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Tag: finance and banking online courses

Smarter Credit risk underwriting with Bank data

Posted on by Imarticus Learning

The introduction of AI tools has caused a significant change in all industries. In the banking and finance sector, AI and ML have proven to be highly reliable support tools. It has lessened the workers’ grunt workload and in turn, has let them focus on the finer aspects of their profession that AI is still unable to perform. It is the same when it comes to credit risk assessment.

With the help of AI tools, the predictability of the underwriting risks is a lot closer to the actual numbers. A lot of institutions in India provide good credit risk underwriting courses. A credit risk analyst course is the only way if you are thinking about pursuing a career in this profession. Imarticus Learning as always has come forward with a marvelous credit risk analyst certification course that will give you the necessary boost for your career.

In this article, we are going to talk about what credit risk underwriting is, how AI tools help to manage it better, and some other things that should be kept in mind.

What is credit risk underwriting?

There is a chance when a financer offers a loan, that the interest, as well as the capital amount, might not be repaid. It negatively impacts the underwriter or financer financially. Predicting the lapse in the repayment of the contractual amount and the ensuing loss faced by the financer or underwriter is what credit risk assessment is about. And underwriting risks are what the financer or underwriter has to bear while offering contractual loans. A credit risk analyst course helps you hone the necessary skills required for assessing such situations.

Benefits of AI tools

The application of AI tools in managing credit risk underwriting is still blossoming. However, many companies have already put themselves one step ahead by comparing and accepting the benefits brought forth by AI tools. The major benefits of this are:

  • Older systems are unable to keep track of the massive amount of data and decipher the finer aspects of a contract which could impact the credit risk negatively. In this scenario, the application of AI and ML tools to collect bank data increases the accuracy of the model significantly
  • AI tools are excellent at detecting patterns swiftly even through big data. In this way, it is possible to detect potential risks to the contractual agreement.

Key points to keep in mind

There are a few things, though, that should be kept in mind when it comes to credit risk underwriting, such as:

  • The process should be supervised regularly as financial companies are now supposed to be a lot more transparent and auditable. 
  • Adjustments should be made in the framework development of the risk management process, as an unpredictable model could cause more harm than benefits.
  • A lot more focus should be kept on the standardization, accuracy, and validity of data processing. As these tools are extremely data-sensitive, the whole process might fall short without a proper flow of information.

Conclusion

With the increase of AI tools in all corporate sectors, the need for AI smart professionals has increased. Especially so for a sector as data-sensitive as finance. This is high time to look for good credit risk underwriting courses. Check out Imarticus Learning’s credit risk analyst certification course.

credit risk analyst courses

If you are thinking of pursuing a career in this field. It is undoubtedly one of the best institutions out there, and it will help elevate your skills to the next level.

The Crypto Takeover: Are Crypto asset markets moving too fast for clear regulation?

Posted on by Imarticus Learning

Cryptocurrency is a type of payment that may be swapped for products and services online. A lot of firms have built their own currencies, known as tokens. They can be swapped for the goods or services offered by the firm. Crypto assets are digital assets that use cryptography techniques to generate a financial transaction medium of exchange. Crypto assets include cryptocurrencies, utility coins, and security tokens. To have access to the good or service, you must first swap actual dollars for cryptocurrency.

Cryptocurrencies use blockchain technology to function. Blockchain is a distributed technology that manages and records transactions across multiple computers. This technology’s security is what distinguishes it. Financial modeling courses on cryptocurrency, such as a chartered financial analyst course will help one gain deeper insights into it.

Cryptoassets mark a profound transformation in financial markets and have gained prominence in recent years. Cryptoasset technical innovations have come a long way and have the potential to upset the financial system. Central banking institutions and other banking institutions can help shape this landscape.

This worldwide phenomenon is causing uncertainty in numerous ways, including how individual crypto assets differ from one another and the role of the major participants in the crypto-asset ecosystem. With the hype surrounding bitcoin, altcoins, cryptocurrencies, and tokens, an entirely new financial environment has emerged.

Why is regulation required?

Regulation is one of the most critical variables influencing the price of bitcoin. Every time a government cracked the policy whip, the cryptocurrency’s rise was halted, with countries taking varied approaches to bitcoin regulation.

AML standards have been improved as authorities and financial institutions get a better knowledge of these illicit operations. However, these adjustments have been mainly reactive and trial-and-error in nature.

To resolve these concerns of the rapidly expanding blockchain ecosystem, the European Union has begun implementing more strict financial laws that strengthen the regulatory structure and improve authorization models. Many member states currently regulate crypto assets on an individual basis, with Germany leading the way as the first to do so.

These individual regulations outline the conditions for acquiring and keeping a financial license from the government, clearly prescribing the road for crypto firms. Compliance, by definition, improves investor confidence and safeguards them.

Different governments have taken various ways to regulate cryptocurrencies. Digital currencies have been banned in Vietnam, Bangladesh, Kyrgyzstan, Bolivia, Ecuador, etc.  Russia and China are on the threshold of outlawing them.

Cryptocurrencies are unregulated in India, the United Kingdom, and Brazil. However, these are regulated and lawful in nations such as France, Finland, and Germany. Individuals are permitted to use bitcoin in their transactions in China, but organizations and banks are not permitted to do so. It is prohibited in Iceland to buy or sell bitcoins, but they can be produced.

There is currently no distinct law in India dealing with cryptocurrency concerns and it is unregulated. As a result, all pertinent departments and law enforcement agencies, such as the Reserve Bank of India (RBI), Enforcement Directorate (ED), and income tax authorities take appropriate measures in accordance with current laws. Similarly, the Indian Penal Code is enforced by the police and the courts. In addition, there are a number of other vulnerabilities and threats involved with bitcoin.

Conclusion:

It is a pressing need to regulate cryptocurrencies as well as recognize them as legal cash, with adequate safety and surveillance measures in place. This is essential in third-world countries where the majority of citizens are not technologically or financially competent. This is largely attributable to the fact that India’s economy only opened up a little more than a quarter-century ago.

Financial modeling courses such as a chartered financial analyst course might be the right boost for a flourishing career in this field.