Collateral
Management

Collateral
Management

ApPello Collateral Management System is used by numerous banks across Retail, SME and Corporate segments.

Through adopting this flexible and functionally rich platform, our clients have experienced often significant reductions in capital requirements (RWA) and loan risk provisions, streamlined collateral processing, and reduced total cost of ownership.

Discover
Product Details

The solution is fully configurable by the users and supports all loan collateral-related activities across collateral maintenance and processing. It means that the following activities are all included :

incorporated loan origination support, complex eligibility calculations, setup for segmented collateral activation criteria, heuristic allocation algorithm, and maker-checker process support.

Capabilities &
Benefits

End-to-End collateral life cycle process support

Visualised collateral structures

Easy to extend collateral catalogue

Highly Optimised Allocation Algorithms

Provides relevant input data for Provision and RWA Calculation

Public API's for reduced integration effort

Compliance with Basel, Anacredit Regulations

Reduction in Capital (RWA Optimization)

Increased operational efficiency

Optimised loan risk provisioning

Data Consolidation and Improvement of Data Quality

Easy understanding of complex business cases

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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 customised screens based on user profile, controls data quality and consistency, sends notifications or pop-up warnings. This gives you a comprehensive overview and saves your valuable time.

Workflow based
Collateral Management

Proposal

Initial
Origination

Valuation

  • Rating, LGD, Limit, Pricing calculation
  • Profitability
  • Investigation: negative Credit Bureau
Activation

Activation

Collateral activation

  • Modelling new applications
  • User management
  • Integration with external LOS
Maintenance

Maintenance

Monitoring & Maintenance

  • Daily recalculation & monitoring of legal strurtures
  • Automated asset revaluation
  • Notifications for business users
Termination

Termination

Collateral termination

  • Ending of the collateral contract
  • Financial analysis
  • Reporting
Rating

Workout &
Collection support

Workout & Collection support

  • Cost & revenue registration
  • Financial analysis
  • Reporting

Easy-to-extend
collateral catalogue

ApPello’s Collateral Managmeent 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.

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 reevaluated 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.

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.

Comply with
Basel & Anacredit

The ever-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 maintain 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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Products

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