Corporate Banking Framework

OVERVIEW

With corporate houses competing aggressively to surge ahead in a changing business world, banks face an onslaught of new demands from them. As these businesses spread out into the globalized world, there is an increased need for banks to provide consolidated views of financial information and support for transcontinental transactions, in real time. Driven to retain and grow their corporate clientele, banks are integrating newer technologies into their core business processes to meet the transforming rigours of corporate banking.

Finacle Corporate Banking Framework

Finacle universal banking solution is geared with a feature-rich corporate banking framework. This technology infrastructure can truly equip banks seeking to enlarge their corporate business portfolio and extend reach to large corporations.

CORPORATE BANKING FRAMEWORK

Liquidity Management Commercial Lending Limits

Corporate Banking Securitization

Collaterals

Syndication

Trade Finance

Key Offerings
Corporate Customer Information Finacle provides a 360 degree unified view of the corporate customer through its Enterprise Customer Information File. This enables the bank to create and maintain customer records, which detail financial, group, product preference and trade finance information. The customer record can be linked with related corporate customers and individuals, such as authorized signatories, guarantors, shareholders and representatives. This enables the maintenance of aggregated and consolidated customer, account and relationship information, across the enterprise. Commercial Lending Finacle has rich features and functionality for commercial lending. This includes: Flexible and custom-defined product creation Highly parameterized custom-scheduled disbursement Differential interest rate setup for draw-down, automatic interest accrual and booking Flexible repayment scheduling such as holiday on loans, normal periodic repayments and bullet payments Adjustment or offset sequence on collections - option to first adjust interest demands or principal demands Customer level appropriation of a single amount to multiple commercial loan accounts of the customer in accordance with a pre-defined account sequence Detailing of account information related to linked accounts and associated project details Handling of pre-payments and calculation of interest on pre-payment amount Booking of forward contracts against the loan account Debt consolidation and crystallization of overdue installments Automatic asset classification, partial write-off and provisioning definition in accordance with the banks norms

Liquidity Management Liquidity management in Finacle includes a comprehensive range of fund management solutions for corporate customers, designed to enhance return on funds, minimize overdraft charges and optimize funds positions. Finacle offers liquidity management solutions in two proven models, popularly deployed the world over: Target Balancing Notional Pooling Securitization Finacle supports securitization by providing an avenue for banks to dispose assets to investor groups through creation of a pool of accounts. This is premised on pre-defined parameters such as customer, product and collateral. Pool processing, assessment, reassessment and cancellation are supported. Receivables management through an Escrow account for Special Purpose Vehicles (SPV) is supported. Purchase consideration can be computed on the basis of principal outstanding with or without the discounting factor, with a wide range of service fees computation, at the pool and account levels.

Limits Finacle universal banking solution supports a global, centralized structure for limits management. Online real time monitoring and updating of multi-currency exposure on transaction completion, is supported. A hierarchical structure with unlimited levels of limits and sub-limits for a customer or a corporate group can be defined. Other features include: Revolving and non-revolving limits, for funded and non-funded lines of credit Exception handling on busting of limits during account opening, maintenance and transaction events Limit level interest rates for overdraft and term loan accounts Shared limits for multiple customers and user-maintained ad-hoc limits Transfer facility limits and re-transfer limits; support for future-dated limits Collateral Management Finacle universal banking solution supports the definition and maintenance of a wide range of movable and immovable securities in multiple currencies, linked to various credit facilities. The collateral can be linked to a limit or an account and drawing power can be derived from the value of the collateral on a pre-defined basis such as valuation, margin, loan-to-value ratio and revaluation, in terms of market value. This helps banks manage online exceptions at the account, limit and transaction levels on collateral value erosion, withdrawal of lodged collateral and expiry of collateral. Trade Finance Finacles trade finance offerings are full-fledged and present multiple products and services that cater to every trade requirement of the banks corporate clientele. Banks can initiate inward and outward remittances with STP capabilities for major payment systems used in cross-border funds transfer. Import and export financing is enabled with products such as pre-shipment & packing credits, post-shipment credits, documentary credits and bill discounting. Finacle universal banking solution can handle forward contracts and linkage of the contract to various events such as disbursement, rollover and offset. The solution supports maintenance of Nostro and Vostro accounts, while facilitating reconciliation and online position updates on account of cross-currency transactions. Syndication Finacle offers multiple avenues for facilitation of syndication arrangements for project financing and large corporate loans involving multiple banks. It supports syndicated loan products over a three layer structure referred as the facility, tranche and drawdown with support for complex transactions involving payments, interest, notices, fees, charges, drawdown and documentation.

Business Benefits
Aggregated Cross Border Service Finacle empowers banks with a comprehensive facility to view critical corporate customer information and monitor transactions across geographies through a single interface. This plays a vital role in enabling banks to provide all the global financial solutions demanded by business houses expanding their footprint across geographies. Differentiated Product Offerings Finacle corporate banking framework helps banks present a wide range of products and services that meet the needs of businesses of every size and domain. Its flexibility to support rapid deployment of innovative offerings enables banks to cater to the varying demands of emerging segments of corporate customers. Risk Mitigation Finacle presents effective controls for exposure management and risk mitigation. The centralized limits and collateral modules, elaborate exception handling mechanism and provisions for comprehensive audit trail, lay the foundation for a robust and proactive risk management strategy. This creates a risk-managed, secure environment for corporate banking.

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