Using Technology to Transform a Large Financial Institution’s Asset Management

FI helped our client develop and implement a solution to fundamentally transform how it performs asset management activities and to increase capacity, quality, and efficiency.

Client: Large Financial Institution

Challenge: In the face of a wide-scale downturn in commercial real estate markets, our client’s Multifamily Asset Management team faced an increase in the number of high-risk loans and properties in its portfolio.

This increase in high-risk volume stressed the organization’s existing asset management infrastructure. Fragmented data sources, heavy reliance on manual processes, and limited management visibility into the activities of individual asset managers constrained its capacity to effectively perform the intensive monitoring and servicing activities required on this segment of the portfolio.

FI Solution: FI helped the financial institution develop and implement a solution—the Streamlined Management Analytical and Reporting Tool (SMART)— to fundamentally transform how it performs asset management activities and to increase capacity, quality, and efficiency.

Leveraging FI’s understanding of our client’s business and industry practices in portfolio management, we worked with them to define high-level application requirements. From these requirements, FI designed a data model that captured the intricacies of the multifamily business while being scalable and flexible to support the demands of the dynamic industry. With high-level requirements and the data model in place, we followed an agile approach to development, iterating with business users on the application’s interface and functionality.

SMART functionality centers on three core elements:

Data. SMART integrates with the client’s various systems to capture, standardize, and report a coherent view of loan and property data. User-configurable business rules highlight potential anomalies.

Analytics. SMART incorporates the institution’s proprietary risk rating methodology to calculate asset-level risk scores; these risk scores drive asset management activities. The application contains various canned reports as well as user-configured reports and robust search functionality.

Activity Management. SMART embeds a workflow engine that assigns, tracks, and reports on asset management activities, including valuations, risk ratings, inspections, REO activities, and financial statement reviews. Workflows help individual asset managers monitor their workloads, and activity reports provide transparency to our client’s management.

Since SMART’s first release, it has become core to the institution’s asset management activities. The client currently retains FI to maintain SMART and develop new releases with additional functionality.

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