Finastra and RMA partner to improve commercial banking risk rating frameworks

By Pavithra R

The Risk Management Association (RMA), a not-for-profit, member-driven professional association and Finastra has announced entering into a partnership to form a strategic initiative to advance commercial banking risk rating frameworks for US financial institutions.

Through the collaboration, RMA Dual Risk Rating scorecards will be available through and fully integrated with Finastra’s Fusion CreditQuest commercial lending platform.

“Given the role of small and mid-sized enterprises in upholding our economy, it is more critical than ever to ensure SMEs have access to lending – and that the commercial banks serving them implement RMA Dual Risk Rating scorecards to effectively assess their borrowing ability. We are proud to provide the financial services industry with a cost-effective tool to improve commercial loan risk rating consistency and objectivity, and excited to offer Fusion CreditQuest clients access to our expert judgment-based risk rating scorecards,” said  RMA President and CEO Nancy Foster.

Fusion CreditQuest is an end-to-end commercial loan origination solution that streamlines portfolio management, underwriting, and reporting. Customers leveraging RMA’s flexible Dual Risk Rating software will experience full integration of RMA’s scorecards with the Fusion CreditQuest platform.

“Today many financial institutions use a single rating matrix to analyze the creditworthiness and ability of a borrower to repay a loan. Regulatory guidance suggests using both objective and subjective factors to assess the risk posed by a borrower’s expected performance as well as the transaction structure. By integrating RMA Dual Risk Rating scorecards into Fusion CreditQuest, we are bringing our clients a superior way to analyze risk and assure a favorable outcome,” said Vonda George, Director, Lending Territory Head, Finastra.

Founded in 2017, Finastra is building an open platform that accelerates collaboration and innovation in financial services, creating better experiences for people, businesses and communities.