Loan Portfolio Analysis Tools You Might Not Be Aware Of
June 2017

The advent of complex loan portfolio management software has opened a new world of possibilities.

Not only can you more readily access pertinent data and accelerate the turnaround time of traditional analytical exercises, but you can create customized graphs, charts, and reports that offer a new perspective or dimension.

Consider these tools to help you better evaluate the risks and opportunities throughout your credit union’s portfolio.



It’s not just the data itself, but how it’s presented. Sometimes, numbers tell the story best, especially to express stark realities. But scientific studies consistently demonstrate the truth behind the old axiom “a picture is worth a thousand words.” When used correctly, visuals distill large pools of data into a comprehensible image that exposes patterns, correlations, trends, and outliers. Take, for instance, a credit score migration report displayed as a circle graph that depicts the current and originating credit scores of your entire portfolio. In a matter of seconds, you can assess the overall picture and home in on segments in which too much drift has occurred. Having a series of visuals at your disposal in dashboard form allows you to quickly assess the overall condition of your portfolio.


A valuable complement to segmentation, stratification serves as an excellent quality control tool. It allows you to analyze data by separating it into distinct layers — as like rock formations. This exercise, which puts a magnifying glass on elements such as loan type, branch, underwriter and closing agent, can isolate strengths and weaknesses in the process, paving the way for changes that increase efficiency.


Optimal portfolio management requires constant monitoring — but usually there is too much to track manually. Software can and should do the heavy lifting for you. Customize data thresholds for multiple forms of risk across multiple loan channels, dependent on the characteristics of borrowers and the specific markets you serve — and then create notifications that provide pre-emptive alerts to individual loans experiencing trouble signs. Mark these loans so you can act immediately to address the deficiencies, or more closely track their progress. This process also allows evaluation of trends in your portfolio.

Document digitization/production

We’re not just talking about simple scanning and storage — which also is a valuable resource — but also the capability to access and sort that data. On the flip side, the ability to create customized, uniform reports based off your loan portfolio data puts everyone on the same page, so to speak.

External resources

To gain a 360-degree view of the members in your loan portfolio, and the aggregate health of your portfolio and your local market, mine databases maintained by local governments and other entities. For instance, the mortgage-backed securities pricing from government-sponsored entities like Fannie Mae and Freddie Mac provides another view of the true market value of your 

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