Following the success of the licensed system, EDB has launched a 'pay as you grow' solution for the UK market where it recognises that there has been a renewed industry focus on commercial lending because the margins from retail loans have fallen considerably. As the commercial lending environment has become increasingly competitive, EDB is offering a flexible solution so that all levels of the industry, from larger banks to small or mid-sized financial institutions, have a solution available to them to increase process efficiency, deliver sustainable returns and use the new regulatory demands as a catalyst for strengthening the business.

 

EDB recognises that many of the current commercial lending solutions available are unsuitable and potentially open-up these organisations to risk and compliance concerns. Medium-sized and smaller commercial lending organisations especially, currently may have no bespoke solution to answer their needs and yet cannot fully justify the cost of investing in licensed software. Currently such companies are either: operating using their core systems which are altered internally by the IT department; developing internal bespoke software which is hugely draining on IT resources or relying on a non integrated system of Excel spreadsheets.  None of these options is ideal for a commercial lending environment that is inherently more fluid and increasingly sophisticated due to the need to match customer's expectations through the use of ever more complex rate, margin and fee structures.

 

In contrast, EDB's system allows complete risk management by:

Tracking exposure and changes to underlying assets, with automatic actions scheduled to occur according to conditions precedent

Implementing robust business controls by creating access controls and data traceability and responsibility

Storing all data amendments and additions in an audit log that allows internal audit tracking and compliance with the regulatory requirements of Basel II

Working across multi-currency and syndicated lending

 

EDB's  SaaS solution is accessed via the internet so a business can receive all the benefits of the software without the operational risk of running the system. There are no implementation or hosting challenges for the IT department and, once purchased, the system can be operational within a few weeks. The software is hosted in the UK by EDB's partner Business Systems Group (BSG), a company with a proven hosting track record and is supported on a highly secure platform.  It is offered on a simple, fixed price structure that is based on the level of selected functionality, service level requirements and number of users, but that also allows the solution to grow with the customer. It offers functionality that will suit the requirements of the majority of commercial lending departments and organisations.

 

EDB offers the ELS on the SaaS model after successfully providing this solution to the Norwegian market for many years. The launch of EDB Lending Solution is part of the consolidation of EDB's presence in the UK. In addition to offering EDB Lending Solution as a service it will continue to offer it on the traditional licensed software model in order to ensure flexibility and choice to UK financial companies and departments operating in the commercial lending arena.

 

Jorgen Roed, head of UK Sales and Marketing, EDB, said: "With regulatory requirements becoming more urgent and financial companies needing stronger business controls, offering the EDB Lending Solution as a service provides organisations with the functionality they require while removing the economic hurdles of implementing a licensed system internally. In addition to satisfying a neglected market sector within commercial lending, the Software-as-a-Service model offers EDB an excellent opportunity to reassert itself in the UK market and gain competitive ground moving forward."

 

EDB Business Partner ASA is one of the leading stock exchange quoted IT groups in the Nordic region, with turnover of NOK 5.8 billion and operating profit before intangible asset amortisation (EBITA) of NOK 541 million for 2006. The group employed 3,900 people at the outset of 2006. The company has two main business areas - Solutions and IT Operations.  The Solutions business offers an extensive portfolio of software and services for the public sector and the bank and finance industry.

 

EDB offers IT solutions and services for the areas in which it operates: banking and finance, the public sector, trade and industry, and telecommunications.  EDB is also strongly positioned in its role as an outsourcing partner.