Early Detection of Credit Risks

Example: Better monitor the business and the underlying credit risks. Photo: iStock. Illustrations are from the EyesClear platform.

Bill is the SVP of the small and medium sized enterprise (SME) business of the Liberty Bank. SME exposure represents a sizable share of the bank’s loan portfolio, and by nature, contains higher risk. Bill would like a system that can monitor cash flow abnormalities to better control the business and risks.

Besides the traditional business review and credit analysis of SME customers, Bill wants to monitor customers’ cash flow activities on a daily basis—without increasing the headcount—and to eliminate the risk of human errors.

By using EyesClear, Bill and his team can monitor each customer account’s activities online on a real-time basis. EyesClear detects abnormalities by comparing movements to historical data, such as increase or decrease in account activity, and sends a warning message to the relationship manager and credit department. This early detection capability helps the bank to better monitor the business and the underlying credit risks, and Bill’s initiation was well noted.