Wealth management giant Perpetual has launched an “Australian first” new digital platform that aims to overhaul the management of mortgage risk.
ABSPerpetual Business Intelligence will allow banks and investors to view and analyse historical data, and predict future mortgage performance with the click of a button.
More than 150 million loan records from 58 lenders dating back almost 20 years have been utilised from Perpetual’s existing data warehouse to create ABSPerpetual Business Intelligence. Perpetual Corporate Trust has leveraged the expertise of Microsoft, Deloitte and CoreLogic to deliver the platform.
“This is ground-breaking. The power of the data is mind blowing and it’s all available at your fingertips,” Perpetual Corporate Trust general manager, Richard McCarthy, said.
The platform aims to transform the way banks manage their regulatory reporting obligations and promote a transparent and comparable mortgage market.
“There has been a lot of focus on the risks associated with the so-called housing bubble, investor loans and Chinese investment in Australian housing,” Mr McCarthy said. “With the click of a button, users can view and analyse mortgage performance metrics like arrears, loan-to-value ratio and mortgage loan balances in any postcode across Australia — and filter by loan, borrower or property characteristics — that’s pretty powerful.”
The platform will enable lenders test their mortgage book and provide insight into how a portfolio may perform when impacted by various macro-economic factors.
“The platform will enable users to calibrate interest rates, unemployment rates, house price index and gross domestic product – to define stress test scenarios. It will create significant operational and cost efficiencies by allowing users to calculate their four-year probability of default and expected loss projections,” Mr McCarthy said.
The launch of the new platform coincides with the Australian Securitisation Fourm’s annual conference, which takes place in Sydney today and tomorrow.
Mr McCarthy highlighted the importance of continuing to support the local securitisation market.
“Our focus and digital strategy is clear. We will continue to listen to our clients, innovate and develop solutions to add value to their business,” he said.
“Our heritage is strong, as is our ability to adapt. We have played an integral role in the Australian securitisation industry since it began in the 1980s.”
The ABSPerpetual Business Intelligence pilot will be launched at today’s Australian Securitisation Forum conference and will be available in early 2017.