IT industry news: Companies 'should understand their clients' risk profile'

07:10 30th September 2011

Financial firms should use technological advances to understand their customers' risk profile and their level of market exposure, said Martha Bennett, head of strategy at Freeform Dynamics during an FT Connected Business podcast.

"If you can take a final view of that risk so you can say which types of customer are more at risk of default and also, should they come into arrears because for example they have lost their job, what the likelihood is of how quickly that person can find another job," she said.

She went on to say that allows financial firms to have a much better understanding on their clients' risk. "The better handle on your risk, the less capital you need to set aside to cover for potential losses," she explained.

Her comments emerged as Stephen Pritchard, Connected Business contributor, said some of the world's most powerful computers in private hands are in banking. "Banks also generate millions of transactions every day."

Posted by Derek Oldman
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