The Challenge
A high-growth point-of-sale lender faced auditor pressure to move from simplistic roll-rate methods to IFRS9-compliant models. With no existing PD, LGD, or EAD models, they needed a complete IFRS9 framework.
The Outcome
- 5–8% reduction in preventable credit losses through more accurate provisioning
- Models signed off by external audit with no qualifications
- Improved capital efficiency – More accurate provisions released capital for growth
- Regulatory-ready framework – Prepared for future FCA/PRA scrutiny
- Team trained on IFRS9 ongoing monitoring and recalibration
“We brought Kassriel Quant in to validate our IFRS9 models ahead of external audit. Their challenger models identified two weaknesses in the existing PD calibration that we hadn’t spotted, improving audit readiness and reducing regulatory risk.
— Senior Manager, Risk Consultancy”
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