03 / 2014
The Financial Insights Innovation Awards, which are organized by IDC Financial Insights, recognize financial services innovations in the Asia-Pacific region. This year, the award in the risk management category went to PT Bank Internasional Indonesia Tbk (BII), one of the largest credit institutions in Indonesia, a country with a population of some 240 million people. BII won with its centralized risk rating system, a solution that is based on the Credit Risk Rating Platform from Bosch Software Innovations. With this award, the jury recognized outstanding achievements in risk management and technologies that have demonstrably boosted performance.
Bosch Software Innovations is also delighted about the award for BII: “We congratulate BII and are proud that our technology was able to contribute to their success at the Financial Insights Innovation Awards,” said Thomas Jakob, Managing Director of Bosch Software Innovations with responsibility for the Asia-Pacific region.
Significant increases in efficiency for rating systems
The centralized risk rating system used by BII enables the bank to create rating models that meet the Basel II IRB standard, resulting in impressive efficiency gains: “By using the system, we managed to improve the throughput time of rating decisions by 300 percent,” explains Leonardi Widjaja, who heads the Risk Management department in his role as Senior Vice President. “In some areas, the amount of work involved has gone down by as much as fifty percent.”
Graphical modeling of rating models a key feature
What the BII decision-makers liked most of all about the Bosch software was the ability to graphically implement the rating models, making it easy to adapt them quickly and flexibly to changed circumstances – and with no programming skills required. In addition, they were impressed by the comprehensive simulation options that now allow the bank to forecast the effects of changes in market-specific parameters on its credit portfolio.