Bank underwriting involves myriad challenges for its practitioners. For example, when assessing the financial risks associated with commercial establishments, lending officers need to confirm legal identities, evaluate financial resources and exposures, determine pricing and terms, set credit limits for both the borrower and its corporate group, monitor credit portfolios, and comply with regulatory obligations. Addressing each of these challenges requires granular data from a reliable source that is up-to-date, complete, and stable over time.
With so many factors to consider, it’s vital that the data informing these decisions can be trusted and can help you perform your role more efficiently. For example, to avoid duplicates in the database, firmographic data should be structured according to the firm’s preferences and mapped to its database. Similarly, financial data would need to be standardized and mapped to the firm’s credit assessment methodology for easy evaluation and peer comparison. Data that is delivered in such a structured and standardized way allows you to deliver high-quality lending decisions on a timeline that meets your objectives. Without such solutions, bank underwriting can be time consuming, costly, and fraught with risk.
The risks associated with bank underwriting are exacerbated in a tightening monetary environment, as interest rate volatility increases. Credit and liquidity risks are elevated and underwriters need to be vigilant in managing their counterparties and their own financial exposures, while maintaining growth and liquidity.
These risks, in addition to many others, necessitate a more diligent approach to underwriting. Partnering with a trusted third-party data provider can help underwriters gain insight into the creditworthiness of barrowers and improve their ability to assess a company’s financial fitness. Timely and granular information, delivered when it's needed and how it's needed, means underwriters can better anticipate and manage risks, instilling more confidence in their decision making.
And, when underwriters have confidence in their decisions, they're able to complete tasks more efficiently and effectively, leading to outcomes that help meet objectives across their credit portfolios.
- Increase your operational efficiency with structured and standardized financial data delivered to you how and where you need it.
- Near-real time news and alerts to help you monitor market developments and news about existing and potential clients.
- Impartial ratings and scores, including pre-scored and continually updated probability of default measures, to help you make more confident credit decisions.
Read insights from Paul Coni, Assoc. Director - Sr. Product Analyst, and Irakli Pipia, Director - Sr. Research Analyst, on how to use third-party data to help you make more confident and effective bank underwriting decisions.
Bank Underwriting Solutions
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The CreditLens™ solution transforms credit lifecycle management by digitizing and automating every step of the credit process.
The CreditLens solution helps financial institutions make better credit decisions, with increased speed and efficiency. Its innovative technology enables consistent spreading, which powers advanced analytics, including the ability to compare and benchmark your portfolio for enhanced risk assessment.
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BankFocus allows you to research and analyze banks, for counterparty credit risk and portfolio analysis
BankFocus combines renowned content from Moody’s Analytics and Moody’s Investors Service. The result is a banking database that you can use to identify, analyze, and monitor bank performance. BankFocus offers you a range of access and analysis options including a contemporary interface and integrated workflow solutions.
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NewsEdge Suite of Solutions
Bring together real-time news sources, and the best of the business web and social media to empower decision makers. Our proprietary capabilities include a number of patented components which offer our users unique advantages. The NewsEdge technology engine ingests, enriches, and distributes content in sub-seconds assuring the users of our interfaces and feeds fast access to support better decision making.
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Moody's Analytics Pulse, the largest database of B2B credit information in North America
The Moody’s Analytics Pulse platform helps credit departments protect their accounts receivable (AR) portfolios from unpredictable businesses, with increased speed and efficiency. Pairing innovative technology with one of the largest databases of B2B credit information in North America, the platform delivers timely insights about customers, including easy to read credit reports, enabling businesses to act before their receivables are at risk.