IBM targets bank CFOs with credit, risk analytics

IBM's credit risk suite pulls in various data points to provide one view of the customers and credit exposures.

IBM on Wednesday rolled out applications designed to meld credit risks, big data and analytics tools for financial institution chief financial officers, who need to steer clear of disasters.

Specifically, IBM launched an integrated credit lifecycle management suite designed to boost profits, manage risk and meet various regulations. The risk management suite, dubbed an IBM Signature Solution, aims to give CFOs a view into credit risk from every corner of a company.

Rory McClure, associate partner of risk solutions at IBM's global business services unit, said the credit risk management suite is built from various parts such as Cognos, IBM's business process management software and analytics tools via the 2011 Algorithmics acquisition.

"Historically, IBM has sold the parts to build a house. Now we're selling the house and integrated software that's configurable not with software development but changes," said McClure. "Think of us as the SAP for bank credit."

IBM has a series of analytics suites for various roles in a company. IBM Signature solutions cover customer interaction, financial performance and fraud detection. The applications are typically rolled out via IBM's analytics services.

CFOs wear many hats. For instance, CFOs need to maximize profits and revenue, engineer business models and avoid black swan events. IBM argues that many financial groups are piecing together disparate data from silos and spreadsheets flying around a company.

Specifically, IBM's credit risk software pulls in various data points to provide one view of the customers and credit exposures. Credit data is imported from multiple sources to manage risk related to customers and counterparties. The software has the ability to monitor data by the minute and analyze feeds in real time.

The core functions of the suite have been deployed in about a dozen banks, according to IBM.