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Capital
Market Funding System |
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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:
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Minimise Credit and Operational Risk |
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Increase Competitiveness |
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Reduce Operational Costs |
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Maintain Complex Business Rules for Valuation |
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Manage different product (Retail and Promoter
Funding) and Asset Types |
Product Solution: 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: 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.
Loan Management: 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.
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Familiar, easy-to-use web based technology (some
part is client-server based) |
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User-friendly drop down menus |
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Changes are shared real time throughout the application |
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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.
Extensive reporting: 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. |
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