Capital Market Funding System
As financial institutions face stricter regulations and mounting competition, effective collateral management has become increasingly important. Higher losses due to credit failures and highly volatile stock markets over the last few years have further strengthened institutions' focus on efficient collateral management of the collaterals deposited by customers. Process flows are often not very efficient, and front-office processes are not coordinated with back-office activities. Typically, there is little or no system support, and distributed data makes reporting both time-consuming and costly.
For efficient collateral management, institutions need software that minimizes manual processing tasks and provides flexible capabilities for valuing collaterals using complex business rules. It should also have capability to track receivables, collateral assets. And it should easily integrate with other systems, such as loan systems;
CMFS will enable your business to
- » Minimise Credit and Operational Risk
- » Increase Competitiveness
- » Reduce Operational Costs
- » Maintain Complex Business Rules for Valuation
- » Manage different product (Retail and Promoter Funding) and Asset Types
CMFS powered by KCS, supports all aspects of the collateral management process. The Application is both user friendly and highly scalable, adapting to individual business requirements.
CMFS - Key Features
CMFS is an application against which industry standard can be benchmarked. It is a fully scalable solution to meet the demands of growing business. CMFS offers two modules viz. Collateral Management and Loan Management.
Collateral management provides facility to daily value collaterals using different complex business rules. It also efficiently handles inflow and outflow of collaterals to ensure minimum collateral values are maintained. It also provides facility raise margin calls in case collateral value is insufficient to cover the exposure taken by client.
The complete life cycle of loan, from eligibility to disbursements to complete closure of the loan is handled in the Loan management module. It also has a facility to calculate interest and tracking the payment of the same.
- » Familiar, easy-to-use web based technology (some part is client-server based)
- » User-friendly drop down menus
- » Changes are shared real time throughout the application
- » Audit Trail of changes carried out by users
CMFS - Key Benefits
Wealth of information
"One View" provides wealth of information for a Customer - to name a few: Outstanding Position / Collateral, Outstanding Loan, Margin Call, etc.
Accurate and concise information is displayed, enabling quick decision-making.
The reporting option covers key collateral management requirements via a series reports including: Interest Calculations, Collateral Positions and Mark to Market report. The reports are highly flexible with multiple filters in many reports and further reports can be added to meet individual customer's requirements.
Control and Diversification
In CMFS collaterals are segregated account wise, and mark-to-market daily to ensure that prescribed collateral margins is maintained. Based on the business rules, system automatically assesses the eligibility of proposed collateral, provide margins by security and apply concentration limits. By controlling all movements of collateral, system ensures that collateralization is maintained to cover the exposure. An up-to-date collateral overview and online calculations of collateral coverage or loan to-value ratios can provide comprehensive information for developing new business or acting in order to avoid losses.