It would be an understatement to say that we’re living in critical times. All businesses and most individuals are affected by the present economic downturn triggered by the COVID–19 pandemic. The banking industry is looking for ways to help their clients weather the storm while keeping their own institutions solvent. There’s little doubt that we’ll be seeing more problems loans as the trend continues.
- Deferral tracking flags any repayment problems in the early stages. A postponement prompts a follow-up action allowing the lender to consider best options. Automated and aggregated reporting ensures that all problem loans are managed consistently.
- Watched asset reporting documents the full story of each loan, updating each customer record when any activity takes place.
- Reserve calculator eliminates guesswork with managed impairment calculations and supports collateral-dependent and net-present value of future cash flow valuation methods.
- Relationship monitoring allows you to record notes and conversations about your borrowers in a central location available to all stakeholders.
- Action item tracking allows you to compose checklists that can be automatically populated as milestones are achieved. You can also add and assign tasks manually.
- Reminders alert both the lender and the borrower at agreed check-in times.
- Problem loan queue gives you an overview of the status and critical metrics for all problem loans and allows you to drill in to individual accounts to see what’s being done.
- Optimized problem loan onboarding ensures that you are only entering necessary details. Help text clarifies ambiguous accounting requirements.
- Standardized assumptions allow you to set business-wide guidelines for consistency in various areas such as liquidity discounts and selling costs.
Crowe Problem Loan Management for Microsoft Dynamics 365 helps you automate reporting, systemize best practices among team members, calculate reserve amounts in compliance with standards, centralize communications, and set consistent procedures for dealing with problem loans.
Now more than ever, your lending institution needs to have the tools in place to identify and act on problem loans for your benefit and the benefit of your distressed clients.