Standard Bank of South Africa is rolling out collateral management technology from Rockall Technologies across its corporate banking operations.
The bank is deploying Rockall's Systematic Tracking of Collateral management system (Stoc), initially in South Africa before rolling it out to its operations in CIB International and finally the rest of Africa.
Stoc is a software application used to automate the management, tracking and valuation of collateral. Collateral and loan information are imported, analysed for eligibility and LTV based on predetermined business policies, valued via multiple market sources, and haircuts are applied.
Rockall says the technology helps banks value collateral to minimise risk involved in lending, which has become a particular problem in the housing market recently.
Clive Laburn, project executive, Standard Bank of South Africa, says: ""If the ship ever sinks, it's important to know if you are still carrying any cargo and whether this is buoyant or not...A thorough understanding of this collateral and its value in various jurisdictions is all the more important given our emerging market focus."