Decrease risk and decision times for bank guarantees

Embrace an easier process with Applica RTA

A bank guarantee, also known as a bank bond (but not to be confused with debt securities) is an undertaking by a bank to cover debt or risk on a transaction. This may sometimes be used as an alternative to a company offering security for the debt itself, although banks will usually require some form of security or quasi-security in return (so obviating this benefit), including:
·      Cash collateral
·      A counter-indemnity
·      Security over company assets

Bank guarantees

Situation:

An employee at a large financial institution needs to run an assessment in order to determine whether or not to give a bank guarantee. This process requires manual scrutiny of complex corporate documentation and correctly dispatched documents to different categories of bank guarantees.

Problem:

The manual process is expensive as is executed by a qualified risk assessment employee. Manual extraction of information is also slow, error prone, and requires significant human effort.

Solution:

Applica RTA categorizes all of the bank guarantees into six independent baskets. Each basket represents a different type of bank guarantee (e.g.: Performance guarantee, Bid bond guarantee, Financial guarantee, Advance payment guarantee, Foreign bank guarantee, Deferred payment guarantee). Each category requires a unique type of documentation, which Applica RTA will automatically categorize into the correct basket. Furthermore, Applica RTA will create a subcategory of each basket and extract the required information from the different categories to run a full risk assessment.

Results:

The turnover time to process risk assessments changed dramatically with the implementation of Applica RTA. With all the extracted data from a range of documents located in a centralized repository, it is easy for employees to query the required information on-demand and determine whether or not to give the bank guarantee within seconds.

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