Lloyds TSB has implemented software from UK business intelligence vendor SAS to automate risk management processes and to comply with Basel II capital accord requirements.
Lloyds TSB has rolled out Risk Management for Banking to automate manual processes including risk reporting, performance monitoring and credit scoring. The software is also being used to manage the bank's data warehouse.
SAS says the system enables analyses of customers' ability to default and this has already resulted in reductions in the credit risk capital charge for Lloyds TSB of up to 20 per cent for unsecured loans and up to 50 per cent for mortgages.
In addition, improved data capture at the point of sale enables the bank to monitor the performance of scorecards much faster.
Shahram Sharifi, credit risk director at Lloyds TSB, says: "By identifying the business benefits of risk management at an early stage, Lloyds TSB will enjoy a competitive advantage in the lead up to the Basel II deadline."