This is the first of two reports that update our research into technology solutions for credit risk management. In our previous credit risk report1, we highlighted the continuing emergence of a new credit modeling and analytics environment in credit risk (particularly in the banking book). This is a rapidly changing and diverse landscape, shaped by evolving regulations, accounting standards, changing market structures and technology.
One year on, we return to the topic afresh to consider how the market is continuing to evolve, and how financial institutions (FIs) and vendors are addressing some of the issues we highlighted. In this report, a concise update of the previous one, we examine the vendor landscape for technology solutions that address the new Credit Risk 2.0 environment, outlining the reasoning behind our scoring, and the criteria we applied. It will be followed by a more expansive report that will drill into and expand on the major themes outlined here. The broader report will also look more deeply at many of the specific credit issues on the trading book, as well as credit risk challenges in wealth management.
This report uses Chartis’ RiskTech Quadrant® to explain the structure of the market. The RiskTech Quadrant® uses a comprehensive methodology of in-depth independent research and a clear scoring system to explain which technology solutions meet an organization’s needs. The RiskTech Quadrant® does not simply describe one technology solution as the best risk-management solution; it has a sophisticated ranking methodology to explain which solutions would be best for buyers, depending on their implementation strategies.
To reflect the varying maturity and focus of credit risk solutions across the landscape, we have developed two quadrants – one each for the trading and banking books – covering the following providers of credit risk solutions: Abrigo, AxiomSL, Bloomberg, Calypso, Confluence, CoStar Risk Analytics, Finastra, FIS, ICE, IHS Markit, Infosys, InfrasoftTech, ION, Jack Henry & Associates, Kamakura, Loxon, LSEG, MIAC, Moody’s Analytics, MSCI, Murex, Numerix, Oracle, Prometeia, Qontigo, Quantifi, Quaternion, RiskSpan, SAS, SS&C, TCS, Thetica Systems, TransUnion, Trepp, Vertiv, Vichara, Wipro, Wolters Kluwer, zeb, and ZM Financial Systems2.
We aim to provide as comprehensive a view of the vendor landscape as possible within the context of our research. Note, however, that not all vendors we approached responded to our requests for briefings, and some declined to participate in this research.
2 Note that references to specific vendors within the text of this report do not constitute endorsements of their products by Chartis.