Early Warning & Monitoring

ApPello Early Warning & Monitoring is a perfect tool for early recognition of loan repayment problems allowing enough time solve any upcoming difficulties.

Above the daily client and loan monitoring the solution helps to handle the arising issues immediately. The inbuilt monitoring supports the regular review of the full loan portfolio.

Monitoring sheets provide a full overview of the client and guide the rating of the individual exposures through the required approval processes.

  • Loan monitoring with built-in early warning feature
  • Continuous automatic detection of early warning signals
  • Automated alert mechanism using parameterized indicators
  • Manual warning signals
  • Handling client and client groups
  • Classification – handling method selection
  • Approvals and escalations
  • Action plans and handling of risk mitigation tasks
  • Notifications – e-mail, SMS, Social media
  • Early identification of future non-performance
  • Efficient Customer follow-up
  • Prevention of the Loan loss
  • Improving quality of the loan and client portfolio
  • Lower level of the Provision amount
  • Risk mitigation
  • Expert estimation of the risk categories (Loans, Customers)
  • Fulfilling regulatory requirements
  • 360◦ view of the clients activities
  • Maintenance and modifications without coding

1 Statistical based flexible Early Warning calculation engine

The system works with an individually defined, extendable set of automatically or manually generated early warning signals. The monitored information, the sensibility of automatic signal generation as well as the “strength” of the signal are determined by business rules and are freely parameterizable by the Bank’s professionals. Signals can be, for example, decreased account turnovers, late payments, changes of client rating or information from an external credit blacklist.

2 work flow based escalation process

The classification process is started automatically by business rules that analyze the warning signals and propose an initial rating of the client. Business and risk management experts rate the client as well and decide about the action to be taken through an approval process. A 360° client overview, including client group information, supports decision making.

3 Action plans and handling of risk mitigation tasks

Above the recognition of problems the system supports to manage them with the creation of overridable action plans – based on the indicator signals – and generation of new tasks to each action (rerating). The system inspects the allocation, execution and rescans of tasks.

4 Integrated loan monitoring module

The Monitoring module supports the regulatory requirement of periodic client review. The system automatically prepares monitoring sheets about the client (client base data and exposures) and assigns them to responsible users for evaluation. In the monitoring sheet the exposures of the client are rated individually, and the approval process is guided by a workflow.

Decision Engine
Efficient risk assessment based on different types of flexibly adjustable, versioned scorecards. All the required data are available for the scoring engine, which determines the risk of financing to support the decision-making process
The non-performing loans are handled by the Collection module through workout strategies
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