Early Warning Signals System

Manage your bank's assets against impact of negative developments and take control of non-performing assets
A comprehensive and well-structured Early Warning Signal System assists the top-level management to predict possible defaults from borrowers that may adversely affect the institution. These systems can prevent manual omissions and other oversights, thereby securing the bank’s valued assets. CrossFraud® Early Warning Signals System are specialised tools, built using a set of parameters and processes that identify such probable risks at an early stage.

Statistics suggest that monitoring of issued loans and borrowers, effectively and on time, can reduce the possibility of loan-losses by almost 10-20%. Banks who use full-fledged early warning signals and have sound credit monitoring policies in place have better regulation of cash, healthier loan portfolio, good capital yield and high Return on Equity. Read on below to know more.

How it helps banks

A breach of contract, either willful or unavoidable, can be prevented by detecting some early warning signals. Often, these signals come from a single banking system.

As the government and regulatory bodies have already been pressurising banks to bring down the NPA levels, an all-inclusive NPA management solution having Early Warning Signals can be their lifesaver. It not only helps in dealing with the existing NPAs but also prevents future loans to become delinquent by embracing numerous precautionary measures.

The suspicion is strengthened by signals from various associated systems. Hence, it is vital to collect and assimilate data from multiple sources to detect a breach well in advance and with higher confidence.

The CrossFraud® Early Warning Signals System System monitors events from the initiation of a contract to the closure of finance given to a customer.

Existing Customer Exposure

After starting the financing of a customer, the bank has to monitor the asset closely to detect the possibility of the asset turning into a non-performing asset. CrossFraud®'s Early Warning Signals System detects indications of a breach from many signals derived from collating contemporary industry experience in addition to the set of 45 early warning signals given by RBI as guidelines through real time monitoring.

Trade Finance

Fraud in trade products is considered to be the most prevalent. Banks can detect and prevent fraud through real time monitoring of trade products using the CrossFraud® Early Warning Signals System. CrossFraud® gathers intelligence from a huge set of external sources such as IDPMS/EDPMS, SCOMET, EXIM Bank risk scoring, FIMMDA, MCDX, UN Comtrade, WCO, D&B, and DOW JONES. It detects early warning signals in trade finance and combines it with the detection of suspicious activity using the power of AI-ML and through well framed rules to match the latest trends in trade finance fraud.

Data Analysis

Millions of transactions go through the bank in a day and it is a herculean task for the personnel in Risk Management Group to study every transaction and detect suspicious activity, particularly because data is spread across several systems. The CrossFraud® EWSS presents in real time only the information crucial to the analysts, after collating data across several external systems.


Limits the chances of borrower default

It helps to get a closer view of the customer portfolio regularly to ensure that the EMIs and instalments are paid on time, thus maintaining the quality of borrowed loans. For individual customers, based on certain parameters, early warning signals are issued while scanning the entire portfolio.

Prevents Internal Fraud

Internal fraud is one of the most significant contributors in financial crime. The CrossFraud® EWSS helps in the detection and prevention of internal fraud.

Helps in loan disbursement decisions

Analyze the data to check the borrower’s financial health, repayment capacity and will/intent to pay back etc. so as to give a clearer picture to decide whether to disburse a loan or deny it.

Prevents exposure with defaulting borrowers

It monitors the different sectors, borrowers and their portfolios to access the at-risk segments and prevents exposure with such high-risk borrowers, backed by substantial explanations.