Tag Archives: credit risk management courses in pune

Banks Merged With Fintech Startups to Perform Better Digitally

Axis Bank has acquired FreeCharge, a mobile wallet company opening doors to many such deals in the future. As a consequence, do you think banks and fintech startups have started working towards a common goal?

 
Banks Merged With Fintech Startups to Perform Better Digitally
 

On some day in the early 2016, Rajiv Anand, the Executive Director of Retail Banking at Axis Bank, asked his team who were hard at work, “Do present-day customers know how a bank would look in the future?”

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The Basics Of The Banking Business And Lending Risks:

The Basics Of The Banking Business And Lending Risks:
 

Banks, as financial institutions, play an important role in the economic development of a nation. The primary function of banks had been to channelize the funds appropriately and efficiently in the economy. Households deposit cash in the banks, which the latter lends out to those businesses and households who has a requirement for credit. The credit lent out to businesses is known as commercial credit(Asset Backed Loans, Cash flow Loans, Factoring Loans, Franchisee Finance, Equipment Finance) and those lent out to the households is known as retail credit(Credit Cards, Personal Loans, Vehicle Loans, Mortgages etc.). Figure1 below shows the important interlinkages between the banking sector and the different segments of the economy:

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Regulatory Credit Risk Management: Improve Your Business with Efficient CRM

In the aftermath of the Great Recession and the credit crunch that followed, the financial institutions across the globe are facing an increasing amount of regulatory scrutiny, and for good reasons. Regulatory efforts necessitate new, in-depth analysis, reports, templates and assessments from financial institutions in the form of call reports and loan loss summaries, all of which ensures better accountability, thus helping business initiatives.

 
Regulatory Credit Risk Management: Improve Your Business with Efficient CRM
 

Help yourself with credit risk analysis course online at DexLab Analytics.

 

Also, regulators have started asking for more transparency. Their main objective is to know that a bank possesses thorough knowledge about its customers and their related credit risk. Moreover, new Basel III regulations entail an even bigger regulatory burden for the banks.

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SAS and Equifax Clouts Deep Learning and AI to Improve Credit Risk Analysis

SAS and Equifax Clouts Deep Learning and AI to Improve Credit Risk Analysis

The noteworthy triumphs over us, humans, in Poker, GO, speech recognition, language translation, image identification and virtual assistance have enhanced the market of AI, machine learning and neural networks, triggering exponential razzmatazz of  Apple (#1 as of February 17), Google (#2), Microsoft (#3), Amazon (#5), and Facebook (#6). While these digital natives command the daily headlines, a tug of war has been boiling of late between two ace developers –  Equifax and SAS – the former is busy in developing deep learning tools to refine credit scoring, and the latter is adding new deep learning functionality to its bouquet of data mining tools and providing a deep learning API.

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Darker Clouds Covering the Cloud

Darker Clouds Covering the Cloud
 

New age technologies are dominating the present business environment. Mobility, cloud computing, social media and analytics have been affecting the different realms of business at an ever-increasing rate. Though most of the impacts are favourable, yet it will be reckless to ignore the severity of the negative ones.

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ANZ uses R programming for Credit Risk Analysis

At the previous month’s “R user group meeting in Melbourne”, they had a theme going; which was “Experiences with using SAS and R in insurance and banking”. In that convention, Hong Ooi from ANZ (Australia and New Zealand Banking Group) spoke on the “experiences in credit risk analysis with R”. He gave a presentation, which has a great story told through slides about implementing R programming for fiscal analyses at a few major banks.

 
ANZ uses R programming for Credit Risk Analysis
 

In the slides he made, one can see the following:

 

How R is used to fit models for mortgage loss at ANZ

A customized model is made to assess the probability of default for individual’s loans with a heavy tailed T distribution for volatility.

One slide goes on to display how the standard lm function for regression is adapted for a non-Gaussian error distribution — one of the many benefits of having the source code available in R.

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The Opportunities and Challenges in Credit Scoring with Big Data

Within the past few decades, the banking institutions have collected plenty of data in order to describe the default behaviour of their clientele. Good examples of them are historical data about a person’s date of birth, their income, gender, status of employment etc. the whole of this data has all been nicely stored into several huge databases or data warehouses (for e.g. relational).

 
The Opportunities and Challenges in Credit Scoring with Big Data
 

And on top of all this, the banks have accumulated several business experiences about their crediting products. For instance, a lot of credit experts have done a pretty swell job at discriminating between low risk and high risk mortgages with the use of their business mortgages, thereby making use of their business expertise only. It is now the goal of all credit scoring to conduct a detailed analysis of both the sources of data into a more detailed perspective with then come up with a statistically based decision model, which allows to score future credit applications and then ultimately make a decision about which ones to accept and which to reject.

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The Olympics Turn To Data Analysis: Canadian Olympic Committee Deals In With Analytics

The Canadian Olympic company has recently teamed up with a major Big Data Company to ramp up the analytics for the benefit of the athletes.

 
The Olympics Turn To Data Analysis: Canadian Olympic Committee Deals In With Analytics
 

Recently the COC made an announcement about an eight-year, cash and services sponsorship deal with SAS, which is an analytics software with a brag-worthy client list from varied industries, like universities, hotels, banks casinos and much more.

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Understanding Credit Risk Management With Modelling and Validation

The term credit risk encompasses all types of default risks that are associated with different financial instruments such as – (like for example, a debtor has not met his or her legal duties according to the debt contract), migrating risk (arises from adverse movements internally or externally with the ratings) and country risks (the debtor cannot pay as per the duties because of measure or events taken by political or monetary agencies of the country itself).

 

Understanding credit risk management with modelling and validation

                        Understanding Credit Risk Management With Modelling and Validation

 

In compliance to Basel Regulations, most banks choose to develop their own credit risk measuring parameters: Probability Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD). Several MNCs have gathered solid experience by developing models for the Internal Ratings Based Approach (IRBA) for different clients.

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