Old National Bank to deploy OakNorth’s Credit Intelligence Suite
- With $22.5 billion in assets, Old National Bank ranks among the top 100 banks in the U.S. and has been recognized as one of the World’s Most Ethical Companies by the Ethisphere Institute for nine consecutive years;
- The events of the last year have demonstrated the strengths of Old National Bank’s approach to underwriting. They have also highlighted areas where investment could further enhance its credit analysis and monitoring in an innovative way;
- Through leveraging the ON Credit Intelligence Suite, Old National Bank will be able to conduct borrower-level stress-testing and manage risk more systemically across its C&I portfolio;
- It will also be able to leverage its data more effectively and provide actionable insights to its Relationship Managers.
The events of the last year have demonstrated the benefits of Old National Bank’s approach to underwriting but have also highlighted areas where investment could further enhance its credit analysis and monitoring in an innovative way. By leveraging the Credit Analysis application with the ON Credit Intelligence Suite, 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 analysing 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, OakNorth’s Portfolio Insights Tool 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, enabling Old National Bank to obtain a granular view of credit and vulnerability across its loan book. Through the continuous monitoring of active credits, OakNorth will enable Old National Bank’s Relationship Managers to 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.
Peter Grant, COO of OakNorth, commented: “Old National Bank is dedicated to building long-term, highly valued partnerships and keeping its clients at the center of all it does. The executive team understands that with easier access to borrower and third-party data in one place, Old National can identify areas of opportunity across the credit process going forward. Old National has a wealth of data that, with OakNorth, can be leveraged to create a superior borrowing experience for businesses and shape a smarter commercial banking model that drives growth.”
Daryl Moore, Chief Credit Executive and Senior EVP at Old National Bank, said: “OakNorth’s software should enable our relationship managers and portfolio managers to use their time more efficiently and build deeper and more meaningful relationships with commercial clients, as opposed to focusing their time on manual and laborious financial analysis. The clients you support in the tough times and during the cycles like we are in currently often become your most loyal, so OakNorth’s ability to help us gain clarity on the challenges our clients are facing and what level of support they need, is something that could prove critical for our business over the next 18-24 months. As a commercial bank, it is essential for us to continually improve our capabilities in this space through investment in people and technology, so we are excited to be entering into this strategic partnership with OakNorth.”
Notes to editors
OakNorth is the creator of the ON Credit Intelligence Suite - proven cloud software that transforms commercial lending by helping banks build deeper relationships with their clients, unlocking new opportunities, and delivering credit analysis 10x faster than traditional models – with lower risk and greater efficiency.
Credit Intelligence is a data-driven technology that gives lenders a bottoms-up, granular, forward-looking view at both the borrower and portfolio level, based on expansive and dynamic data sets and sub-sector specific scenarios. It deploys automated, continuous analysis of multiple drivers across a borrower's business, its peer group and the wider economy. This provides an independent, consistent, detailed framework that offers deep contextual insight and enables rapid underwriting, immediate stress-testing and more agile and targeted strategic lending.
Built over five years by a team of 250 credit scientists and software engineers, it has powered OakNorth Bank in the UK into the top 1% of banks globally, measured by ROE and efficiency, enabling it to profitably manage a multi-billion-dollar commercial lending portfolio with no credit losses to date. The ON Credit Intelligence Suite is now available to banks across the world, enabling them to realize the benefits of lending smarter, lending faster and lending more.
For more information about OakNorth, please visit https://www.oaknorth.com
ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB), the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $22.7 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for nine consecutive years. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long-term, highly valued partnerships and keeping our clients at the center of all we do. This is an approach to business that we call The ONB Way.
Today, Old National’s footprint includes Indiana, Kentucky, Michigan, Wisconsin and Minnesota. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services.
For more information and financial data, please visit Investor Relations at oldnational.com.