Collateral Management

The afb Credit Management Solution (afb-CMS) provides effective collateral management that allow our customers management of collateral via tailored processes, automates the associated processes and optimally supports standard bulk business. The financial services providers' business contracts with borrowers are hedged by collateral agreements consisting of collateral agreement and asset.

The module group Collateral Management is directly linked with the financing operation such as retail and wholesale finance and partner management. Our customers get integrated system support for their requirements for collateral management in the financing transaction.

 

 

Services Collateral Management

  • Managing of collaterals through the collateral contract consisting of collateral agreement and asset.
  • Linking of the collateral contract with the financing transaction to be hedged
  • Specification of the collateral asset (tangible assets such as movable asset, real estate and intangible assets) and integration of third-party systems for automatic evaluation of the collateral
  • Defining the collateral contract such as transfer by way of security, suretyship and warranty etc.
  • Maintaining the applicable fees, such as administrative, storage and retrieval fees for temporary or permanent collateral withdrawals
  • Determination of the partners involved, such as guarantors, collateral takers, collateral recipients and depositories
  • Functionalities for storage, retention and retrieval of collateral together with status tracking and connection of external archiving systems
  • Functionality for temporary and definitive withdrawal of collateral incl. decision, logging and tracking

      Advantages at a glance

      • Integrated system: afb-CMS covers the entire lifecycle of collateral management in one integrated system.
      • High degree of automation: with afb-CMS, our customers operate their collateral management with the highest level of automation. It is designed for high-volume, standardised processes, quick decisions and automated processing of management and termination of collaterals.
      • Free choice of distribution channels: with the solution, financial services providers are present in all B2B sales channels. Cooperation and trading partners can induce final and temporary withdrawal of collateral independently.
      • Increasing competitiveness: in addition to the financing transaction, the module group Collateral Management also offers a sales function for financial services providers in granting credit lines.
      • Wide range of agreements: distraints, transfer by way of security, loan-guarantees, savings agreements, guarantees, declarations, transfers etc.
      • Flexible financial products: the solution makes it possible to offer flexible fees for specific arrangements for collateral.

       

      • For many collateral assets: tangible assets such as equipment (e.g. motor vehicles, machinery or inventories) and real estate (land, buildings or apartments) and intangible assets such as securities portfolio, building loan contracts, insurance etc.
      • Decision within the framework of the risk strategy: afb-CMS makes the decision to withdraw collateral based on the criteria and rules defined by the financial services provider. This ensures compliance with standardised and centralised guidelines and regulatory requirements.
      • Automatic evaluation: in standard bulk business, regular (monthly, quarterly) updating of the collateral value can no longer be manually displayed. The direct connection of evaluation systems allows automatic and regular assessment of the collateral.
      • Professional archiving: an integrated archiving system allows for automation of storage and retrieval.
      • Close interaction: the module group Collateral Management works in an integrated system with the other modules such as Retail Finance, Wholesale Finance, Contract Management, Partner Management and Statistics.

       

      For more information, please contact us

      Solution paper

      Customer journey optimisation based on Business Services

      The future of information technology lies in the quintessence of digital transformation: lightweight, agile services. The afb Fast Intregration Business Services provide the possibility of implementing innovative functionalities in legacy systems, without changing their code basis and functionality.

      Read solution paper

      Case study

      FFS Bank: a partnership for innovative credit business

      FFS Bank is captive bank for Hyundai and Subaru and a brand-independent financial expert. The partnership of FFS Bank and afb is characterised by close cooperation and great innovative efforts. Since the beginning in 2000, the two companies have been regularly developing new innovations together.

      Read case study

      Case study

      Leading automotive bank: automation in financing and leasing operations

      No project without a business case, no investment without a sound basis for decision making. For that very reason, a leading automotive bank decided to work together with the experts of afb. The specific process stages and procedures involved in financing and leasing operations were examined and rated in terms of their optimisation potential as part of a consultation project.

      Read case study

      Brochure

      from mind to market – comprehensive solutions for the financial industry

      We combine market-based expertise with a strong aptitude for technological innovative strength, transforming new knowledge into marketable products and services, and focussing on these factors for success.

      Read brochure

      Solution Paper

      Explore your maturity level

      How prepared is your company for digitalisation? With the Digital Capability Check-Up you can determine the digital maturity level of your company. At the completion of the Digital Capability Check-Up you will receive the detailed analysis results for your own further use, including the identified potential for optimisation for the digital future.

      Read solution paper

      Solution Paper

      Expert know-how for future-proof solutions

      Together with our experienced consultants you will ensure that your strategies and processes are designed to cope with future challenges. We do not just provide you position papers, but support you in identifying, steering and specifying your fields of action as well as in implementing these.

      Read solution paper