Why IFRS9

why ifrs

The global economic crash of 2008 resulted in some of the largest bankruptcies filed in the world. This highly significant event also shed light on multiple discrepancies in unstable loan sanctioning and poor crediting decisions made by various large institutions that continues 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 bucketization (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

   Provides multitude of calculations and a host of additional fields which can accept data from external systems without affecting CBS

Problems and Impacto's Solutions

Field/table mapping between core banking and IFRS9 solution data model not supported due to generic data model.
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.
Excel based stand-alone solutions have limitations because they cannot meet stringent IFRS requirements in several areas.
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 bucketization (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
   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 in a comprehensive manner
   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 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 an 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. Bar and pie chart or line graph presents numerical data in different combinations based on counts, amounts etc. 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 Internal Rating Based (IRB) risk assessment for corporate and retail customers.