Taking Control and Mitigating Risk with a Collateral Management System

Taking Control and Mitigating Risk With a Collateral Management System (2)

The past few years have been one for the headlines. Markets have been volatile, there have been many changes in the political atmosphere, a global pandemic, war, and the list goes on. Managing the risks that each of those headlines could mean to your business is stressful and for many a very manual process. Historically, collateral management in wealth management lending has often been a siloed process with each department managing it individually. The addition of resources in credit and risk departments has been a growing trend and one that has been needed for quite some time. In our research, the processes in which banks are managing their collateral varies but often involve collecting data from a variety of sources, tracking in spreadsheets manually, and pulling rudimentary reports from the core banking system that only gives basic aggregated information at best. Truly gaining a comprehensive overview of all the collateral associated with a bank’s lending business is often the top desire we hear from clients followed by in-depth reporting and collateral management workflow capabilities.

We have heard from clients that they want to use our collateral monitoring and management solution for all their lending products, not just securities-based lending. Prospective clients expressed the same desire. As such, we have decided to expand our solution to support other types of lending products and different asset types as collateral and launched ApertureTM, which is our Enterprise Collateral Management solution. Aperture is built on the same state-of-the-art technology architecture as Supernova’s SBL core product that many of the US’s largest banks, RIAs, and broker-dealers use today. With Aperture, credit, and risk professionals can – 

  • Gain an accurate and up-to-date overview of collateral across different asset and loan types in real-time for marketable securities if desired
  • Set up multiple credit policies with ease through our admin portal
  • Perform portfolio concentration analysis to provide more in-depth insights on potential risks
  • Pull pre-defined and custom reports quickly and efficiently at a click of a button to meet compliance and operational needs
  • Automate collateral release support
  • Assess borrower’s risk across the entire relationship easily through well-designed data visualizations and modules
  • In-depth “what-if” stress testing for marketable securities to proactively mitigate any potential risks

Say goodbye to the days of hiring additional headcount or borrowing resources from other teams to help manually collect relevant collateral data and update Excel spreadsheets. With Aperture, credit and risk professionals have fast and easy access to up-to-date information on their lending book collateral. Supernova can integrate our solution with a bank’s internal systems and external partners. We know each bank has its unique needs and credit policies. We designed Aperture to be flexible enough to support the configuration of different credit policies and for credit/risk professionals to make exceptions, covenants, or overrides with ease while keeping all exceptions organized for future reference. Our platform has easy-to-understand data visualizations that help you identify insights faster and make more informed decisions.


Aperture provides robust data and data analytics for risk/credit officers to monitor, anticipate, and mitigate risks through multiple lenses – line of credit itself, collateral, and borrower. What is unique about Aperture is that much like the aperture of a camera, the Aperture solution provides a deeper focus on the overall risk picture through these three lenses. In addition, Aperture supports a more holistic view of the borrower’s relationship with the bank across different lending products and can support the assignment of a borrower risk rating to help credit/risk professionals with making more informed decisions.


Many organizations are siloed and visibility across groups is an organization struggle. The lack of visibility across teams can cause operation and client-facing staff to struggle with making timely and informed decisions. Developing a digital and streamlined solution with the goal of creating efficiencies for cross-team collaboration was top of mind when the team designed Aperture. Our client feedback was fundamental in identifying the operational pain points of our clients and where to focus our energy to create efficiencies. With Aperture, your team will have access to tools, reports, and workflows that enable them to make informed decisions and act with efficiency. A few features that were identified to create efficiencies are:

  • Automatic calculation of collateral release
  • Portfolio concentration analysis to provide more in-depth insights on potential risk
  • Rule-based and streamlined workflows to support collateral call management in scale with efficiency and at a reduced cost

Our client feedback was fundamental in identifying the operational pain points of our clients and where to focus our energy to create efficiencies.

In conclusion, we know the standards for risk management and customer service today are at the highest levels and clients are often looking for immediate answers to their questions. It is essential to have a technological solution that equips your team to have the answers at their fingertips to provide the service your clients expect and deserve. Now more than ever, financial institutions need a collateral management solution that provides speed, transparency, efficiency, and a streamlined digital workflow to support the new hybrid working environment. Supernova’s Aperture collateral management solution checks all the boxes and more. Gain better control of your risk management with efficiency and at reduced costs.

To learn more about Aperture, contact us today.

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A shortened version of this article was published on BankDirector.com.