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Tag: financial planning course

How do financial institutions focus on strengthening the quality of loan portfolio while mitigating credit risk underwriting?

Posted on by Imarticus Learning

With the financial market changing and evolving with trends, the credit market has changed as well. The reason being more & more people are seeking credit from the lending market.

This increased graph of credit-sourcing has created an environment where competition among lenders has reached a fever pitch, with banks and other financial institutions fighting tooth and nail for market share.

But if you’re looking to get ahead of the pack, it pays to think outside the box. By developing a loan portfolio, you may have to include not just high-interest installment loans but also low-interest refinancing options.

In this blog post, we’ll take a deep dive into the world of portfolio analysis and credit risk.

What Is Credit Risk Underwriting? 

Credit risk underwriting is the process of building a credit profile for an individual to determine their creditworthiness. It can be considered as “due diligence” between lenders and potential borrowers.

Under this process, customer data such as employment history, income stability, and general suitability is reviewed to determine if individuals pose a default risk. However, it’s important to note that every lender has its criteria that individuals must meet to be accepted into an agreement.

Effective Ways financial institutions may use to strengthen the loan portfolio: 

A strong credit culture is an essential ingredient to the success of any bank. A loan portfolio with high-quality, low-risk loans provides stability for customers looking to invest in local businesses.

1. Cultivate a relationship with service providers: 

Learning about new lending opportunities and sharing them with your potential borrowers helps strengthen your relationship with accountants, attorneys, insurance agents, and other vendors.

Creating a good impact will help you on top of the mind of professionals, and whenever someone needs financial assistance, they can refer to you.

 2. Get regular updates from the line lenders: 

Managers are constantly on the lookout for updates from line lenders. They need to know what’s in their pipeline, how prospects are progressing, and other potential financing opportunities that might arise at any given time.

3. Update the prospects detail regularly: 

The prospect database should remain accurate and up-to-date. Contacting the right person will save your time, which means that their contact information becomes invaluable when it comes down to deciding who should receive your message most efficiently!

4. Review customer’s financial information: 

Expanding your reach by using customers’ financial data can help to identify their area of need. Following this, you may call the prospect with a solution that meets all those requirements or at least narrows them down for more focused marketing efforts.

Get More Insights into Loan Portfolio with Imarticus Learning: 

Imarticus Learning offers an in-depth understanding of credit risk and underwriting through their 145+ credit analyst course.

The credit risk analyst course mainly covers credit underwriting, credit administration, legal and regulatory requirement, and the impact of new-age technology.

 Our course USPs: 

Top 5 Hard Skills Required to Become a Merger and Acquisitions Senior Analyst

Posted on by Imarticus Learning

Mergers and Acquisitions are among the most important events in the corporate sector. And, obviously, with such an important event comes a position of equal importance. Mergers and Acquisitions analysis is a high demanding job that leaves no place for error. And, because as long as the corporate sector as a whole remains, it is a surety that mergers and acquisitions will keep on happening, it is also a guarantee that a mergers and acquisitions analyst will be needed no matter the time.

So, if you want to pursue a fruitful career in this sector and give your future the flourish it deserves, then the best option for you would be to do a proper merger and acquisition analyst course, chartered financial analyst course, or SWOT analysis course.  

chartered analyst courseA lot of institutions offer a solid merger and acquisition analyst course in India. Such an institute is Imarticus Learnings.

It not only provides a compact financial analysis prodegree but also comes with placement opportunities that give you the chance to land your dream job right from the get-go.

However, there are a few skills that M&A analysts must possess. Here, we are going to talk about them.

Finance Modelling and Valuation Techniques

The job of M&A analysts is to assess prospective companies in the field to acquire or merge with. They need to evaluate both profits and losses of a merger for all the parties included. So, obviously, they need high-level skills of financial modeling course helps them chalk out the goals and the means to achieve them.

SWOT analysis courseAnother important skill analysts should have is to be able to put the correct value to each aspect of a merger. They need to determine as precisely as possible the appropriate premiums needed for acquisition.

This is why they must always stay ahead of industrial knowledge and analyze all the recent value reports of events.

This is one of the reasons why students with a degree in chartered financial analyst course or SWOT analysis course get high preference in this field.

Flawless Pitch Books

Another skill analysts must have is making flawless pitch books. It is important to present all the information and stats regarding the merger to all the parties involved appealingly. 

Accounting Prowess and Industrial Knowledge

As these deals often tend to cost millions, the analysts must have accounting prowess so that they can keep a check on all the transactions made. Analysts also need core industrial knowledge as all mergers and acquisitions made are very industry-specific.

Staying up to date with International Corporate Scenarios

A good analyst should always stay up to date with international corporate scenarios. As mergers are a common event for businesses both local and global, a deep understanding of the function and process goes a long way to help clients.

In-depth Knowledge of Industrial Law

This is possibly one of the most important skills needed in an analyst. A good analyst should be acquainted with all the laws that need to be regarded during a merger and acquisitions process as any error can lead to serious legal trouble for everyone involved.

Conclusion

A merger and acquisitions analyst has no room for error and should always be at least two steps ahead of everyone to guide them properly. And, the only way to do that is by learning the process completely. Imarticus Learnings brings to you a great opportunity with its financial analysis prodegree that will help you get the boost you need in your career.