GlobalVision Systems Solutions – Finmanna™ Credit Risk Management Solution
Heavy regulation and FDIC protection have established great public confidence in the banking system, and have also created tremendous competition among banks. As a result, customers have great latitude in shopping around and bankers have to take an additional amount of risk in order to stay in business. There is no doubt that banks are in the business of managing risks.
Many bankers are still depending on backward-looking accounting reports to manage their businesses. Accounting reports tell bankers where they came from, whereas risk management tells bankers where they should be going and how to get there. Regulatory agencies have been educating bankers on the importance of risk management for the past ten years. In fact, risk management has become an independent field of study in business schools.
Nevertheless, risk management to many bank managers and officers may simply mean an abstract collection of accounting figures (e.g., gap analysis figures), which the bank has to provide to satisfy regulatory requirements. As proven in history, since the provisions in managing risks are disassociated from the daily activities when bankers depend on accounting reports to manage their businesses, banks can easily fail when the hidden risks explode like a time bomb.
Instead of passive accounting reports, Finmanna™ provides a suite of applications that empower bank managers and officers to perform their tasks more effectively following efficient “management workflow” according to the risk management principle. Through the same management platform, the bank executives can easily monitor and manage the overall performance and risks of the bank.
Risks are caused by the uncertainty of the outcome of an event. The key to managing risks is to eliminate or reduce the unknown factors so that the outcome will fall within an expected range. Since bank customers supply deposits (inventory) to the bank and obtain loans (goods) from banks, most of the risks in banking are tied with customers. To manage the risks, bankers must be able to “drill down” from any financial figure to identify the basic causes (which often are the customers), and use dependable and precise guidelines to manage these causes.
For example, when a bank CEO sees a total late payment figure of $1,257,482, he/she will immediately have several questions. For example, who are these customers that are late in payment? What are the social status and relationships of these customers? Is there any correlation among these customers? Is the bank facing a default trend in a particular industry? What is the maximum risk exposure of this industry to the bank? What are the portfolios of these customers in the bank? What are the products involved with these late payments? Who are the bank managers or officers that are responsible for dealing with these customers? Have the bank managers or officers taken any proactive steps to manage the situation so far? What can be done to better manage these customers and others in the future?
Finmanna™ has incorporated several patent-pending technologies to meet this crucial need for managing banks based on the risk management principle. It consists of four innovative building blocks, which can be seamlessly integrated to construct a specific management workflow with diverse banking applications for a particular bank. These four building blocks are explained as follows:
The Business Management System™ (BMS) empowers bank managers and officers of different departments to manage their specific portfolios from multiple dimensions, and to drill down each financial figure to identify its root causes. By analyzing these root causes and taking appropriate actions, a banker can easily improve the overall performance of his/her portfolio.
The Business Collaboration System™ (BCS) provides bank executives, managers, officers, and tellers with unprecedented capabilities to collaborate their efforts in managing their businesses. It automatically synchronizes the activities and effectively facilitates business referrals among different departments such as marketing, sales, operations, commercial loans, SBA, international, etc. in a bank.
The Information Management System™ (IMS) enables bankers who have not received any previous database training to intuitively “mine” the Finmanna™ data warehouse according to a variety of criteria and extract the valuable information they need. As a result, many complicated activities, e.g., campaign, can be easily initiated and efficiently managed through IMS.
With these building blocks, Finmanna™ provides a bank with a unified management platform so that bank employees can easily collaborate in expanding business, reducing risks and improving productivity via the following applications:
- Campaign Management
- Customer Relationship Management
- Contact Management
- Call Center Management
- Sales Force Management
- Credit Risk Management
- Interest Risk Management
- Liquidity Risk Management
- Solvency Risk Management
- Branch Efficiency Management
- ProductPerformance Management
- Employee Productivity Management
Finmanna™ empowers bank managers and officers to aggressively expand their businesses based on the risk management principle. Finmanna™ streamlines the management process through specialized applications and enhances the profitability and productivity of the entire bank. Ultimately,Finmanna™ is a banker’s best ally in competing in today’s complicated and rapidly evolving global economy.