Collateral Management

Collateral Management is one of the central administrative processes in a large number of financing transactions. Financial services providers' contracts with borrowers are secured through collateral contracts consisting of the collateral agreement and assets. The management of collateral also has a sales function when granting credit lines.

Within the afb Credit Management Solution (afb-CMS), the Collateral Management module offers comprehensive possibilities for the automated management of collateral via tailor-made processes as well as optimum support for standard volume business. Collateral Management is directly linked up with the financing business, such as retail and wholesale financing as well as partner management.

 

 

Features 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

      • End-to-end system: all processes of the Collateral Management's entire life cycle are designed as an integrated, digital system.
      • High degree of automation: the Collateral Management module group within afb-CMS is automated and designed for high-volume, standardised processes and fast decisions.
      • Improved competitiveness: in addition to the direct financing business, Collateral Management also has a sales function for financial services providers in the granting of credit lines.
      • Broad spectrum of agreements: collateral Management includes a wide range of contract forms, including seizures, transfer by way of security, guarantees, sureties, declarations, assignments, etc.
      • Flexible financial products: flexible fee structures can be defined for specific agreements.
      • A wide range of collateral assets: Collateral Management takes into account tangible assets such as movables (e.g. motor vehicles, machines or inventories) and real estate (land, buildings or apartments) as well as intangible assets (e.g. securities holdings, building loan contracts, insurance policies).

       

      • Individual risk strategy: decisions to withdraw collateral are exclusively based on the criteria and rules defined by the financial services provider. This ensures compliance with standardised and centralised financing policies 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.

       

      For more information, please contact us

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