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Credit Risk Management Software Spending to Grow 9% [New Vision (Uganda)](New Vision (Uganda) Via Acquire Media NewsEdge) The global financial industry spending on software and IT services for credit risk management is expected to reach $6.57bn this year, accounting 17.9% of the overall investments on all risk management software and services spending. The latest 'IDC MarketScape: Worldwide Credit Risk Analytics Solution Vendor Assessment 2014' report added that this industry's credit risk investments would grow at a 3-year compound annual growth rate (CAGR) of 9% through 2018. Investments are mainly targeted at building enterprise analytics across credit product, portfolio, and regulatory capital functions; create efficient credit operations and underwriting methodologies; enhance credit capacity and debt collection potential; and support stress testingand capital reporting. Furthermore, money will also be spent on delivering more granular client profitability assessment; and improving decision making in areas including pricing and capital allocation. IDC Financial Insights Worldwide Risk Management Strategies team members Li-May Chew and Michael Versace said in a joint statement: Credit risk is the largest, most elementary risk faced by the international financial industry. Leading financial institutions have made measurable headway in laying the foundation for a robust credit risk management system following lessons learned from the global financial crisis. There has been huge rise in investment in these technologies by market leaders in banking as a first step in core banking transformation; to improve product pricing; for proactive credit exposure assessments, and aligned bank relationships more closely with customers' credit desire. COPYRIGHT (c) 2014 NEWVISION. ALL RIGHTS RESERVED. Provided by SyndiGate Media Inc. (Syndigate.info). |