CLIENT

A privately held community bank, $1.5 billion, with a strong presence in mid-sized communities, looking to expand into new geographic areas and enhance their Financial and Risk Management processes with leading technology and reporting systems.

 

SITUATION

The bank needed to implement a new Financial and Risk technology infrastructure that could support the strategic direction and provide timely and accurate visibility to risk, operations and financial performance.  There was no adequate connectivity in place that could bridge their core system, 3rd party data and manual spreadsheets in order to provide both financial and risk to strategic performance reporting and analytics.

 

CLIENT DELIVERY

Three implementations were chosen from our Finance. Risk. Unified. (FRU) framework: financial management, enterprise risk management and enhanced credit risk management.

Sola Analytics began with the implementation of a comprehensive budgeting and financial reporting system that incorporates branch, board, and external reporting, complete with allocations and consolidating entries.  This also included loan and deposit reporting, as well as forecasting and strategic planning.

OnPoint then implemented a robust Enterprise Risk Management (ERM) Foundation Program that is strategically aligned to support achievement of the bank’s objectives. The program included defining the Risk Appetite, Top Risks and Key Risk Indicators with metrics covering all areas within the bank.  These programs are deployed within the same technology as the Financial management system.

The bank then implemented an enhance credit risk management scorecard program which delivers credit risk assessments that rate both the borrower and collateral, and quantifies expected loss, allowing the bank to adjust pricing proactively, while gaining visibility to credit exposures well in advance of an actual loss event.  This program was then leveraged to create alignment and visibility for loan portfolio management, the provision for loan losses, and loan production strategies.

 

 RESULT

With the implementation of the FRU platform, the bank now has current and accurate data to measure their performance against their five-year plan, with a continuous view of financial outcomes alongside their risk profile. And with increased visibility to the real-time impact of their risk-adjusted decisions, the management team now has the freedom to be much more proactive and strategic toward their growth initiatives.