We’ve had an excited year in credit, with a brand new partnership with UK-based Welcom Digital, to resell their award-winning account management system, Financier, in South Africa. You can read more about our partnership here.
This partnership enables us to deliver end-to-end credit management solutions for our clients, and along with our innovative home-grown software and solutions, have inspired some great blogs on credit risk management in 2019.
Here are our most popular blogs on credit from 2019:
IFRS 9 expected credit loss ECL models for retail lending
t is expected that IFRS9 adoption should lead to an increase in provisions (initially a balance sheet / retained earnings adjustment only with commentary on retrospective impacts). Typically, the increase is mostly a result of loss provisions for all accounts (regardless of a loss event) and the extension of the loss period from a typical 12 months to lifetime (e.g. for structured loans the remaining term of the loan plus time to default/write-off plus the recoveries window).
The below schematic provides an overview of the probable movements in provisions moving from IAS39 standard practices to an IFRS9 compliant solution… Read more
Frequently asked questions on decision engines and DecisionSmart
We’ve written previously on how Business Rules Management Systems (BRMS) like DecisionSmart are used across the customer lifecycle. In this blog we cover some of the frequently asked questions we get asked about decisioning and DecisionSmart.
What is DecisionSmart?
DecisionSmart is a decision engine that allows business users to capture and apply business rules, matrices, scorecards, decision trees, terms of business tables and decision flows across the entire customer lifecycle. It has multiple uses and is a key component enabling businesses to automate decisioning… Read more
How to adopt credit scoring
Bringing automation into the credit assessment process through credit scoring brings about significant benefits. Some of these benefits include:
- Consistent objective decisions,
- Quicker decisions,
- A lesser requirement of manual intervention
- More profitable decisions (normally 20-30% better than purely subjective decisioning)
The scorecard is the mathematical tool used to bring about these benefits. In terms of introducing advanced decisioning in the originations space, in particular, the following diagram shows (from left to right) the natural advancement of credit assessment through the use of different credit tools… Read more
Why companies cling to legacy systems
Innovative companies know they must embrace digital transformation in their business to stay competitive in the world of the fourth industrial revolution. But legacy systems often get in the way of transformation. In this blog, we look at why companies are reluctant to move away from their legacy systems and how to know when it really is time to modernise… Read more
Welcom Digital and Principa announce partnership to create end-to-end credit management solutions
Cape Town, South Africa – Welcom Digital, a UK company specialising in Loans management software, and Principa, a South African data analytics company, are delighted to announce a new strategic reseller partnership that includes the resale of Welcom Digital’s Award winning Loan Management product Financier™ to the South African market and reciprocally, Welcom Digital will market Principa’s specialised credit risk software solutions to the UK market… Read more