Development of a risk tool based on SAP / Default risk lowered in the event of loan allocation / Providing rating and scoring results in the regulatory context
Kaarst, 2nd September 2015. fidis GmbH, the Federation of the Registered Associations Creditreform e.V. and Creditreform Rating AG have entered into a strategic partnership. The goal of the cooperation is to merge financial and rating data in a risk-tool on SAP basis. This application will become available to banks, factoring service providers and companies in order to enable them to carry out detailed risk assessments for customers, debtors or suppliers. The default risk, in the event of credit allocation, will thereby be significantly lowered.
“For creditors, irrespective whether they are banks or companies with outstanding accounts, it is important to undertake a more extensive check of the customer and debtor creditworthiness on a regular basis, in order to counteract the possibility of default,” explains Thomas Richter, member of the executive management of the Federation of the Associations Creditreform e.V. “This process is very complex. The cooperation with fidis will allow the rating system and our data to be integrated into a standardized IT application.” Stephan Schütrumpf, a board member of Creditreform Rating AG adds: “Merging fincial information and rating data based on account balance into a single system creates the basis for comprehensive risk monitoring. For our customers, this offers a better way to hedge payment default risks.”
According to the Creditreform Solution Partnership scheme, fidis is set to cooperate with the Federation of the Associations Creditreform e.V. as well as with Creditreform Rating AG. A lot of information will thus become available for assessing companies. Based on that principle, fidis is developing an efficient risk instrument that meets regulatory requirements. “The more information companies have on their partners, the greater the chance that they will be able to prevent loan defaults,” explains Otto Johannsen, Managing Director of fidis GmbH.
fidis GmbH is one of the few providers worldwide to have developed software on SAP basis for financial instruments that rely on trade receivables. RISK.pilot can be integrated into any SAP financial accounting system. Tens of thousands of contacts can be checked in this manner in a short period of time. An early warning system shall indicate in a timely manner in what area action needs to be taken.
“Since suitable systems have not been available until now, banks and large trading companies often undertake checks on their debtors manually and selectively,” explains Otto Johannsen. “Many have the option of taking action only when there is imminent danger – but the money is possibly gone by then. If I can detect the problems of my debtors in time, I can also counter that in a timely manner.”
Creditreform represents financial information, claims management, marketing services as well as systems and consulting services. 129 independent business locations in Germany are part of the Federation of the Associations Creditreform e.V, servicing around 126,000 members of all sizes and industry sectors. The scope of the services provided ranges from making selection based on creditworthiness as well as providing new customers with credit information on companies and private individuals right up to supplying complete system platforms for company-internal risk management and sophisticated claim management tools. In the claims management department, Creditreform offers full service toward recovering outstanding amounts. The spectrum includes assuming the responsibility for dunning, assisting with business and legal dunning proceedings as well as the long-term monitoring of enforceable claims
About Creditreform Rating AG
As a part of the internationally active Creditreform group, Creditreform Rating AG is one of the leading European rating agencies today. As a rating agency Creditreform Rating AG is registered by national and international regulatory authorities. Thus banks and institutional investors are permitted to use Creditreform ratings to meet the regulatory capital requirement according to Basel II (solvability regulation). Creditreform Rating AG is independent and registered as rating agency at the European Securities and Markets Authority (ESMA). In order to assess credit risks, the company provides ratings and risk management solutions. The credit services department is specialized in supporting the development and further processing of internal and external ratings systems in compliance with the regulatory norms (for instance, MaRisk, KWG, SolvV as well as EU ordinances).
fidis GmbH is internationally one of the leading service providers of standard software for factoring and ABS processes based on SAP. The use of “FACT.pilot®” and “ABS.pilot®” enhances the competitiveness of factoring companies as well as the banking houses and saving banks. At the same time, they also fulfil the statutory stipulations. The modular structure of the software ensures quick implementation on the required scale. Irrespective of its size, every business can take advantage of this solution. fidis was founded in 2000. Its customers include leading factoring companies, big banking businesses and savings banks. www.fidis.com