Credit Risk Support in Core Banking System Transformation

SUMMARY

The client, a European-based bank, required support on several credit risk related topics in the context of the migration of their core banking system.

CUSTOMER GOALS

The focus has been on the smooth implementation into the bank’s new core banking system of the IFRS9 Impairment and Loan Origination and Monitoring regulations across multiple banking products (i.e., guarantees, overdrafts, personal loans, mortgages, Lombard loans etc.).

The project required

• A thorough understanding of the IFRS9 and Loan Origination and Monitoring regulatory requirements linked to credit risk
• Coordination of the design and development of the core banking system interface with various stakeholders (i.e., Risk Management, Wealth Management and IT development teams)
• Implementation and simulation of credit risk ratios, as per regulatory requirements.

CHALLENGES

The project involved a wide range of stakeholders from various business areas of the bank as well as a vast scope of regulatory topics. Therefore, one of the main challenges was to engage the key stakeholders in key processes and ensure their project expectations are successfully met. Moreover, another key challenge was the understanding and the accurate implementation of the large scope of regulatory requirements within a tight timeframe while maintaining the stakeholder’s motivation at the same time.

SOLUTIONS

Avantage Reply provided two full-time resources who led several credit risk workstreams to ensure the correct implementation of the above-mentioned regulatory requirements into the bank’s core banking system. The deployed team conducted the following:

• Reviewed and defined the scope of the regulatory requirements applicable to the credit risk management department to be implemented in the new core banking system
• Led several teams during the User Acceptance Testing (UAT) of the newly implemented core banking system
• Organised and led training sessions with the client to ensure the clear understanding of the regulatory requirements implemented in the new core banking system
• Continuously addressed the business requirements of the core banking system with the IT development teams to ensure an accurate delivery of business needs