LONDON — June 22, 2017
- FICO was named a Category Leader in IFRS 9 solutions by research firm Chartis Research.
- IFRS 9 is a transformational event for financial institutions, changing the way they hold provisions against future credit losses.
- FICO’s solution combines precise analytics with high-speed decision management software and consulting from industry experts in compliance and risk management.
Analytic software firm FICO today announced that it has been named a Category Leader in IFRS 9 solutions by research firm Chartis. The Chartis Research report IFRS 9 Technology Solutions: Market Update 2017 cites the steep challenges financial institutions face in meeting the accounting regulation, which will cause banks to hold more capital in the form of provisions against possible credit losses.
More information: http://www.fico.com/en/solution/fico-ifrs-9-impairment-management
“Like other regulatory mandates of the past decade, IFRS 9 is another transformational event for all financial institutions (FIs),” the report states. “In all likelihood, it will reduce FIs’ profits and retained earnings, increase their loan loss provisions, and have a negative impact on their regulatory and economic capital. To mitigate these impacts, FIs will have to rely heavily on the rigor of their data management and the quality of their data, and on the application of Expected Credit Loss (ECL) modeling and overall governance.”
The FICO® IFRS 9 Impairment Management Solution includes industry-leading predictive modeling for loss forecasting; software for high-speed model execution, loss reporting, process governance and “what-if” scenario analysis; and strategy consulting from advisors with extensive domain and analytics expertise.
“Effectively addressing the challenges of this new standard will enable senior management to make better-informed, forward-looking strategic risk management decisions,” said David Binder, senior director and global IFRS 9 program lead at FICO, who formerly led Barclaycard’s global impairment, capital demand and stress testing team. “Getting there, though, won’t be easy. In our work with customers on IFRS 9, we’re bringing an unmatched amount of expertise in risk modeling and forecasting, along with a focus on governance and control.
“Ultimately, IFRS 9 isn’t just about compliance,” Binder added. “It’s about better credit risk management. Once you’re set up to comply with the standard, you need to focus on revising your credit strategies, so that you can rebuild some of the profitability you will lose under the new requirements. That’s where our software, consulting and real-world impairment management experience make all the difference.”
FICO experts blog about IFRS 9 and other regulations affecting financial institutions at http://www.fico.com/en/blogs/tag/regulation/.
About Chartis Research
Chartis is the leading provider of research and analysis on the global market for risk technology and is part of the Insight division of InfoPro Digital, which includes market leading brands such as Risk and Waters Technology. Chartis' goal is to support enterprises as they drive business performance through better risk management, corporate governance and compliance and to help clients make informed technology and business decisions by providing in-depth analysis and actionable advice on virtually all aspects of risk technology.
RiskTech Quadrant®, RiskTech100® and Fintech QuadrantTM are registered trademarks of Chartis Research (http://www.chartis-research.com)
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 170 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
Learn more at www.fico.com.
FICO is a registered trademark of Fair Isaac Corporation in the US and other countries.
Emily Broadbent for FICO
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