Explore IWB's Credit & Risk Management Consulting Services
Investors Without Borders’ Mission
is to help financial
institutions in emerging markets to grow and strengthen their portfolio
of Small and Medium-sized Enterprises. This means achieving more
capital access for SMEs by making it more profitable for FIs to serve
advocates the use of risk management and technology to enhance credit practices, portfolio strength, client relationships, and product development.
involves two key components that focus on innovation and cost efficiency.
- Expert-sourcing: IWB builds committees of expert finance professionals, selectively chosen from a diversity of regions and areas of expertise. The committees provide a range of independent perspectives, which mixed with the on-site IWB reviews, enables fresh insights and innovative solutions not bounded by the paradigm of any particular institution, country, or philosophy, yet customized to each FI’s unique circumstances.
- Iterative design: The IWB process starts with figuring out the most important questions to be addressed before delving into solutions. We do rounds of reviews, feedback, and pilots. Our iterative process allows us to help an FI to identify needs and test mechanisms before making big decisions to enact changes or commit resources.
Basic Consulting Structure
- Needs Assessment
- IWB embedded on site – minimum 1-week
- Interviews with key management, credit committee, portfolio managers, and loan officers
- Site visits and observations of client-facing processes
- Review of relevant documents, systems, and reports. For example, portfolio statistics, sample credit reports, underwriting guidelines, relevant software, etc.
- Expert-Sourcing Process
- The expert committee of finance and risk professionals receives training specific to the client FI (challenges, goals, current status, etc) and their working environment.
- Committee reviews a sample of credit reports, as well as supporting documents and portfolio statistics where applicable.
- Committee generates individual and group feedback that is processed into recommendations for the client FI.
Project Focus Areas
One or more of the follow focus areas can be incorporated into any project. Review iterations and follow-up projects delve more deeply into any area chosen by the client FI as a key priority.
- Standardization & Quality Control – Identify and develop mechanisms to make the credit process quicker, more accurate, and more consistent. Are Loan Officers spending time hunting clients down for follow-up information or entering data? How can the communication between front line and management be improved?
- Technology & Automation – Explore how to turn burdensome data into an asset and a driver of strategic direction. Allow your staff to focus on clients and analysis not data entry and paperwork. Customize and simplify your intake and analysis – work to find the quickest way to identify the most relevant information.
- Time-study analysis – Consider the 80:20 Rule. Which clients, processes, and problems take the bulk of your time and energy? Which products, staff, and processes bring you the most value? Optimize.
- Customer Lifetime Value Analysis – Is the client with collateral really a better deal than the client with a great business model, but few assets? Explore how to grow your portfolio and expand into “riskier” market segments by balancing your portfolio and tracking performance.
- Intake, Metrics, and Underwriting – Identify the most powerful and readily verifiable data and evaluation tools. Develop and test metrics that highlight critical value and red flags that lead you to what questions to ask and what to ignore.
- Scorecard development – Develop a customized scorecard system to help standardize and potentially automate aspects of the credit review process. Streamline communication with management, work toward a system of delegated authority, reduce training time, perform data analysis for improving underwriting, and track performance in a way that can be communicated to external stakeholders.
Flexible fee structures
- Real-time credit review – Benefit from the insight of IWB’s committees of independent risk professionals providing insights on a sampling of credit applicants in parallel with your staff before the credit decision is made.
- Sliding scale based on size of institution & customization based on magnitude of project
Once a client, always a client
- Commitment fees combined with project completion fees to reduce upfront costs and mitigate risk of trying a new service.
IWB focuses on building a relationship – our consulting is not a service that ends with a one-time report. We are dedicated to the long-term sustainability of our clients and from the first review will begin assembling potential resources and referrals.
Our recommendations will not be confined to additional IWB services, but will highlight internal efforts, third-party services, and any resources for support within the IWB network now and into the future.
- All clients: Ongoing referrals to service providers, supports, and resources, such as providers of financial guarantees, prospective investors, and innovative products and technology.
- Follow-up consultation, review, training, or implementation projects at preferred pricing.
- Assistance in connecting with or structuring projects with third-party service providers for identified needs such as training, technology systems, etc. (All referrals are free, unless an investment transaction is completed).