Monday, April 12, 2004
Credit Union Central of Canada (Canadian Central) and Covarity Inc. announced today that they have finalized a five year agreement for credit risk management services
(Kitchener, Ontario, April 12, 2004)
Credit Union Central of Canada (Canadian Central) and Covarity Inc. announced today that they have finalized a five year agreement for credit risk management services. The agreement will provide Canada's credit unions access to Covarity's solution for automating financial statement gathering, credit risk analysis, and financial reporting for small and medium sized (SME) enterprise credit products.
Covarity is a real-time loan monitoring, review and management product designed to assist credit unions in their administration of commercial accounts. Credit unions will now have access to a service that automates and standardizes credit risk management practices associated with portfolio management.
"We are very excited about offering this type of leading edge solution," said Jim Hackett, Chief Operating Officer, Canadian Central. "This service offers a unique opportunity to differentiate ourselves from our bank competitors, and will be another 'first to the market' for Canada's credit unions. This contributes to the already strong and recognized national practice of community based credit union lending."
The Covarity service presents significant financial savings for credit unions by reducing the regulatory and administrative burden associated with loan portfolio management. This is done by retrieving financial information (income statement, balance sheet, accounts receivable and payable) directly from the borrower, processing the information and issuing reports on borrowing base and other financial ratio covenants. Also, relationships with SME borrowers are enhanced because Covarity's service allows both the lender and the borrower to gain a common understanding of the borrower's financial trends and covenants.
"A national program makes it easier for credit unions, large and small, to reduce the administrative burden of managing commercial lending portfolios," said Ron Shuttleworth, President and CEO, Covarity. "This will help credit unions across the country to continue to consistently offer the industry leading credit services to SME members anywhere in the country."
About Credit Union Central of Canada
About Covarity Inc.
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