Finance industry has gone through one of the biggest crises in the US history. Two key indicators of banks' health are net charge-offs - the value of loans written off as not collectible, and nonperforming loans that are in default or delinquent for more than 90 days. Federal government has instituted new regulations to avert such situations in future. New regulations require new tools to ensure compliance and help managers to proactively mitigate crisis situations.
Financial institutions face following problems:
- Identification of potential Non Performing Assets (NPA)
- Treasury and funds management
- Detection of money laundering patterns
- Determining the value of derivative like instruments
- Default risk assessment
- Increasing debt collection effectiveness using decision trees
- Decision support system for treasury optimization
- Risk assessment in insurance
Business analytics can provide the insights that institutions need to reduce both loan write-offs and the cost of collections activities. It can identify likely candidates for workouts and loan modifications. Octillion provides applications to solve these problems for banking and other financial institutions.
