How We Partnered with a Leading European Bank to Remediate its Data for Optimal Results
Supporting Seamless Loan Sales & Securitizations
At a glance
CLIENT
Leading European Bank
SERVICE
- Data & Analytics
INDUSTRY
- Financial Services
First Derivative, an EPAM company, helped a major European Bank by utilizing our financial expertise to support both loan sales and securitizations. Ultimately, more than €3 billion in non-performing loans (NPLs) were successfully prepared, sold and migrated, resulting in a stronger NPL ratio.
Enabling Seamless Asset Disposal
Data is vital for any company, but in financial services it’s also tied to a company’s reputation and record of regulatory compliance.
First Derivative, an EPAM company, partnered with a leading European bank to enable secure, reliable data remediation so the bank could sell, migrate or package loans, as needed, to meet required regulatory timeframes.
REGULATORY ENVIRONMENT
Banking on Clean Data
The 2008 financial crisis fueled a surge of non-performing loans (NPLs), which had a devastating effect on the financial services industry. Today, banks must maintain minimum capital ratios, which can be impacted by the book value of NPLs.
To mitigate the impact of NPLs, banks must either raise capital or shed non-performing loans to become compliant.
We worked with the bank to manage and clean up all the data and documents required to enable the sale, completion and migration of loans within required regulatory timeframes. Working across legacy systems, which tend to be siloed, we reviewed, validated and processed nearly 1.5 million documents. All this information was shared through a virtual data room for both enhanced security and to support convenient access.
A bank can dispose of loans via sale or securitization. Either way, data is crucial. After a sale, the bank must migrate the loan and data to an external servicer, and if securitized, the bank must conduct agreed-upon procedures (AUP) before the loan is packaged. In either process, it’s critical to have all data and documents in order. Our financial services expertise made this complicated process easy for our client to navigate.
RESULTS
Tech-Enabled Banking
Our team of consultants and analysts, with both technical and deep industry expertise, immersed themselves in the bank’s systems and data in order to deliver results. Highlights include:
€3 Billion+
Value of NPL loans successfully prepared, sold and migrated
100%
Due diligence completed across all in-scope customers and loans
3.7%
Bank’s NPL ratio after successful loan sales
14,000+
Properties processed, valued and sold
1.5 Million
Documents securely reviewed, validated and processed
PARTNER WITH US
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