Menerva Software has released TRaiCE: An AI-based “early warning” system for business lenders to address flaws in Portfolio Monitoring. By combining a bank’s internal data with bureau and alternative data sources, TRaiCE’s proprietary, self-learning algorithm accurately predicts risk and suggests timely interventions. Rather than replacing what currently exists, TRaiCE augments lenders’ data, allowing for aggregated past trend analysis and prediction for future losses.
“With the current global economic crisis, TRaiCE’s risk mitigation fills a crucial gap in many financial institutions’ currently inefficient approach to portfolio management,” said Geetha Ramaswamy, Co-Founder and CTO of Menerva Software. “This has long-term implications for banks lacking an accurate system to predict default risk, as small and medium-sized businesses will be unable to make loan payments.”
TRaiCE’s augmented intelligence system synthesizes a bank’s internal and credit bureau data with 3rd party sources such as newsfeeds and social media in order to proactively calculate the probability of a client’s loan default and suggest immediate interventions for highest-risk clients. It also performs future analytical exercises like allowance calculations or covenant monitoring. These insights allow lenders to take consistent, explainable decisions in compliance with its regulatory environment.
“TRaiCE’s early data from beta users is promising,” added Ramaswamy. “Overall, in reviewing less than 10% of a bank’s customers, TRaiCE is able to demonstrate how over half of that bank’s future losses could be mitigated.”
Far from a risk mitigation software, TRaiCE highlights pre-approval opportunities, like automatic credit line renewals, for clients in good standing. These data-driven insights not only save lenders time and budget on documentation-gathering and underwriting, but also create income opportunities and reduce client attrition.
All banking institutions can test drive TRaiCE for a free 90-day trial. Schedule a demo with Menerva at www.menervasoftware.com.
ABOUT MENERVA SOFTWARE
Menerva Software helps fintech companies with Big Data obtain powerful, data-driven business insights with custom software solutions that automate, organize, and centralize data at a glance. Their data experts handle the tech and analytics, so business owners can focus on doing what they do best. Connect with us at www.menervasoftware.com.
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