JAYWING APPOINTED TO ASSIST COVENTRY BUILDING SOCIETY IN MEETING IFRS 9 MODELLING REQUIREMENTS

  • With Jaywing’s guidance prototype built within 10 weeks

Credit risk analytics expert, Jaywing, has been appointed by Coventry Building Society to support it through the design of IFRS 9 compliant models.

In less than two years, IFRS 9 will take effect. Coventry Building Society has appointed Jaywing to ensure it meets the guidelines well ahead of the deadline on 1st January 2018. Initial work is already underway for the building society and Jaywing has supported the Society to build a prototype model within 10 weeks, a process which can take many organisations much longer.

Jaywing was tasked with developing prototype IFRS 9 models for one of the Society’s key mortgage portfolios. The Society understood the benefits from a ‘test and learn’ prototype approach, considering the complexity associated with these forward-looking Expected Credit Loss (ECL) models.  Early insight of the IFRS 9 models has enabled the Society to understand the data and compliance requirements and provided assurance around the ability to implement the models onto their systems.

Jaywing’s approach is completely bespoke to Coventry Building Society, because every organisation has unique IFRS 9 and loss forecasting requirements as defined by their data, model and system infrastructure, as well as their business operations. Jaywing’s consultants worked in partnership with the Society in order to share their IFRS 9 experience and loss forecasting knowledge with the Society’s analysts throughout the engagement.

 Stay Updated To Save Money & Time. Join Our Free Newsletter 
. Indepth Analysis & Opinion       . Interviews      . Exclusive Reports  
. Free Digital Magazines      News & updates      . Event Invitations 
                     
& Much More Delivered To Your Inbox For Free.
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.

 

As a result of Jaywing’s involvement, Coventry Building Society has been able to gain internal approval of their IFRS 9 design based on the prototype model, which was built within demanding timescales, thus enabling the project to progress to full model build. This will stand them in good stead during the final development process when models will be deployed across the remaining portfolios. Jaywing helped the Society to execute a best practice standard to IFRS 9, all without impacting on their day-to-day business.

John Lowe, Finance Director at Coventry Building Society, said: “Jaywing brings a wealth of IFRS 9 experience and combines excellent modeling credentials with extensive industry knowledge. Their development of high quality ECL models within tight timescales means that we are well placed to achieve IFRS 9 compliance within our project timescales.”

Ben O’Brien, Managing Director, Jaywing, added: “While the requirement to assess expected credit losses may present a challenge to many lenders, Coventry Building Society had the broad foundations in place on which to build a compliant solution. Crucially, by outsourcing the project, the Society can be sure that the regulator’s demands and timescales will be met, while at the same time helping their internal teams learn from the expertise of the Jaywing team.”

Jaywing will continue to work with Coventry Building Society throughout IFRS 9 and beyond to learn how these robust and predictive long-range loss forecasting models are utilised for future stress testing and forecasting exercises as well as leveraged for pricing and business or investment strategies.

 Stay Updated To Save Money & Time. Join Our Free Newsletter 
. Indepth Analysis & Opinion       . Interviews      . Exclusive Reports  
. Free Digital Magazines      News & updates      . Event Invitations 
                     
& Much More Delivered To Your Inbox For Free.
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.

 
Close
Stay Updated To Save Money & Time. Join Our Free Newsletter. 
. Indepth Analysis & Opinion       Interviews          . Exclusive Reports 
. Free Digital Magazines        . News & updates        . Event Invitations
& Much More Delivered To Your Inbox For Free. 
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.
 
Close