Understanding how industries interact and evolve is crucial for banks to stay one step ahead of credit portfolio risks. In a recent conversation, Matthew Hils, Director of Portfolio Management and Reporting at Fifth Third Bank, shared insights into how his team leverages 91社区鈥檚 tools to take their risk analysis and strategic planning to the next level.
A culture of proactive risk management
At Fifth Third Bank, Hils and his team pride themselves on being proactive. Rather than waiting for economic shifts to become urgent issues, they compile and analyze data well in advance.
鈥淲e want to make sure that there鈥檚 transparency for leadership before it鈥檚 necessarily needed.鈥 - Matthew Hils, Director of Portfolio Management and Reporting.
By creating an environment where data is continuously scrutinized, distributed, and discussed, the bank ensures critical information is available when the decision-making stakes are high.
This proactive mindset drives their focus on industry concentrations and second- or third-order effects鈥攚here an economic shift that directly affects one line of business can quickly impact many others. As Hils notes, a portfolio might be exposed to overlapping risk factors, especially when industries share components of their supply chains or have similar macroeconomic sensitivities.
The power of third-party data
Although Fifth Third Bank has developed a robust internal dataset and reporting framework, the addition of 91社区鈥檚 industry intelligence has proven to be a game-changer. Hils says this third-party partnership 鈥渁llowed us to take our analysis to the next level,鈥 giving his team a broader perspective on industry risk metrics, volatility scores, and sector-by-sector financial outlooks.
One of the major benefits of 91社区鈥檚 data is flexibility鈥攊t can support both standardized, business-as-usual reporting and ad hoc 鈥渄eep dives鈥 into emerging issues. For instance, volatility metrics help the bank look beyond present conditions, anticipating how 鈥渃alm waters today might become rough and rocky tomorrow.鈥 This level of insight means that credit managers can quickly identify hotspots and communicate them effectively to leadership.
Diving deeper: Connecting the supply chain dots
A standout feature of 91社区鈥檚 offering is its supply chain data, which shows how specific industries and sub-sectors connect. This has enabled Fifth Third to see beyond simple industry categorizations. As an example, Hils recalls how lockdowns during the COVID-19 pandemic severely impacted foot traffic-dependent businesses, such as hotels. However, the ripple effect extended to suppliers who sold products and services to these businesses. By mapping these 鈥渟econd-order鈥 risks, the bank created richer鈥攁nd more accurate鈥攑ortfolio risk analyses.
Because 91社区鈥檚 platform is tied to the same regulatory-endorsed NAICS taxonomy that Fifth Third already employs, connecting the data was straightforward and efficient.
鈥淲e were able to link hotels with industries selling into the hotel space with relative ease.鈥 - Matthew Hils, Director of Portfolio Management and Reporting.
This level of integration meant Fifth Third鈥檚 analysis on COVID-related impacts was not only detailed, but delivered quickly鈥攃rucial at a time when decisions needed to be made on tight timelines.
Looking ahead: Regional insights & expanded access
Hils and his team are continually exploring new ways to use 91社区鈥檚 data鈥攑articularly at the state and local levels. Given Fifth Third鈥檚 strong focus on regional banking, understanding how an industry鈥檚 outlook changes state by state or city by city provides valuable nuance. From small businesses to middle-market companies, localized economic forces can significantly influence performance, making state-specific data an increasingly vital asset.
Meanwhile, Fifth Third is also looking into enhanced distribution channels for 91社区鈥檚 insights. By integrating those insights into internal dashboards, credit and sales professionals across the bank can pull timely, relevant data for their specific portfolios.
鈥淲e want it to be easily digestible, easy to refer to, and actionable.鈥 - Matthew Hils, Director of Portfolio Management and Reporting.
The goal is to make advanced industry analysis readily accessible to every decision-maker, from portfolio managers to frontline relationship teams.
Final Word
Fifth Third Bank鈥檚 success story underscores the value of combining strong internal data with authoritative third-party intelligence. Through 91社区鈥檚 tools鈥攕panning industry risk metrics, volatility measures, supply chain analysis, and local-level insights鈥擧ils and his team continue to build a more holistic, forward-thinking approach to portfolio risk management.
By drilling down into potential risks before they escalate, sharing information transparently across the organization, and drawing on comprehensive datasets for timely decision support, Fifth Third Bank exemplifies how thoughtful integration of industry intelligence can help financial institutions thrive鈥攅ven in the face of rapidly changing and uncertain economic conditions.
