WebEquity Enhances Tool for Stress Testing Complex Credits and Assessing Risk Across Loan Portfolios

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Advancements further equip lenders to meet examiners’ heightened expectations for data transparency, accountability and proactive risk management

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WebEquity Solutions™ LLC (WebEquity), announced today that it has enhanced its Risk Management Dashboard tool, the industry’s first lending solution for pre- and post-approval loan stress testing on a single technology platform. The WebEquity Risk Management Dashboard features significantly expanded reporting and analysis capabilities that help lenders to uniformly identify and stress what factors will most impact the risk make up of their complex credit portfolios. By providing institutions with even greater visibility into their portfolios and the ability to easily isolate the loans that are in potential trouble, the tool gives lenders valuable insight they need to take proactive steps to manage and mitigate risk through the life of their loans.

Specifically designed for C-level management and board members, the WebEquity Risk Management Dashboard is integrated with the Company’s on-demand credit analysis and loan origination solution. With this single system of record, lenders can obtain a consolidated view of their portfolio, assess risk concentrations, perform sensitivity analysis and stress test their commercial & industrial (C&I), commercial real estate (CRE), agricultural (Ag), construction and small business loans.

“The new enhancements to the Risk Management Dashboard have made our most critical board-level portfolio reporting and analysis as simple as a one click process,” Craig Merrihew, AVP, Credit Analyst, McCook National Bank. “The tool’s flexible reporting capabilities are particularly valuable during our renewal season when we analyze key factors by loan officer such as pricing, risk ratings and loan volume. This information is imperative in assessing how individuals impact our productivity, profitability and overall portfolio risk.”

The WebEquity Risk Management Dashboard features enhancements to portfolio reporting and analysis in the following key areas.

  • Stress Testing. WebEquity has considerably expanded the number of factors that lenders can use to drive their risk assessments—adding hundreds of options for stress testing that enable a much more granular level of analysis. Lenders can now shock loans by risk ratings, repayment capacity, loan to collateral and by more than 17 different financial ratios. In addition, there are a multitude of new options for stressing a borrower’s income statement or balance sheet accounts (i.e. rents, operating expenses, receivables, etc.).
  • Sensitivity Analysis. Advanced capabilities give institutions greater flexibility in their sensitivity analyses. They now have the ability to stress segments of individual loans, specific segments of their portfolios and their entire portfolios to determine the percentage change before debt servicing is depleted. Lenders can run sensitivity tests based on their unique business focus – factoring in “what if” variables that are specific to their institution and type of borrowers – and input they receive from examiners.
  • Flexible Configuration Capabilities. WebEquity has also made usability and efficiency enhancements that enable lenders to adapt risk analysis to their institutions’ unique business needs. The Dashboard enables lenders to specify how they want to analyze their portfolios and identify what segments and factors they need to monitor on a regular basis. They now have a greater depth of flexibility around how to analyze loan data, all facilitated by easy drop down options that are intuitive to end users. These new capabilities allow lenders to focus on the loans they really need to track closely based on specific criteria, save that criteria and create watch lists for these most sensitive areas of their portfolio (i.e. loan purpose, risk concentration and bank demographics).

“It is crucial that lenders have full visibility into the risk that lies across their loan portfolios – at macro and micro levels – to prudently manage that risk and meet examiners’ heightened expectations of data transparency,” said Doug McGregor, CEO, WebEquity Solutions. “The enhancements we’ve made to the Risk Management Dashboard are giving lenders an unprecedented ability to stress test loans, from origination through payoff, and take a proactive approach to credit risk management that will help them drive more profitable loan businesses.”

About WebEquity Solutions

WebEquity™ is the proven leader in on-demand lending software. More than 650 financial institutions and 10,000 lending professionals use WebEquity to automate and streamline their lending process and reduce operational costs, while making more uniform and profitable credit decisions. The company offers financial institutions a distinct advantage with a single solution that works for all loan types, an on-demand model that provides centralized, anywhere access, and the flexibility to configure the system so it fits their lending practices. WebEquity serves institutions in the U.S., Canada and Australia. For more information call 800-264-0787 or visit webequitysolutions.com.

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Dave McEvoy
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