To resolve the inability to distinguish between default borrowers and potential willful defaulters, Standard Chartered Bank created a solution using algorithms to scan structured and unstructured data from internal and external sources. The analysis of external data helps identify potential risks on entities of interest on a daily basis. The solution included a combination of data integration, natural language processing and a rules engine to assess the risk and provide visualization for the end user.
The new solution has helped the bank to acquire crucial information and to have an oversight on both capital and operational expenditures of borrowers. It also offers early identification of potential stress, 360-degree access to internal and external data, identification of risk, efficient credit monitoring and enables compliance with regulatory guidelines. For Phase I, a prototype for Indian commercial banking was built. Phase II is to develop and integrate the system with the bank’s infrastructure and core processing systems so that the solution can be used in other countries.