Benefits

Reduces Loan Losses

Improved new business policy

Improved collection management

Accurate loss forecasting

Reporting compliance

Performance analysis at all levels

Vintage analysis, facilitating securitisation

Status

ECM is the product of research undertaken into the lending portfolios and best practices of 6 leading Irish banks and of academic research.

The ECM product has been installed in three leading banks over 4 years where, with progressive enhancements, it has been providing accurate reporting for management and for regulatory compliance.

ECM has been reviewed and approved by KPMG (on behalf of Permanent TSB) and by PwC (on behalf of Bank of Ireland) and by the Irish Revenue Authorities.

Research into the risk models of UK and other foreign banks indicates that ECM offers greater versatility and a higher level of discrimination.

All ECM forecasts are driven off the npv of the lender’s own write-offs and net recoveries, thereby ensuring full market sensitivity ('Marking to Market') to current market conditions, also facilitating stress testing.