Asset Tracking

In a lending organization asset tracking is a part of collateral management. It refers to the process of monitoring and managing assets used as collateral for loans or other financial agreements. This practice ensures that the collateral’s value remains sufficient to cover the obligations and mitigates the risk of default.

It involves identification of the asset, its valuation, assessment and monitoring. It also includes ensuring the asset meets regulatory and contractual requirements, and maintaining accurate records for audit purposes.

Effective asset tracking helps lenders and financial institutions maintain confidence in the collateral’s ability to secure the loan, reducing the risk of financial loss.