Analyzing diverse valuation reports for risk-weighted asset capital relief

A leading UK-headquartered retail and commercial bank use Eigen to extract and analyze data contained in valuation reports so they can centralize information and apply for capital relief.

The challenge

The bank needed to develop the capability to analyze the composition of real estate collateral supporting its SME lending portfolio. Although collateral went through a robust assessment as part of the lending approval process, very few details were captured in a structured format.

For each real estate asset pledged as collateral, the bank typically had a valuation report provided by a third-party surveyor. These valuation reports varied significantly in terms of format, but largely contained the key information that the bank needed to analyze.

By extracting the information within the valuation reports and organizing it in a structured format, the bank could analyze the data in order to obtain risk-weighted asset (RWA) capital relief.

The solution

The bank was able to automate the extraction of data including the type of property, location, rental income, property status, and multiple variants of market value under different assumptions.

The bank is now able to achieve better valuation of the capital they have tied to their loans, driving RWA relief.

The results

Eigen was chosen because of its ability to process a document type that is highly variable and its ability to extract custom data points as defined by the bank.

Eigen was also able to seamlessly integrate with delivery partners and other solutions within the bank.