PNC to Buy Lending Software

PNC Financial Corp. signed a contract this week to purchase software designed to provide details on the profitability of the bank's corporate accounts.

The contract, whose size was not disclosed, is part of the bank's overhaul of the wholesale operations computer systems. The effort is aimed at reducing expenses and improving the decision-making of lenders and executives.

So far, only a few banks have taken the steps PNC has to revamp corporate banking.

"Being a big bank with an increased administrative burden in a difficult banking environment, we are trying to make our lending officers more productive," said Matthew Sola, assistant vice president.

Micro/Resources Is Vendor

Part of that productivity includes making better loans, the reason PNC decided to purchase profitability software, called Crisp, from Micro/ Resources Inc. of Corte Madera, Calif. The software is designed to report the profitability of lending customers and proposed loans.

PNC asked for some customization of this software, to enable lenders to determine the return on assets or capital for a given customers accounts.

No Time Limit for Test

Two groups of PNC lenders, who will be given personal computers, will test the software. Mr. Sola said there was no time limit for the test.

PNC, however, plans to take the system one step further. In the past year, PNC has installed software to automate the generation of credit memos, for example. The software, called Power1, is from BankA Corp., Dallas.

PNC plans to tie this system to the lending profitability software.

The electronic link between computer systems would speed the process of making a loan by eliminating time spent looking up loan and customer information in various computer systems.

For example, to make a loan, a lending officer must determine the customer's payment history, do a financial analysis, and consult another computer program to figure of the bank's and customer's exposure. By linking various computer systems, a lender can obtain information more easily, on a personal computer.

IBM has been developing a comprehensive computer system for lenders, called Officers Workbench, based on that principle. The product, under development for years, is being tested at Meridian Bancorp. in Reading, Pa.

"In the officers workbench from IBM, the concept is there - you have a common data base and some versatility in going back and forth between programs," said Mr. Sola.

The Pittsburgh bank has other systems under way, designed to improve management's view of the corporation. The most significant one is a corporate profitability system, developed with Hogan Systems.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.