Old National Bank
A strong credit culture and need to further enhance credit analysis and monitoring
Driving data governance and client retention
Video Source: LendIt Fintech USA, April 27-29
"We can’t rely on the old ways of assessing risk. We need to have the tools to be more responsive to these different types of recessions, which is why OakNorth’s software is going to be a very important product for a lot of banks."
SENIOR EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT EXECUTIVE, OLD NATIONAL BANK
Opportunity and outcomes
As the team at Old National Bank began to speak to OakNorth, they realized that if they had the ON Credit Intelligence Suite in place before the pandemic struck, they could have been much more strategic in addressing the risk in their portfolio.
Instead of manually going through the loan book from largest exposure to the smallest and spending a lot of time on credits that did not end up presenting a lot of immediate risk, they could have started with the riskiest and moved through those.
By leveraging ON Credit Analysis, Old National Bank will be able to make decisions faster, conducting consistent analysis across new credits, running periodic reviews of existing cases, and executing detailed re-underwrites.
Through analyzing each borrower’s data within its industry and geography, and monitoring it alongside peers using a bottoms-up approach, the ON Credit Intelligence Suite will empower Old National Bank to conduct borrower-level stress testing.
Beyond credit analysis, ON Portfolio Insights generates a forward-looking view, inclusive of sub-ratings on liquidity, debt capacity and business profitability, using scenarios that are highly specific to the sector and geography of the borrower. Old National Bank will obtain a granular view of credit and vulnerability across its loan book. Through the continuous monitoring of active credits, Old National Bank’s Relationship Managers will turn monitoring into a real-time process, and build deeper and more meaningful relationships with clients. It will also provide them with more time to originate new deals.