Financial institutions continue to be exposed to risks in form of bad debts, poor investments, poorly assessed clientele, and marketing the wrong product in their portfolio.
These institutions have a rich endowment of their customer data but underutilise it. They only concentrate on the financial metrics and a few other financial indicators rather than the qualitative behaviour this data unearths that is crucial in predicting likelihood of default.
The location, marital status and employment status are some of those essential metrics that can be utilised in stress testing chances of default. These qualitative metrics tell a lot about a person’s lifestyle and what potential barriers they have to clearing their arrears.
With the massive amounts of data banks collect when you’re registering for a bank account, this shouldn’t be a problem. Yet the percentage of Non-Performing Loans (NPLs) keeps accruing year on year.
Sometimes, it’s not the clientele that is poor at clearing credit but the mechanisms of giving credit at the bank. It’s high time the bankers are blamed for poor loan consultation. The officers should be ahead of the client when assessing their loanable capacity.
There is software that assists these loans officers in assessing credit risk. Microsoft Excel is one of a handful of programs that can help you assess a client’s loanable capacity with inbuilt features that give you these insights in just a click.
With the right skills, you can stress test interest rates that can be used to assess the pay-ability of a client, build dynamic loan amortization schedules to help you track your client’s arrears, offset the risk of inflation on a an investment or a loan disbursed, this and more.
Our #BeyondExcel productivity package will give you and your team a comprehensive understanding of the powerful features in the program that will put you one-step ahead of your clientele. You will be able to loan to them amounts that they are able to cover irrespective of the unanticipated conditions that they might face. Let’s close that gap on NPLs.
Sign up for our #BeyondExcel Productivity Package product, save your bank’s top-line and impress stakeholders.