Streamlining risk management

Kreditprombank needed to invest in new IT systems in order to compete against other top Ukrainian banks. As retail business grew, so did the volume of customer data. But the bank lacked the ability to collect and analyze it efficiently. Outdated manual processes could no longer support risk management and lending decisions.

"It became hard to run the business, distributed nationwide, because of the rapid growth and accumulation of data on our retail operations," explains Igor Voloshyn, Head of Financial Risk Management. "We needed special tools for effective, automated data collection and analytical reporting, in particular on liquidity gaps."

A big advantage of SAS for us was that it presented a reliable framework with a wide range of tools for the creation of additional settings and that we could promptly introduce any changes by ourselves.
Igor Voloshyn

Igor Voloshyn
Head of Financial Risk Management

So the bank turned to SAS for analytics and platform solutions to manage risk and improve internal processes.

With SAS® Intelligence Storage and SAS® Customer Segmentation for Banking, Kreditprombank  has created a centralized system for liquidity and risk-liquidity management, streamlined internal risk management processes, improved the quality of its loan portfolio and reduced the time spent preparing risk reports while improving their quality.

"A big advantage of SAS for us was that it presented a reliable framework with a wide range of tools for the creation of additional settings and that we could promptly introduce any changes by ourselves," Voloshyn says.

Since implementing SAS, the bank has retained an acceptable level of liquidity while growing its loan portfolio, which grew by a factor of 6.6 in three years. Meanwhile, time spent on decision support for liquidity management has decreased by two to three times, Voloshyn says.

With SAS, the bank has seen a dramatic reduction in manual data entry. As a result, the potential for error has decreased. Thanks to SAS Business Intelligence, development of new financial models and risk assessment models became faster and better in quality. Therefore, the bank's risk reports are ready in less time and the quality is better.

By making risk processes and management transparent at the organizational level, Kreditprombank meets ISO 9001:2000 regulatory requirements and became one of the first Ukrainian banks to receive the international certificate of quality.

Challenge

Kreditprombank could not keep pace with the rapid growth and accumulation of data on retail operations due to manual internal processes and the absence of automated data collection, processing and analytical reporting.

Solution

SAS® Customer Segmentation for Banking

Benefits

Automated processes are more efficient and accurate, resulting in decisions that are faster and smarter; risk reports are ready in less time and the quality is better; loan portfolio increased by a factor of 6.6 in three years.

The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.

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