Portfolio Analytics

Couple Laptop Blue- Newsroom Stock Image

Thought Leadership

5 Ways Financial Institutions Can Transform Credit Portfolio Management

In the rapidly evolving lending landscape, caused in part by the bank failures of 2023, credit portfolios are facing significant stress and heightened challenges, including rising default rates, fluctuating interest rates, and economic uncertainty. Coupled with strict regulatory demands for risk differentiation and portfolio diversification, these pressures are exposing the limitations of current credit portfolio monitoring processes, which are often static, reactive and subjective. As a result, financial institution (FI) leaders are rethinking their credit portfolio management practices.

Thought Leadership

Credit Portfolio Management: 5 Ways Financial Institutions Are Achieving Tangible Results

In the rapidly evolving lending landscape, caused in part by the bank failures of 2023, credit portfolios are facing significant stress and heightened challenges, including rising default rates, fluctuating interest rates, and economic uncertainty. Coupled with strict regulatory demands for risk differentiation and portfolio diversification, these pressures are exposing the limitations of current credit portfolio monitoring processes, which are often static, reactive and subjective. The Australian CRE market has seen an 8.5% decline in capital growth with the office sector being a major contributor to this decline due to its cumulative loss of 22%. As a result, financial institution (FI) leaders are rethinking their credit portfolio management practices.

Thought Leadership

Banking, Marketing and Big Data

Data and analytics have been buzzwords for years in the financial services industry, but only recently have banks started using data analytics to meaningfully drive revenue and improve the customer experience. Today, banks on the leading edge are using advanced analytics to inform and prioritize among marketing campaigns, and then automate those campaigns so that dozens, if not hundreds, can be run simultaneously by financial institutions of any size.Growing revenue in a responsible way has always been a challenge for banks, but it’s not the growing part that’s hard. A bank can grow revenue by simply easing underwriting standards and boosting loan volumes. But this increases credit risk, leading to higher charge-offs in the future. Thus, this is not an ideal growth strategy for long-term success. The challenge is to grow revenue responsibly, ideally in a way that doesn’t require regular infusions of capital.

Thought Leadership

You Can Have It All Balancing Fast Banking with Better Compliance

As consumers increasingly desire faster banking, more convenient access to their accounts and quicker decisions on their loan requests, financial institutions are hamstrung by a rising wave of financial regulations. Between new and existing regulatory requirements including Current Expected Credit Losses (CECL), customer disclosures and fair lending laws, to the mounting risks of default, fraud and cybersecurity, to the new challenges presented by the global health crisis brought on by COVID-19, financial institutions are stuck between two seemingly mutually exclusive and competing priorities: fast banking and better compliance. At nCino, however, we believe it’s possible for financial institutions to have it all. The key to striking this balance is that banks must be willing to approach their business differently.