Project Background:
US banks used to monitor their loan books using historical financial systems. The process was largely manual, meaning clients used to prepare reports for all borrowers on a scheduled basis. There was no way to identify risk early in the book using a forward-looking view.
Proposal:
To develop a new risk management product using forward-looking scenarios to calculate risk scores for each borrower and consequently assign ratings.
My role:
I was involved in this project from its inception. My responsibilities included doing discovery work, understanding customer pain points, understanding our own strengths and vision, and proposing a viable business opportunity. We developed an MVP, tested it with our reference clients, took their feedback, and improved our product further.
Challenges:
It wasn't easy to align market requirements with OakNorth's strengths around credit modeling. It was also hard to convince clients to change their working methods and adopt our solution.
Outcome:
The trial was successful. Portfolio managers could prioritize high-risk borrowers for review, while the low-risk cases could undergo a light-touch check. Based on feedback, we made many enhancements to the product over the years.
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Delivered a risk management and analysis tool to US banking clients, generating an annual recurring revenue (ARR) exceeding £3 million)
