Mergers & Acquisitions

Equipping your team with foresight and insight 

Before the transaction

 

Ahead of a transaction, ON Portfolio Insights can help acquiring banks or advisers understand loan portfolios for the purposes of setting a fair value mark for the portfolio, diligence the portfolio overall, and segment the portfolio to better identify specific loans for individual loan file review. It provides an extra data point in addition to banks’ internal PD, LGD and risk-rating calculations. This provides them with an outlook on each loan on a forward-looking basis, as well as deep insight into the portfolio going into the transaction.

PI_Icons_Foward_Looking_View More Data, Better Decisions

Before acquisition run granular, forward-looking scenarios to access the future of each borrower

PI_Icons_Consistent_View After the transaction Immediately get a consistent view of each obligor across the portfolio
PI_Icons_Real_Time_Data Ongoing care for the portfolio Create early warnings to be alerted to potential credit issues before they arise

Using more data for better decisions

Historically, acquisitions have been done on the basis of a loan tape comprised almost exclusively of core banking data. ON Portfolio Insights requires a small amount of additional data around the working capital, debt load and overall health of the businesses in the portfolio. This allows it to run granular forward-looking scenarios which assess the future liquidity, debt capacity and profitability for each borrower. This in turn, gives acquiring banks the ability to identify which parts of the portfolio will require further funding, which should be targeted for watchlist, and which might be good candidates for a full re-underwrite to ensure they meet the bank’s underwriting standards. 

After the transaction

Having made an acquisition, ON Credit Analysis allows banks to immediately get a consistent view of each obligor across the portfolio, irrespective of where the loan was underwritten. Due to the separation of data across different core banking systems, and because of (sometimes dramatically) different credit policies and data management practices across institutions, certain tasks which should be simple could end up taking months. ON Credit Analysis ensures a common risk management standard can be enforced for all loans, and builds subsector-specific forecasting ability on top of that. 

Ongoing care for the portfolio

ON Porfolio Monitoring allows banks to create early warnings to alert them to potential credit issues before they become too acute. The operational efficiency provided by the ON Credit Intelligence Suite allows them to re-underwrite all loans to a common standard as needed. ON Portfolio Insights provides a dynamically updated view of risk so the credit team is always prioritizing in the right order where it will have the greatest impact on the portfolio.

"[OakNorth's] software is helping us improve our portfolio risk management using big data and AI, while providing relationship managers with a deeper understanding of their borrowers and industry verticals."

Jay Sidhu
Customers Bancorp
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What We’ll Cover:

  • What makes our technology different
  • How rapidly you’ll see results
  • Ease of installation and cost benefits
  • Current customers and outcomes