Collateral Management
Collateral Management
Collateral Management is not a standalone capability in banking business processes. It is a sub capability which is part of various lending processes in commercial and retail lines of business. At LeanThoughts, our experts in SAP Collateral Management System (CMS) can help you realize your collateral related processes by defining your physical and financial collaterals, as well as structure your business processes such as collateral valuations, collateral release and substitution, and other collateral life-cycle operations.
SAP CMS is a centralised operational collateral management system which collateralises receivables in various SAP and non-SAP receivable systems. SAP CMS is capable of managing the complete life cycle of collaterals from creation of collaterals to the various servicing operation till liquidation of the collateral. SAP CMS has there sub-components called Object Management, Collateral Agreements and Interface Receivable which manages the complete functionality offered in CMS.
In the real world objects like real estate property, vehicles, time deposits can exist independently without references to any other entities. An object becomes collateral when a collateral agreement is signed between the giver and the taker, usually a bank and a borrower. This is the fundamental principle under which SAP CMS product is built.
Our consultants at LeanThoughts brings expertise in various core banking modules thereby enabling you to configure your code transaction banking processes quick and accurate.
