Coolprofs

Clients

KEM : life cycle management for commercial credit operations

Arjen Jensema Vice President Risk Management Program Lending MKB, ABN AMRO Bank:

“With other companies we get what we order, with COOLProfs we get what we meant to order.” ”

Assignment

Extend the functionality of the K(C)redit Expert Model (KEM) system with the capability of revising loans and provide support to borrowers if the legal status of their company changes.

Motivation

COOLProfs has been involved with KEM right from the initial building of the system in 2004, which was developed on a results-based contract (fixed date/price/quality). KEM ensures that commercial lending operations run efficiently, with risk management and customer satisfaction being of foremost importance.
The success of KEM within the ABN AMRO Bank has already led to expanding the system with loans to farmers. The addition of loan revision and borrower mutation will improve processes even further.

Approach

As a result of positive feedback on the earlier KEM project, COOLProfs was asked to expand the system.
"They know better than anyone else how the Gen development environment works and what the consequences of modifications will be. Both technically and for the business. The analytical and advisory role of COOLProfs is unique", according to Jensema.

By working with prototypes the development proceeded swiftly. Each week the prototype and the requirements were discussed. The end-users were fully involved in establishing the set of requirements. Because of this involvement there was widespread support for the system in the organisation. The close cooperation between COOLProfs and the business analysts of ABN Amro Bank was another key factor to its success.

This expansion of KEM has also been achieved on the basis of a ‘fixed price, fixed date, fixed quality' contract. "Commitments regarding deadlines and quality were all met, and for a fixed price. You might think that would lead to less flexibility but that didn't happen, on the contrary", said Jensema.

Results

• In addition to handling loan applications, the system can now handle the loan management process.

• By using KEM, the process is now Basel II compliant.

• The productivity of employees has increased due to the easy-to-use automated administration.

• The satisfaction of users is very high, in part due to the intuitive nature of the KEM system.