Bank DOM.RF, with the participation of the Russian company GreenData, has developed an early warning system for credit risk on corporate loans. It will consolidate disparate data sources and automate monitoring algorithms to quickly respond to external changes against the backdrop of an actively growing loan portfolio.
The toolkit was implemented on the basis already used for the Bank DOM.RF credit pipeline low-code of the GreenData platform. The new module allows, on the basis of monitoring and comprehensive analysis of the information accumulated in the "lake" of bank data, to predict the probability of non-fulfillment by the borrower of its obligations. The main criteria for choosing a software product were the speed and cost of implementation, the ability to quickly test hypotheses, quickly change business logic and monitoring approaches.
"We use big data technologies to collect information about the implementation of funded projects from government agencies and from open sources: mass media, social networks and telegram channels. The service from GreenData allowed us to build the process of monitoring credit risk at all stages: identification, assessment, decision-making and settlement. It has also become possible to quickly transfer information between different divisions of the bank and the client within the same system. The developed solution makes it possible to significantly reduce the likelihood of the occurrence of unaccounted negative events," commented the Director of the Data Management division of Bank DOM.RF Alexander Kosenko.
During the implementation of the project, it was possible to make changes to its own methodology for identifying credit risks. The list of risks has been restructured: some have been deemed insignificant or changed, new approaches to assessment have appeared. "This undoubtedly had a positive impact on the convenience and speed of borrowers' interaction with the bank. The implementation of the monitoring system allowed 2-3 times to speed up the execution of most operations and the response to negative signals for each construction project, both external and internal. Now we can increase the loan portfolio faster and without unnecessary risks," said the Director of the Credit Risk Monitoring division of Bank DOM.RF Denis Kurakin.
As noted by the head of automation of construction activities of the Information Technology division DOM.RF Roman Glova, within the framework of the project, among other things, control over the fulfillment of the terms of the loan agreement was improved, automatic monitoring of financial covenants was established on the basis of reports provided by the client, calculation and tracking of changes in the client's "pre-problem zone" were optimized, the process of resolving violations was automated, interactive analytical reporting was introduced.
"We have big plans for the development of this system. For example, the team is currently working on the implementation of a document analysis module that will allow borrowers to provide a convenient service for transferring documents confirming the fulfillment of obligations to the bank through their personal account. The system will remind you in advance and form a list of them in accordance with the individual schedule of the loan agreement. The bank's employees will also receive an automatically generated monitoring dossier and notifications of identified risks," said Ekaterina Medvedeva, project manager for GreenData.
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