{ Business Intelligence

Credit Monitoring Module

Overview Determine eligibility of the applicant:

Credit monitoring module is an essential and mandatory
module that every banks must invest their time and
resource to keep engaging with their day today account
activities, it provides help to the bank to spot errors or
signs of identity theft therefore the Bank can take steps
to address them and to quickly speck suspicious
activity.
The importance of Loan analysis is to ensure that loans
are made on appropriate terms and conditions to clients
who can and will pay them back as of the schedule
agreed by both parties.
The importance of credit analysis is to insure effectual
approach of determining loan by type and nature.
The aim of Rubikon BI credit monitoring loan analysis
module is monitor and manages the information flow for
the decision makers through:
To place good and appropriate loans:
To distinguish the bank potential or existing
Clear and precise representation of degree of
credit risk of the borrowers, is he/she eligible
according to the program criteria?
Loan Repayment Forecasting:
Loan monitoring included by not limited to
processes ahead of loan disbursement and
approval.
BI Credit Dashboard
Dashboard is a pervasive method to present information
to the management. All the critical activities of the
business are aggregated, measured and analyzed by
the Performance Manager to give clear insight into
business efficiency.
This dashboard allows the management to track loan
information from the beginning which is credit
application were detail information about customer is
recorded to determine the loan behavior will or will not

Credit customers behavior which can generate generate reasonable income for the bank if the

Income from the repayment in to a business application is eligible as of rules and regulation of the
bank . This will give the management a clear and
dynamic view of the loan.

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Credit Dashboard
Proficiency
Business Unit Performance against the Product:

The business unit performance will be shown against

each of the loan product against the basis of Loan
ageing. The metrics will be shown are
o Outstanding Loans Principle
o Repayments Principle
o % of Principles against NPAprinciple
o Principle outstanding Across Sectors
o Allowed Stress Levels. Credit Balance Trending

The trending of the repayment of the accounts can be

monitored for the monthly basis from the selected date
with up to six months of history.

Forecast and what-if

Forecast can be achieved based on the account

repayment date up-to six months.

Fund Analytics

will be separate dashboard which can be compared

against the different period of dates. With the
information as
o No. Of Loan account
o Loan Balances against the Different sectors.

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What-if:

The what-if
Key Ratio's in Lending
scenario can be estimated if loan has not repaid, what Profitability Ratios
will be
A range of profitability ratios will clearly indicate how
o Penalty amount
successful an organization is financially. However key
o If a Sector has major setback in the market
ratios will enable the decision making an organization
o Natural disaster or famine hits
will need to make to sustain that success as it grows.
This scenarios can be forecasted with trending amount
Ratios such as Portfolio Yield demonstrate a Banks
of repaying the loan amount.
ability to generate cash from interest, fees and
commissions. Declining yield might indicate the need for
Collection Analysis
a change in product mix, a change in loan pricing or an
The collection analysis will help to keep track of debtors
issue with increasing arrears. Others like Net Interest
by determining which accounts have highest payment
Margin will provide good indicators of profit on interest
potential by advanced segmentation method and by
earned against interest paid, whilst Return on Average
monitoring debtors recovery through portfolio.
Assets will demonstrate how the Bank is managing its
assets. A positive RoA indicates how mature the Bank
has become.

Capital Adequacy Ratios

Key to understanding if an MFI can absorb unexpected
losses is the ability to monitor capital adequacy and
solvency ratios. Excessive leveraging may indicate a
risk in an Banks ability to absorb sudden losses. Debt
to Equity Ratio shows liabilities over equity and
indicates how an Bank has leveraged its own funds to
Disbursement Analysis
finance its loan portfolio. analyzing CAR will help to
Disbursement analysis will help show amount disbursed
minimize the risk of insolvency from excessive losses
for active and not active loans which will help the bank
of the bank .
to visualize how many amount disbursed cumulatively
and forecast potential customers to disburse for which
will help to maximize the bank's available cash for
investment or debit payments and help to improve flow
of cash by increasing interest earned

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 Liquidity Ratios

Efficiency & Productivity

Maintaining sufficient liquidity is vitally important to any
Bank and MFI's . Part of asset and liability management
procedures is to ensure sufficient cash or cash Ratios
equivalents are maintained to meet short term Efficiency and productivity ratios provide a clear set of
liabilities. Three key ratios in this area are Cash Ratio, metrics that show how well the Bank is serving its
key to ensuring the Bank or MFI meets its short term customers. There are many ways in which these can be
obligations, Savings Liquidity which, when too high may measured depending on the operating model of the
indicate large cash reserves and an inefficient allocation organization in question but some of the more common
towards earning assets. metrics are as follows:

Asset Quality Ratios o Cost Per Active Client Expresses operating

expenses as a percentage of active clients.
Asset quality goes to the heart of the quality of the loan
Clear policies will be required to define an active
portfolio and can show the current risk inherent in the
client as clients may have multiple accounts or
loan portfolio at a given point in time which usually
services.
require interest payments . Increasing trends in past
o Borrowers per Loan Officer Measures the
due loans and write-offs give clear indication of
loan application load per loan officer.
potential profitability and funding issues ahead. Some
o Active Clients per Staff Member Measures
prominent ratios in this area are NPL[30] days Past Due
the overall productivity of the MFIs employees
and Write-Off Ratio, which when combined as NPL[30]
managing clients.
+ Write-Offs Ratio provides a clear measure of the loan
o Average Outstanding Loan Size Measures
portfolio quality and avoids the possibility of troubled
the average outstanding loan balance per
loans be moved between NPL and Write-off categories.
borrower which provides an indication of the
typical outstanding financing accessed by
clients.
o Average Loan Disbursed Measures the
average valued of each loan disbursed. This can
be compared to the national income per capita
or as a % of a national poverty line as an
outreach indicator.
o Average Deposit Account Balance Per
Depositor Provides a ratio for analyzing
client outreach for deposit taking MFIs.

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Technology Specification
The analysis of the Credit module has been completely
done at Rubikon standard architecture. Following are
the spot lights on Analysis.

o Data Populated during EOD Operations with BI

OS.
o Data will be projected with current tool
implemented.
o Data growth will be based on the Metric agreed
to configure
Benefits:

o No Technology Engineer dependency.

o Self Instructor dashboards
o Proper Performance of dashboards will be
monitored to keep relevant information loaded.

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On time and within budget.

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