Analyzing diverse valuation reports for risk-weighted asset capital relief
Leading European Bank
A leading UK-headquartered retail and commercial bank.
Challenge
The bank needed to develop the capability to analyze the composition of real estate collateral supporting its SME lending portfolio. Although collateral went through a robust assessment as part of the lending approval process, very few details were captured in a structured format.
For each real estate asset pledged as collateral, the bank typically had a valuation report provided by a third-party surveyor. These valuation reports varied significantly in terms of format, but largely contained the key information that the bank needed to analyze.
By extracting the information within the valuation reports and organizing it in a structured format, the bank could analyze the data in order to obtain risk-weighted asset (RWA) capital relief.
Solution
Using Eigen’s AI platform, the bank was able to automate the previously manual and intensive analysis of valuation reports.
- The automative extraction of data including the type of property, location, rental income, property status, and multiple variants of market value under different assumptions.
- The bank is now able to achieve a significantly better valuation of the capital they have tied to their loans, driving RWA relief.
- The information is now available in a structured format that can be used for additional insights, deliver value and drive efficiencies.
Impact
Eigen was chosen because of its ability to process a document type that is highly variable and its ability to extract custom data points as defined by the bank. Eigen was also able to seamlessly integrate with delivery partners and other solutions within the bank. With Eigen the bank was able to drive significant automation efficiencies, leading to:
- Increased processing speed: using Eigen proved to be ten times faster than the previous manual process. Saving time and money.
- Higher productivity: as a result of automating this process and equipping the bank’s staff with cutting-edge AI technology the team’s productivity increased by 75%.
- A single source of truth: for the first time the bank had this highly variable hard to access data in one place, driving wider efficiencies.
Additional Resources
eBook: A User’s Guide to Intelligent Document Processing Technology
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