower and the lender.
Loan Operation System (LOS) is a framework for automating the functions of any government rural banks disbursing Loans at the rural level. Ontrack Systems has implemented the framework at the Rural Development Banks of the Government of West Bengal state in India.
The LOS system facilitates:
- Maintaining loan case/sanction details
- Maintaining membership/bonds/shareholder details
- Keeping block/purpose wise personal loan ledger
- Processing of loan requisition-cum-disbursement certificates for apex body
- Raising principal and interest demand
- Keeping track of different type of payments with account heads by raising abstract
- Preparation of different type of receipts
- Preparation of fortnightly return
- NPA calculation and provisioning
- Provide a mechanism for sharing of information, knowledge and experiences
- Enable better communication through a network
The solution has been devised upon the following functional modules.
The following activities are performed under this module-
- Capturing the loan case details
- Generation of loan case no.
- Collection of different fees
- Keeping the status of the loan sub-committee meeting
- Bond / Membership registration
Sanction and Disbursement
The major activities in this section are as follows-
- Sanction no. generation
- Preparation of sanction intimation letter
- Pay schedule preparation
- Voucher generation
The disbursements under same sector, purpose, ROI, repayment period are clubbed into a single group identified as ?Pronote?. The Pronotes are uniquely identified by a Pronote no. that is automatically generated by the system. Then a number of Pronotes are grouped into a ?Pronote Memo? with a forwarding letter and date. Pronote memo is uniquely identified by memo no. So a user at any point can prepare the pronote with forwarding letter by supplying the sector, purpose, ROI and repayment period details and forward to the Apex Body for disbursement against the DCs.
So when the DCs are generated from the system a flag is maintained by the system to keep track of the dispatched DCs.
Demand & NPA
The following activities were covered in this area-
- Demand generation
- Receipt processing
- NPA calculation
Remittance to Apex
This module includes-
- Loan realization to Apex
- Fortnightly process report
The pronotes, sent to the Apex, are processed and the amount either adjusted or paid as loan to the member bank based on account head maintained by the LOS system.