Banks worldwide and especially in India and other developing economies are burdened with Non-Performing Assets (NPA). The provisioning requirements put a huge burden on the banks and financial institutions to closely monitor their assets and take preventive steps to recover, monitor and prevent defaults in this area on a proactive basis. There is also a need for reporting extensively to regulatory authorities and internal management. The operational costs for this activity is huge and erodes the profitability of the banks. Financial institutions have a need and also do proactively govern NPA. However, this activity has number of challenges. Details on credit facilities/collateral granted to a customer often lie scattered across different banking systems. There are also a number of related details like guarantors, insurance details, documentation details, collection patterns, industry patterns are also spread across various systems and internal monitoring purposes. While there are a number of activities related to monitory of recovery of NPA’s , the most critical component is to have an instant view of the entire portfolio for reporting , analysis and decision taking at various levels of the organization. Nelito Systems has automated the entire process of requirement gathering, extract transform loading, reporting and publishing in various points leveraging a central data repository initially built as part of its MIS ADF initiative which works for more than 6 public sector banks in India. A comprehensive NPA warehouse has been pre built for various dimensions and measures. ETL processes have been customized for data cleansing, enrichment and logical aggregates to speed up the decision making process. Prebuilt dashboards give a bird’s eye view of various scenarios. Some functionalities that are supported are indicated below.
- 360 degree NPA Overview
- Classification wise, Product Wise, Country Wise, Region Wise, State Wise, Zone Wise, etc
- Drill downs on dashboards Top N NPA branch/Products and Accounts
- Top N NPA Branches
- Year/Month wise NPA comparison
- Graphical View – NPA Ratios, Branch Performance, Category Wise, Interest Rate Wise, etc.
- Recovery in NPA Accounts/Overdue Accounts- Classification wise, Product Wise, Country Wise, Region Wise, State Wise, Zone Wise, etc – What if analysis
The ETL processes work seamlessly with core banking solutions like Finacle, FinCraftTM, TCS Banks and other loan management software. Technology from SAP has been leveraged to build reports using Crystal Reports( all regulatory reports are available) ETL has two components, homegrown for smaller institutions and SAP extraction tool (DI). Dash Boards are prebuilt using Business objects, the same can be published. Slice and dice and drill down can be achieved by using SAP BO – Web intelligence. Data quality is ensured leveraging technology and wide usage of industry standard MIS information directories. The smart use of technology and a prebuild solution gives quick return of investment to automate the process of monitoring and prevention. Advanced analytics for better collection management like propensity to default, credit scoring etc. will be custom built for institutions during the project engagement. Nelito also offers consulting and expertise to leverage licenses and data that the bank already has in its core systems. Deliverables include process, technology, customization, streamlining ETL, enhancing data marts, building of dashboard, queries and ongoing support on SAP tools like Business Object Dashboard, Webi, Explorer, Crystal Reports, DQ (Data quality), DI (Data Integrator).