All applications at a glance

FlexFinance provides a modern front-office system with omni-channel processes throughout all sales channels. In this way, a customer can check the lending conditions and finalise an agreement via any sales channel; either online, self-service, app, mobile device or in the conventional manner, at a branch office.

Since a bank has access to a customer’s status at any time, it can specifically support and target customers. If a customer wishes to switch to another sales channel, e.g. from online to a personal service at the branch office, all the data are available in the system, thus allowing banking staff to focus directly on advisory services.

Experience has shown that specific omni-channel processing of “grey-area” applications, which would be rejected in a regular online application process, can result in a successful conclusion.

FlexFinance covers the whole process ranging from the loan application, risk calculation and multi-level approval process.

Thanks to a workflow, the process is interactive and is transferred directly in the system. Staff at branch offices can inform a customer of the decision on a loan is just a few minutes. Suggestions for upselling and for a customer's maximum credit level can be provided to staff by the system.

The average time for processing an entire loan, including the application, the approval process and the signature, is less than 25 minutes, while unit costs per application are low and process quality is high.

Existing lending contracts are processed quickly, efficiently and, to a great extent, automatically for management purposes.

All process steps for monitoring and adjusting lending contracts are provided, including the consideration of extraordinary events and problems. Future payment and repayment processes can be processed flexibly and adapted to current situations.

Extraordinary events:

• cancellation
• collateral
• special repayments, partial repayment, own or third-party complete repayment
• processing of claims
• estates, guardianship
• rollover
• specific impairment

Problem cases:

• termination
• comparison/write-off of claims
• liquidation of collateral
• resales
• write-off

The multi-GAAP-capable financial accounting includes all functions required for the creation of financial reports and notes. This includes calculations relevant for the initial and subsequent measurement as well as financial bookkeeping of accounting transactions which cover the entire life-cycle of financials and non-financials. The embedded Accounting Rules Engine generates journal entries for all accounting transactions. Financial Statements such as balance sheet and notes are supported. Alternatively or in addition debit/credit entries can be provided for a separate general ledger in SAP, Oracle or any Core Banking System.

The ECL Workbench is a modular solution that calculates probability-weighted Expected Credit Losses (pwECL) in line with IFRS 9 requirements. This includes the calculation of 12-month pwECL with PD, LGD und EAD as well as lifetime pwECL for assets assigned to stage 1 or 2.

The aim of hedge accounting is to eliminate the net influence on the profit and loss account. Comprehensive regulations on hedge accounting are required due to the valuation concept in IAS 39 and IFRS 9, which values some financial instruments at fair value and some at amortised cost, and also due to the different effects on profit and loss.

Podcaster: Robert Hall

FlexFinance Package for IFRS, ALM and Liquidity

With the introduction of IFRS 9 banks are required to consider possible expected credit losses during the entire life cycle of a loan.

But beside this fact expected credit losses are moving into ALM and Liquidity too as they impact expected future cash flows which form the basis for ALM and Liquidity analysis.

Therefore it becomes even more necessary than ever before to run IFRS, ALM, Liquidity on the same data for consistent and reliable results.

The credit spread is required for the credit application process. The credit spread should take into account the expected credit loss for an individual deal. As an alternative to conventional methods of scoring, rating and PD determination, Machine Learning can also be used, for this purpose, on the basis of a performance database filled with Deep Learning.

FlexFinance provides an API that can be integrated into the credit application process. We have other solutions for credit monitoring, accounting and backtesting.

The application monitors the loans for which contracts already exist. Not only are customers and contract data taken into account, but macro- and microeconomic factors that naturally influence credit management are also considered. Based on deep learning processes and machine learning, the EWS application identifies criteria that point to an adverse business situation.

The EWS application initiates a workflow when certain events occur. The events could also be the variance of the ECL, for example. The workflow actions could also be linked to contract deadlines in such a way that realistic options for action exist.