Wholesale banking: Challenges in automating commercial credit risk management

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Financial institutions seeking to invest in enhanced risk management of commercial credit face significant challenges. While outwardly straightforward, commercial credit is one of the most complex areas of banking. As a result, it is not unusual for financial institutions to underestimate the scope or challenges involved in the automation of originating, monitoring and managing commercial credit. 

Discussing these enhancements is more important than ever. Default rates on commercial credit facilities are at their highest rate in almost two decades, and automation is an effective tool to help banks improve transparency, enhance management control and increase operational effectiveness. 

The purpose of this paper is to break down the complexities of the commercial credit process and provide a clear picture of the challenges and potential benefits of automation.

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