Page 8 - coffee table book-Nov 2020 - web_Neat

03 Chennai, 28 July 2020: BCT Digital, a global Fintech functions support validation and
company specializing in BFSI, Predictive Analytics, and Risk
calibration of models to ensure that the
Management, has announced the launch of rt360-ECL process is efficient and robust. It’s
solution from ‘IND AS 109 Product Suite’ for Expected essential value additions include
BCT Digital Credit Loss (ECL) reporting. The rt360-ECL is an integral automation of credit risk monitoring
part of the IND AS 109 Product Suite and has been processes, faster turnaround time to
launches designed exclusively keeping in mind the unique and specific achieve regulatory compliance and
nuances of Indian Financial Institutions and the Indian
internal reporting and proactive credit
rt360 - Regulatory Environment. risk assessment and monitoring. The
core features of the rt360-ECL include
With the introduction of the global International Financial computing 12 months’ and lifetime ECL
Expected Reporting Standards-9 (IFRS 9) and its equivalent Indian for both fund-based and non-fund-
Accounting Standards (IND AS) 109, financial institutions are
based facilities; automated computation
Credit Loss moving towards adopting scientific methods for computing of Probability of Default, (Loss Given
credit losses. The first set of guidelines in this regard were
Default and Exposure at Default);
issued by the RBI in February 2016, which was followed by Effective Interest Rate computation;
(ECL), an a series of amendments, and the latest one was issued in automated validation of parameters as
March 2020. This amendment announced the per RBI/Basel requirements through a
IND AS implementation of the Indian Accounting Standards, pre-built library of model validation
including IND AS 109 for NBFCs and Asset Reconstruction tests; integration with other solutions,
109 Companies. such as core banking/Asset Liability
Management systems& and prebuilt
IND AS 109 requires financial institutions to take the dashboards for management reporting.
product Expected Credit Loss (ECL) approach as opposed to the Click here for more information.
Incurred Loss approach. Under the ECL approach, credit
suite losses must be granularly and systematically estimated and BCT Digital being a FinTech specialist
provided for throughout the life span of a loan. The rt360-
and pioneer in risk management
ECL is a business-driven technology solution that enables solutions aims to empower banks and
Automating the Credit “During these unprecedented times, banks banks to compute Expected Credit Loss as per regulatory financial institutions to recognize
Risk Monitoring Process are facing huge credit losses as their guidelines, while addressing requirements such as Point-In- expected change in credit risk and
Time Probability of Default (PD), Validation and forward-
for effective Credit Loss customers suffer through the COVID-19 provide a framework to manage
Management pandemic. Managing credit risk in a volatile looking estimates. forward-looking credit loss through the
financial market is very critical. If not carefully “During these unprecedented times, banks are facing huge rt360 Risk Management Suite. rt360 risk
monitored, the systemic risks can easily credit losses as their customers suffer through the COVID- products are a 100% “Made in India”,
snowball, and this can impact not only the 19 pandemic. Managing credit risk in a volatile financial by BCT Digital, keeping in mind the
banking network, but also the financial health market is very critical. If not carefully monitored, the complexity of internal and external risk
factors faced by banks.
of the country at a macroeconomic level. systemic risks can easily snowball, and this can impact not
The rt360-ECL is an integral part of BCT only the banking network, but also the financial health of the
Digital’s IND AS 109 product suite and has country at a macroeconomic level. The rt360-ECL is an
been exclusively designed keeping in mind integral part of BCT Digital’s IND AS 109 product suite and
the unique nature of the Indian regulatory has been exclusively designed keeping in mind the unique
nature of the Indian regulatory environment and specific
environment and specific nuances of Indian
nuances of Indian financial institutions.” said Jaya
financial institutions.”
Vaidhyanathan, CEO at BCT Digital.
The rt360-ECL aggregates banks’ historical data and
estimates parameters such as Probability of Default (PD),
Loss Given Default (LGD) and Exposure at Default (EAD)
and Effective Interest Rate (EIR). It’s inbuilt standard

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