Introduction

Impacto’s IFRS9 is a unique product that was developed based on accounting standards (IFRS) in the banking industry. This proprietary software recognizes Expected Credit Loss (ECL) before the credit event takes place using big data warehouse and analytics.

Why IFRS9

The global economic crash of 2008 resulted in some of the largest bankruptcies filed in the world. This highly significant event also sheds light on multiple discrepancies in unstable loan sanctioning and poor crediting decisions made by various large institutions that continue to haunt the financial sector. Today, all banks, credit unions, and other financial organizations have an obvious interest to avoid a repetition of the 2008 collapse. Our interest in developing this unique product was to enable better decision-making abilities for financial institutions.

IFRS9 features a logical model for classification and measurement, forward-looking "expected loss" impairment model, and a reformed approach to hedge accounting.

Impacto's IFRS9 Solution

  • Integrates the comfort of excel with the power of big data warehouse and analytics to offer wholesome solutions.
  • Highly trained implementation consultants involved in building the IFRS9 solution will take-up any challenge in creating additional data models, additional fields in existing data models, creating new rules for packetization (staging), Probability of Default (PD), and creating new calculation models and data mapping among other things.
  • IFRS9 solution is built keeping the accounting standard in mind and not a simple reporting standard. The model’s approach will impact the bottom-line and balance sheet.
  • It provides a multitude of calculations and a host of additional fields that can accept data from external systems without affecting CBS.

Problems and Impacto's Solutions

Problem: Field/table mapping between core banking and IFRS9 solution data model not supported due to the generic data model.

Solution: IMPACTO's IFRS9 solution comes with fields mapped between the FCUBS core banking and Impacto IFRS9's data model fields/tables. The basic data required is ready-made and any additional data required by the bank will be undertaken by ImpactoXGen with the bank team’s assistance.

Problem: Excel-based stand-alone solutions have limitations because they cannot meet stringent IFRS requirements in several areas.

Solution: Our highly trained implementation consultants assist in building the IFRS9 solution and are prepared take-up any challenge in creating additional data models, additional fields in existing data models, creating new rules for packetization (staging), Probability of Default (PD), creating new calculation models, and data mapping.

Impacto's IFRS9 Features

  • Automated systems and processes: Automation is at the heart of IMPACTO’s IFRS9. It has been our constant endeavor to automate tedious manual activity. Systems are built to implement IFRS9 requirements in a cost-effective and scalable way.
  • The solution developed by Banking and Risk Management Professionals: IMPACTO’s IFRS9 is created by FCUBS Core Banking Domain Experts and Credit Risk Management Professionals to meet all the needs of the bankers comprehensively.
  • Predefined data model: Our model is fully mapped to FCUBS fields for all data points. Additional fields, if required, can be mapped to FCUBS swiftly.
  • One-click data extraction: Data can be swiftly extracted from FCUBS core banking to IMPACTO’s IFRS 9 model.
  • Customer Support: Our implementation team can assist any bank in the creation of new data models and mapping of additional fields for calculation.
  • Sandbox Facility: A powerful facility for the bank to perform “what if” analysis using the production data without impacting the production run.
  • Display of formula: The formula values used for all calculations are displayed for reference.
  • Factory Features: IMPACTO’s IFRS9 solution is a unique offering where the solutions data model comes pre-mapped to the FCUBS core banking fields for lending, collateral, limit, and CASA modules. One-click data extraction from FCUBS core banking based on data mapping. The bar and pie chart or line graph presents numerical data in different combinations based on counts, amounts, etc. The confirmation screen ensures that only the required set of data extracted is considered for ECL calculation. IMPACTO’s IFRS9 calculation model for Probability of Default (PD) is the Internal Rating Based (IRB) risk assessment for corporate and retail customers.