An intelligent, configurable Expected Credit Loss solution to accelerate results for the mid-market
For: Non-bank lenders | Buy-now-pay-later, payday lenders and similar | Small banks Equipment finance | Lessors | Trade receivables with extended terms or complexities
i9 Partners have just made available their next generation of intelligent and customisable IFRS 9 ECL solutions. This extends their world-leading high-value, quick turnaround ECL solutions beyond “vanilla Trade Receivables” to lenders, financiers and providers of extended or complex trade credit.
“The sweet spot for our new offering is non-bank lenders, small banks with limited products and companies with trade receivables books with extended terms or complexities,” says CEO Laurence Milner. “These organisations generally need a cost-effective, yet credible and considered ECL measurement. The availability of measurement specialists to provide support is also critical.
This new offering is positioned above our world-leading Trade Receivables ECL solution, which has revolutionised measurement on more vanilla books”.
Auditors also use this flexible solution as a “Challenger model” to their client’s internal models and calculations. This avoids the expense, long turnaround, and key person dependency of self-built audit tools. We support audit teams by allowing them to audit the model itself and interact with our experts.
The ongoing development and maintenance of the solution provides longevity and peace of mind. IFRS 9 interpretation and audit requirements are still evolving and the latest best practice is funnelled into version updates through our ongoing engagement with leading IFRS 9 and credit risk management specialists at audit firms and at Moody’s.
Make sure that you consider
Characteristics that indicate that this more advanced ECL model is suitable to include:
- Interest
- Instalments
- Extended terms
- Contractual terms
- Loans
- High-risk or write-off books
- Collateral
- Credit vetting or risk grading
- Complexity
- Excessive credit notes
- Performing and non-performing classifications
- Curing
- Rolling facilities
The solution
Our end-to-end solution closes with a successful and efficient audit and comprises:
- A proven and auditable IFRS 9 and process methodology built on 100’s of engagements
- A taxonomy that allows you to map your data and product parameters so that they then flow seamlessly through the models
- Flexibility in measurement which is driven by smart design and customisable parameters
- Reporting that is easy for finance teams and ARC to digest and auditors to audit
- An optional expert report
- Credit cycle (i.e. point in time) and FLI adjustment through Moody’s Analytics’ award-winning solutions
