Success Story
82% Faster Covenant Processing and a 1,800-Loan Covenant Re-Baseline for a US-Based Super-Regional Bank Using CovenAce™
Client Introduction
A US-based super-regional bank with a commercial and industrial lending book of more than 1,800 relationships, facing internal audit scrutiny over the reliability of its covenant records.
Problem Statement
The bank's covenant records had been built from term sheets and credit approvals rather than the executed agreements. Key challenges included:
- Covenants keyed at booking and never reconciled against executed agreements
- Amendments and waivers missing from the loan system
- Manual extraction averaging ~75 minutes per loan
- Compliance certificates filed without independent recalculation
- A 12-month remediation deadline following an internal audit finding
The bank needed a verified covenant record for the entire book, reconciled to the signed documents, without adding headcount.
Solution Offered
Anaptyss deployed CovenAce™ with a dedicated team of credit analysts, a covenant SME and a QA lead under its Digital Knowledge Operations™ delivery model.
Every variance was adjudicated by an analyst before any correction was written back, with a tamperproof audit trail maintained throughout.
Key Solution Delivered
- Ingested 1,800+ executed agreements and 2,600+ amendments, including scanned documents
- Extracted financial, reporting and negative covenants into a standardized structure
- Reconciled every covenant against the loan origination system record
- Routed variances to analysts with page and clause references
- Recalculated reported ratios from source financials
- Compared recalculated results with borrower compliance certificates
- Maintained a tamperproof audit trail for internal audit review
- Transitioned the verified record into quarterly covenant monitoring
Business Outcomes
- 82% faster covenant processing, from ~75 to ~13 minutes per loan.
- 1,800+ loans re-baselined in 11 weeks, ahead of the remediation deadline.
- ~45% of covenant records corrected against executed agreements.
- 14 reported covenant passes reclassified after independent recalculation.
Turning Complex Challenges into
Measurable Outcomes
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