The automotive industry is undergoing dramatic transformation. Currently, consumer demand is shifting from the internal combustion engine to the electric motor. This is having an extreme impact on suppliers who are specialized in internal combustion engines. Many of them are not in a position to implement the technology shift within the company. As a consequence, orders are canceled and jobs are lost.
For banks, this has fundamentally changed the risk assessment for these automotive sectors. 
As a result, the rating in the credit parameters has to be lowered from high to low.

Previously, sales, credit management and recovery staff had to be trained, sensitized and monitored to eliminate increased risks for the bank in such a transformation.

In portfolio management through parameterization, the management adjusts the parameters directly in the tool on a daily basis. If necessary, the valuation of industries, collateral deposited by the customer for a loan or, for example, the bank’s own personnel costs, are adjusted. This impact flows directly to the organization through portfolio management and parameterization. 

And further: By increasing the interest rate for the industry, there is automatically a selection in the market. Accordingly, a desired loan increase for a company without an innovative perspective will not be followed by banking institutions. As a result, there will be a selection of companies in the market that are not viable for the future.