Loss Forecasting in line with IFRS 9

Calculating expected credit loss can be complex. But it doesn’t have to be

IFRS 9 requires lenders to add a greater degree of analytical rigour to how they calculate expected credit loss (ECL). Adapting existing ECL models (or creating them from scratch) can put an immense amount of strain on your organisation from a cost and resource perspective. What’s more, using inaccurate figures can result in you making unnecessarily high provisions as well as it being detrimental to the strategic planning process.

Experian’s IFRS 9 Credit Loss Insight (ICLI) solution enables you to comply with regulation by utilising economic scenarios alongside credit data to determine a more accurate ECL figure. 

Benefits

Comply with regulation

By incorporating economic forecasts, you can evidence a more sophisticated ECL calculation process.

Save time and money

Plug any skill or resource gaps by utilising Experian’s ICLI solution and leverage our team of expert risk and economic consultants.

Improve decision-making

By understanding how a positive/negative/neutral economic shift can affect your business, you can better adapt your strategy and/or lending policies.

What is ICLI?

Experian’s ICLI solution combines insights derived from your customer data (using CAIS) combined with our powerful customer-level bureau scores and robust economic forecasts to calculate ECL. We also use credit data to identify any significant increases in credit risk (SICR) within your portfolio. Knowing this figure will help you make the necessary provisions and mitigate any risks.

Our industry-leading Economics team build probability-weighted forecasts based on factors such as unemployment, inflation and credit availability. 

salesforce

"The new interactive ECL solution is straightforward to use and the team are pleased with the standardised input sheet which has reduced the timeframe to calculate the ECL provision. "

Matthew Burton, Group Retail Director and Deputy CEO at Hodge

Discover how we helped Hodge Bank save time when calculating ECL using our interactive solution.

Features

Regularly updated economic forecasts

Quickly adapt your products and lending policies based on changing market conditions.

Use modelled data

If you lack the historical data or have an insufficient number of defaults, we can build models on which to base ECL calculations.

Quick and easy

Our experts have developed an algorithm designed to help you calculate ECL with minimal effort. Simply enter a few figures and let the tool do the work. 

Benchmarking

We can help you understand how you compare to your peers.

Would you like to learn more?

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IFRS 9 Overview

Learn more about IFRS 9 and what it means for lenders.

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Impact of COVID-19

Listen to our Head of Regulatory Analytics, Liz Clarke  discuss how the pandemic has affected how we calculate ECL.

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IFRS 9 Credit Loss Insight (ICLI)

Find out more about how our solution can make calculating expected credit loss (ECL) easier.

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Discover how your business could benefit from ICLI

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