CLIENT

A privately held regional community bank which doubled its size after a merger growing to $7 billion had expanded its footprint from a smaller rural concentration, to more high-growth midsized community market areas.

 

SITUATION

An OnPoint existing client requested additional support given their increased size and expansion of their business strategies, more complexity and regulatory expectations for management of risk.   Specifically, the bank was seeking greater visibility from both a financial and a risk perspective with particular focus on enhancing the financial, enterprise, compliance, internal audit and credit risk management programs.

The acquisition raised the bar for financial, risk, regulatory reporting and monitoring expectations.  Management’s strategy required the support of more advanced systems and programs that would provide integrated views of financial and risk data.  Given the complexity and breadth of the combined entities, the bank financial and risk strategies required an integrated and strategic enhancement.  Visibility of key financial, risk, budgeting and performance metrics, as well as loan and deposit performance metrics were needed.  Further, a consolidated view of the financial and risk data was critical to ensure the bank would make the most effective strategic and forward-looking operational decisions possible.

 

CLIENT DELIVERY

The bank selected a unified platform for all financial and key risk information streams – financial, credit, operational and capital.

Sola Analytics implementation  of comprehensive budgeting and financial reporting enabled through an integrated technology platform, and OnPoint’s implementation of enhanced ERM, Internal Audit, Compliance and Credit risk management programs provide the client with highly automated  platform leveraging the bank’s  risk and financial data into a unified view to ensure strategic visibility and success.

Features included:

  • A consolidated risk tool set that includes credit risk stress testing and an enterprise wide stress testing based on prospective economic scenarios
  • The ability to simulate prospective economic scenarios and see the potential impact on capital and financial performance while gaining visibility to the organization’s risk profile
  • Visibility to the potential impact on charge-offs and the provision for loan losses while identifying higher risk profile segments of the loan portfolio

 

RESULT

With the implementation of a unified platform that overlays financial data with risk visibility, the bank now has the right information in real-time to make risk-based decisions to their credit portfolio, financial forecasts, and overall strategic objectives.  The management team at all levels can also see the real-time impact of their decisions from a financial and risk perspective to take full advantage of opportunities across their newly acquired and diverse market segments.