In recent years, many financial institutions have increased their adoption of data and new technologies to manage credit portfolios. Against this backdrop, the IACPM has collaborated with McKinsey & Company to survey 44 global financial institutions on latest developments in data and analytics to enhance credit decision processes and inform credit portfolio management strategies.
The three main study objectives were:
- Understand industry practice on the use of traditional and alternative data sources for credit risk identification, assessment, and monitoring (e.g., early warning indicators).
- Understand the degree to which different data types and analytical approaches are in use or under consideration across portfolio segments.
- Develop the best path forward to incorporate next-generation data and analytics across Corporate, Small and Medium Enterprises (SME), and Commercial Real Estate (CRE) portfolios.
A white paper summarizing key findings has been published.
Data and Analytics Innovations to Address Emerging Challenges in Credit Portfolio Management
Detailed benchmarking reports have been shared with the 44 participating IACPM member firms. The report enables IACPM members to confidentially benchmark practices with those of other leading financial firms. Please email Juliane@iacpm.org to find out if your firm participated.
The IACPM also held two webinars to present insights from the study, for North America/ Europe and Asia/ Australia respectively.
The webinar presentation is available here.