Management of Credit Exposure Limits
Our Client is one of the largest banks in Central and Eastern Europe, works with corporate clients including enterprises and financial organizations, and government agencies.
- 100+ million individual customers
- 2,9 million corporate clients worldwide
- 14,000 branch offices across the country
The bank utilized an ERP system (a SAP based application) for storage of all data on limits. The client required a system that would allow limit management options for users through other bank’s internal systems without a direct access to the ERP application.
The implementation of such system would allow to manage credit limits in real time and to decrease operational risks by embedding automated control and providing users with the necessary information to conduct transactions.
The final solution is a service that manages credit exposure limits with the data stored in an ERP application. The system receives and processes requests from other systems and their users, addresses a SAP Limits module, and returns with the result presented in a way demanded by the user. It also includes full support for the process of conducting transactions working with limits in terms of UI, business logic, integrations:
- Creation and editing of clients’, groups of clients’ and products’ limits
- Viewing the entire structure of the limits both for the Client and for the group of Clients
- Linking products to limits for subsequent accounting
- Viewing limits utilization for products and contracts
- Issuance of information on limits for the formation of a loan application
- Viewing the structure of restrictions set for the Client and the group of Clients
- Orchestration of processes based on an modern and powerful BPM platform
- Implementation of all business functions as atomic "microservices" for each type of interaction with limits
- API in the form of sections and data page for displaying a list of limits and obtaining data about limits
- Encapsulation of all the functionality of working with limits in SAP LM, the module can be used by other components to access SAP LM
- Definition of allowed actions and types of a limit tree representation by business roles
- Pega 8.3
- Java
- Rest
- Kafka
- Spring
- SpringBoot
- Jason RPC
- Apache Fling
The solution is based on a BPM approach allowing a step-by-step execution of multiple processes taking into account:
The system would initiate a business process related to a specific business role in compliance with an access level, seniority or a business function
Operational risks control
The system checks what products can be initiated in a recipient’s system and starts a business process relevant to a certain product accessing a Product catalog for business rules
The ‘Limits’ component gathers variables’ values from the SAP application following a tree structure and depicts the key limit’s components in a user’s system UI such as:
- Amount of a Client’s overall limit broken down into Agreements’ limits
- Amount of a limit for a Group of Borrowers
- A set of restrictions for a Client or a Group of Clients
- Amounts of sublimits for a Client / a Product and a Subproduct
- Amount of a utilized limit
All necessary parameters as time limits, sets of requirements, utilization predictions are put in place as well.
RESULTS
The limits’ component for Credit Exposure Limits management
- Simplified loan workflowDecreased number and complexity of manual screenings saves time on loan workflow.1
- Access to informationThe detailed information is available including clients, borrowers, industries, and products.2
- Reduced risksOperational risks reduction while conducting operations with limits.3
- Easy aggregationA convenient tool that helps to aggregate all the information in the form of a limits’ tree.4
