Collateral Management
ApPello Collateral Management System is used by numerous banks covering all of their segments (e.g. retail, SME, corporate). Our clients have experienced significant reduction in capital requirements (min 1 %) and provisions and reduction of collateral processing and IT maintenance cost after roll-out. The solution supports all collateral related activities beyond the fully configurable collateral maintenance and processing coverage.
It includes e.g. incorporated loan origination support, complex eligibility calculations, setup for segmented collateral activation criteria, indexation and depreciation calculation processes, monitoring, termination, workout, insurance related and valuation workflows. Sophisticated allocation algorithms optimize exposure-collateral coverage, even in multiple parallel methods (e.g. provision minimisation, internal economic, Basel STD or IRB calculations).
The Collateral Management System has an optional, already pre-integrated Valuator module which contains real estate and movables evaluation engine accessible for internal co-workers and contracted external valuator companies (it is available as desktop solution as well as on mobile devices). With ApPello’s solution, you can keep up with time-critical collateral management challenges in today’s financial world.
Capabilities
  • End-to-end collateral life cycle process support
  • Easy to extend collateral catalogue
  • Highly optimized allocation algorithms
  • Provides input data for provision and RWA calculation
  • Visualized collateral structures
  • Eligibility and enforcability engine
  • Public Apis for decreasing integration efforts
Benefits
  • Reduction in capital (RWA optimization)
  • Improve collateral coverage
  • Optimizes provisioning
  • Data consolidation and improvement of data quality
  • Support loan origination process and Ex post calculations
  • Cater for collateral Eligibility
  • Higher work efficiency
  • Easy understanding of complex business cases
  • Ensured compliance with Basel, Anacredit regulations

1 DISCOVER ADDITIONAL SALES POTENTIAL

The system visualizes facility-loan-collateral contract-collateral asset (object) structures and allocation results. This graphic appearance also helps executing new actions (e.g. sandbox calculations for adding new collateral to the financing structure) and performing maintenance tasks (e.g. replacement of existing collateral to a new one). Based on our customers’ feedback it also helps identifying complex business cases and opportunities. A few examples: handling cross-collaterals between different partners and facilities, portfolio guarantees, collateral replacements, etc. Acquire a significant competitive advantage by recognise your customers’ needs first-hand

2 EASY-TO-EXTEND COLLATERAL CATALOGUE

ApPello currently supports 10 main types of collaterals such as Real estates, movables, guarantees, etc. Under each collateral class there are possible categories and sub- categories. This sub-categorization provides the possibility to specifically name what collateral we are talking about, e.g. Real estate / Residential / Family house, and also to differentiate the main parameters for every sub-category. ApPello can easily adapt to the Bank’s collateral catalogue with the so-called Collateral steering table which collects the collateral types. Later on, it is extendable and editable by the Bank. The business administrator is able to define the properties and parameters valid for a collateral type in the collateral steering table. Such properties are, for example maximum and minimum haircut, default eligibility, allowed evaluation types, evaluation and monitoring frequency.

3 Intelligent Allocation

 

 

The key to truly efficient collateral management lies in how to determine the optimal way to allocate your collaterals to exposures.  The allocation optimization (with multiple built-in methodologies) is possible for provision and/or capital as well. The allocation runs with refreshed exposure risk values and revaluated collateral asset values at the end of every day for the whole portfolio. The algorithm can be started for a particular customer group on-the-fly during the daily operation. The users receive an immediate feedback about the required coverage and available collateral values in each allocation method on the visual GUI.

4 workflow based collateral management

ApPello Collateral Management solution guides the user through the whole lifecycle of the collateral from the initial origination through (whichever is applicable) the valuation, activation, monitoring, maintenance, indexation / depreciation calculation, revaluation, termination and workout processes.  It also covers the handling of related insurances. Solution opens customized screens based on user profile, controls data quality and consistency, sends e-mail notifications or pop-up warnings. This gives you a comprehensive overview and saves you valuable time.

5 Comply with BASEL and Anacredit requirements

The fast-changing regulatory environment makes it harder each year but also even more important to comply with existing standards of Basel regulations and the recently introduced ones such as AnaCredit. Apart from the full compliance, the solution provides a comprehensive flexibility toolset that can help our clients maintaining full control over the application settings and reducing IT maintenance cost. E.g. dedicated business users may easily configure the eligibility and enforceability rules, set up and maintain the collateral catalogue and all the business parameters.

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