AFS Enhances Credit Risk Management with New Clients and Upgraded Tools

Automated Financial Systems (AFS)

EXTON, PAAutomated Financial Systems, Inc. (AFS®) has announced updates on its RMA Credit Risk Navigator (CRN), a tool that helps banks benchmark loan performance, credit quality, and manage risk. The system, powered by AFS’s commercial credit risk benchmarking service, is now being used by two new clients: a top-20 U.S. bank known for small business lending and a prominent Canadian commercial lender.

Doug Skinner, Director of AFS Business Intelligence, expressed confidence in the tool’s benefits. “We are confident that CRN’s extensive data granularity, customizable reporting, and intuitive dashboards will be sound additions to their risk management toolkits,” he said.

The CRN database spans all major industries and product types, generating key risk indicators for both commercial and industrial and commercial real estate loans. Users can leverage a user-friendly dashboard to perform portfolio benchmarking and peer analytics, which is essential for robust risk management.

Since its inception over 20 years ago, when RMA and AFS saw a need for greater transparency in commercial loan performance, CRN has continually evolved. Recently, the service migrated to Azure, offering cloud access for faster onboarding and improved client experiences. Upcoming enhancements to risk migration capabilities will allow clients to track loan upgrade and downgrade performance throughout the credit cycle.

A Chief Credit Officer from a leading Northeast bank detailed how CRN was pivotal in updating their credit policies. “We compared the historical delinquency and nonaccrual levels for each of our specific industry sectors to the overall market average. We used the extensive data history that CRN offers to understand which sectors were inherently riskier, and we adjusted our lending limits accordingly for those sectors to best allocate our capital and minimize loan losses.”

With these advancements, AFS continues to provide critical tools for banks to manage credit risk effectively. The addition of new clients and the ongoing improvements highlight CRN’s role in helping financial institutions navigate complex lending environments.

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