Case Study 1

The Need

Within the Bank of England's Sterling Monetary Framework, loan collateral must be pre- positioned in advance for the Bank to lend against it, and the process is designed to ensure the Bank can value and risk-manage the assets. After pre-positioning, there are also ongoing expectations around pool management, including monitoring, periodic due diligence, regular data tape provision, and the ability to add or remove loans over time.

The Challenge

The bank needed a monthly process that was fast, repeatable, transparent and auditable. Prior to InCol Intelligence, preparation of pledge and pre-pledge views could take weeks, driven by manual filtering, reconciliation and iteration. Inconsistent formatting and missing or incomplete fields created rework and internal debate about which extract was correct. The team also needed clearer evidence of what criteria were applied, what was excluded and why, and what changed between refreshes.

What InCol Intelligence delivered

Data Integrity as the foundation for confident decisions. The bank implemented an in- built data validation facility to identify and remediate errors and omissions, inconsistencies, information gaps and incorrect formatting. This created a single source of truth for loan-level data across the organisation and gave stakeholders confidence that selection and reporting were built on consistent inputs.

A repeatable pledge and pre-pledge sub-portfolio workflow. Using the portfolio creator within Funding and Capital Management, the treasury and collateral team defined transparent criteria and generated repeatable sub-portfolios for internal pledge and pre- pledge readiness. The workflow supports execution timelines where speed and control matter, while keeping criteria definition and selection consistent over time.

With data integrity established and the portfolio consistently structured, stakeholders used the same validated dataset each day to answer management and risk questions, without rebuilding bespoke extracts.

Results

Monthly process time reduced from weeks to minutes to prepare what the team needs for pledge and pre-pledge sub-portfolios. The platform now provides a single source of truth used across the organisation, reducing reconciliation effort and supporting greater confidence in the bank’s data. The solution supports the bank’s current operating cadence and is engineered to scale materially further. It has been validated on portfolios exceeding €50bn.

How it works

1. Refresh the loan-level dataset, including the fields used for eligibility screening and
   pool maintenance.

2. Run Data Integrity checks to surface exceptions and correct issues upstream.

3. Apply saved criteria using the portfolio creator to generate pledge and pre-pledge sub-
   portfolios consistently.

4. Review changes and exceptions as part of internal governance and sign off.

5. Use the same dataset for analytics, including portfolio interrogation, profile shifts and
   management reporting.