Risk and rewards
National Bank of Greece optimizes credit risk management with SAS®
The National Bank of Greece (NBG) is optimizing its operations and technology architecture to fortify its market leadership position, while providing better customer service and increasing profitability. As part of this initiative, the bank is using SAS Business Analytics to improve its risk management processes, minimize its credit risk exposure and improve its capital adequacy calculations.
The National Bank of Greece — the largest financial group in the Balkans and Southeastern Europe — provides a full range of financial products and services, including investment banking, brokerage, insurance, asset management and leasing.
According to Dr. Alexandros Benos, Director of NBG's Risk Control and Architecture Division (GRCA), both credit risk measurement and capital analysis are core concerns for the group, which must comply with local and international capital adequacy rules, as well as continuously monitor the credit risk it undertakes across products, clients and countries.
Reports in minutes, not days
“Before, standard risk MIS report generation required 20 working days,” explains Benos. “We were able to move employees from arduous and repetitive tasks needed for reporting to other value-adding analysis projects, such as Basel II modeling and customer scoring. Comprehensive data analysis requires only half the time it used to, while report generation takes minutes instead of days.”
Benos says the bank needed a solution that did not require specialized programming skills and that could access a variety of data sources and formats, as well as handle large-scale data volumes to perform analytics.
The benchmark for data analysis
Before implementing SAS, the bank found it almost impossible to track delinquency patterns among its vintage consumer loans and credit cards.
"How did third quarter 2007 production of auto loans compare to third quarter 2008 in terms of more than 60 days past due in the first two years of their life? Such questions arise every day in our work, and answering them both quickly and correctly proves invaluable in making efficient policy decisions," Benos explains.
The solution also helps the GRCA perform vintage analysis on consumer loans, mortgages and credit cards and track account delinquencies across time and subsidiaries.
Benos foresees using SAS for similar applications in other divisions, such as small business loans. "This will contribute to improving customer service and portfolio management," he says, "as well as optimizing the bank's product marketing and offers to clients."
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Dr. Alexandros Benos
Director of NBG's Risk Control and Architecture Division
National Bank of Greece
Analyze large volumes of diverse data for credit risk management, generate and deliver reports more quickly, optimize precious capital to support both regulatory compliance and financial growth.
Reduced report generation from 20 days to a few seconds, reduced employee time spent on reports, minimized credit risk exposure, freed up cash for market re-investment.
“"Now we require fewer employees for reporting and have more time for value-added analysis. Comprehensive data analysis requires only half the time it used to take, while report generation takes just three seconds instead of days or months."”
Dr. Alexandros Benos
Director of Group Risk Control and Architecture Division