Bank of Ireland
Problem:
Bank of Ireland required a modern Collateral Management Solution to replace their existing home grown application to better manage its collateral processes. That is the preparation, perfection, tracking and release of collateral. Some of the challenges which needed to be addressed in the new solution included monitoring the valuation of their collateral, diarising re-valuations or allowing efficient workflow of tasks assigned to specific teams to ensure tasks matched skills and making best use of their experienced staff. The collateral types taken were wide and varied –property, guarantees, stocks/shares, cash, marine, vehicle, company assets etc. The existing application did not meet the Basel II requirements for exposure risk. Bank of Ireland also required a solution which could address specifically its exposure against the loan and the tracking of the undertakings. Finally, Bank of Ireland requirements included the need for a centralised solution which could support multiple business lines, e.g. Business and Commercial operations, in particular replacing their dispersed systems and reduce the risk of experienced staff attrition. This centralised solution would also significantly reduce their overall IT costs.
Solution:
The business was awarded to Rockall Technologies in the face of major competition from a bespoke build by a major consultancy and other vendor solutions. It was deemed that the Rockall solution addressed the problems outlined above plus brought additional benefits which Bank of Ireland continue to benefit from, this include support for their overseas subsidiaries of the same platform.
The Rockall solution met the BOI requirements. Being an "out of the box" solution meant that it was a robust solution which had been extensively tested in the market therefore reducing the overall project risk plus reducing the time to going live. The project commenced in April 2003 and the solution went into production in September 2003. This included the migration of hundreds of thousands of their existing collateral items to the Rockall solution.
1.3 Benefits Realised:
- Control of the collateral processes with less skilled staff
- Significantly Improved risk management, control of LTV (Loan to Value)
- Better customer experience – faster access to funds
- Significant reduction in costs
- Basel II compliant
- Single platform, bank wide
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