Is S/4 Hana Banking for Complex Loans convincing?

In Core Banking, S/4 Hana Banking for Complex Loans is a standard product. The software offers efficient processing of structured financing. Specifically, it enables the processing and monitoring of complex financing structures, including the syndications, master data, conditions, rules (for drawings, payment control, and payment chains), covenants, and the required business transactions (e.g., for rescissions, waivers, repayments, extensions, and borrower changes). Technically, it is based as an add-on on SAP Loans Management for Banking ERP (formerly SAP FS-CML) and uses S/4 technology.

The core of the SAP component is the Financing Workplace, which provides a common entry point for all persons of interest to create and edit financing and syndication. The resulting financing elements are stored in the back-end as loan management contracts or other accounts.

In detail: The financing workstation makes it possible to map and edit all financing components together, almost like an Excel spreadsheet in which a loan is shown in each line, so that the financing components are clearly displayed. By means of rules, conditions can be automatically derived and supplemented.

The further developments of the software include an adapted user experience as well as optimized workflows and an increased degree of automation. The changes are particularly noticeable with regard to the previous SAP Loans Management for Banking.

The interfaces are based on the Fiori design concept. Intuitive masks and entry aids make it easy to enter data. The user experience is also enhanced by a close-to-contract representation of complex structured and syndicated, as well as bilateral, loans via mapping in a three-level hierarchy (financing - tranche - drawdown). The user can obtain a good overview of the financing in a comparatively short time on the basis of the most important information.

Furthermore, the user is supported by workflow and monitoring processes, which are used, for example, in approval processes for changes to the credit agreement, covenant checks, the expiry of drawdown periods or the maturity of implicit options.

The possibility of inheriting conditions in drawings and the option of simulating various contract changes with copies of structured financing are also advantageous in terms of handling. In terms of automation, it can be stated that loan processing is significantly supported with a large number of known or additional new business transactions.

Now, of course, the question for customers is: Is the software convincing? S/4 Hana Banking for Complex Loans is a well thought-out solution for structured financing with high savings potential in ongoing processing as well as in the dismantling of the previous IT in-house developments. The functionalities and the new interfaces deliver high added value for the bank.

The close cooperation with the specialist department can be seen in the user interface and the recording functionalities supported there. With SAP Loans Management as the basis for data storage and calculations, a mature standard product from SAP is also used.

In theory, the new solution is extremely smart - it impresses with significant technical improvements for efficient working in the specialist area. However, one prerequisite that must be kept in mind: The software almost absolutely demands a switch to the new ERP system S/4 Hana, because the introduction of parallel operation with a hybrid solution would be unprofitable.