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We are looking at 2 things primarily in the report: 1. Peer analysis i.e. what systems do top ‘international’ banks have for credit origination. 2. Globally, what are the top 10 – market coverage-wise - out-of-box vendor solutions available in the ‘credit origination’ domain ( credit application proposal, approval & post-approval – across products).
Hello! Thanks for your question about what systems top international banks have for credit origination and the top ten out of box vendor solutions available for credit origination.
The most useful sources I found to answer your question were Global Finance, topteny.com, and Statista.
The short version is that FIS Global and Sap AG rank as the best vendor solutions for banking and financial software. And, top international banks use a variety of different systems for credit origination depending on their location. Below you will find a deep dive of my findings.
Methodology
Regarding your first inquiry about the top systems that international banks use for credit origination, my colleague and I looked at several banks. In selecting which banks to collect data from we scoured through lists by Statista (measuring them by assets), Global Financials (listing them by internal rankings), and a list acquired from India's largest banks which included more of West Asia.
It was a selection of these banks which we researched and collected origination software information from. We focused on Singapore, Asia, Europe and the US to form a comprehensive perspective.
With regard to your second request on a list of the best out-of-box vendor solutions, we compiled two lists of the top ten banking software companies from two different sources. We felt this was the best reflection of the best software with regard to credit origination.
Here is what we found;
PNB (France)
PNB, an international bank based in France, uses PegaRULES™ Process Commander® platform from Pegasystems Inc. "to improve loan origination and approval workflows within the bank’s large loans processing operation," says the Business Wire. This system was first implemented in 2009.
Royal Bank of Canada
The Royal Bank of Canada partners with Veriday, a private Canadian-based company which handles the bank's mortgage origination system. According to Veriday's website, "Veriday has provided general technical and management consulting support in areas such as... Assisting in the delivery of a mortgage origination program".
Samba Bank
An article published by Banking Tech states, "Pakistan-based Samba Bank has signed for BenchMatrix’s retail loan origination system, RiskNucleus LOS."
The company's software serves the Middle East and Asia with its projects spanning as wide as France and Canada as well. According to the article as well, "Its flagship offering, RiskNucleus, is used by Faysal Bank, Soneri Bank, NIB Bank and Allied Bank in Pakistan; FIMBank in Malta; The Bank of Bahrain and Kuwait (BBK) and Burgan Bank in Kuwait; Algeria Gulf Bank; and BFC in Bahrain."
DBS
DBS a large financial service group in headquartered in Singapore recently (as of 2017) announced a partnership with Xero "to transform the way SMEs in Singapore manage their financials and access capital," according to the DBS website. " The integration aims to remove much of the administrative burden for SMEs when they apply for bank loans."
Xero is an online accounting software that aids small businesses and advisers.
UOB
theedgesingapore.com quotes Susan Hwee who is the head of group technology and operations at UOB; "We already had origination systems... however it used to be a traditional origination system. Today, it is fully automated and credit can be granted faster... resulting in increased productivity." UOB is "partnering venture capital funds to engage startups". This serves as an indication of how UOB is using origination systems in their context.
OCBC
According to OCBC's corporate website, the bank has set up "a new financial technology (Fintech) unit called ‘The Open Vault at OCBC’ meant "to bring to market relevant financial products and services, and to enhance banking processes."
This puts a name to the software which OCBC uses but does not necessarily pertain directly to 'credit origination'.
US Banks
Custom Credit Systems is a Texas based company whose software for loan origination was used by "Wells Fargo, Bank of America, U.S. Bank, Comerica, Fifth Third Bank, Washington Federal and Huntington Bank," according to the American Banker. The software is used by a total of 24 banks. According to that same article, the company has been acquired by Misys, a British financial software provider.
Union Bank
Union Bank joined with Lending Club and use their platform for credit origination. Under their agreement "Union Bank will purchase personal loans through the Lending Club platform, and the two companies will work together to create new credit products to be made available to both companies’ customer base," According to lendingclub.com.
Lending club is a platform that "utilizes technology and innovation to reduce costs and offer borrowers better rates and investors better returns," read the company website, and this is the kind of service they offer to union bank.
With regard to your second request on a list of the best out-of-box vendor solutions, we compiled two lists of the top ten banking software companies from two different sources.
Top Ten Banking Software Companies
10. Polaris Financial Technology Limited
9. Silverlake Axis
8. Misys
7. Oracle Financial Services Software
6. TEMENOS
5. Fiserv
4. Fidelity National Information Services (FNIS)
3. Infosys Technologies
2.Tata Consultancy Services Financial Solutions (TCS FS)
1. SAP AG
Top Ten Banking and Financial Services Software Vendors
10. ACI Worldwide, Inc.
9. Temenos Group AG
8. Sales Force
7. Digital Insight, an NCR Company
6. SS&C Technologies
5. Oracle
4. SAP
3. Microsoft
2. Fiserv
1. FIS Global
Conclusion
To wrap it up, FIS Global and Sap AG rank as the best vendor solutions for banking and financial software. And, top international banks use a variety of different systems for credit origination.
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