THE CHALLENGE
A retail savings bank urgently needed to replace its inferior IFRS 9 solution provided by a traditional vendor in this space. The Bank initially felt it would be impossible to move away from their existing provider in a cost effective manner with minimal disruption.
THE SOLUTION
The Bank had been depending on a traditional vendor to support their IFRS 9 requirements. Unfortunately it was taking far too long (often over 48 hours) to complete the calculation of their Expected Credit Loss (ECL).
The Bank desperately required a more modern-day solution, that could seamlessly run their ECL calculations in a shorter timeframe, with the added ability of running multiple simulations in the same environment and with minimal effort needed.
ElysianNxt provided a solution based on cutting edge technology enabling the Bank to step into the world of real-time risk management.
THE OUTCOME
ElysianNxt proved in a very short space of time that the Bank could quickly and easily replace their existing platform and run their ECL calculations within a much improved 2 hour window.
The Journey
2017
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2018
Initial implementation
- The Bank implemented an IFRS 9 solution in 2017-2018 with one of the traditional vendors in this space.
- The system proved challenging and needed 48 hours to complete the calculation of Expected Credit Loss (ECL).
- The implementation of the incumbent traditional solution took around 6 months.
- In 2020, the license with the initial vendor came up for renewal at which point the Bank decided to look for another vendor.
The Bank's concerns for considering a new solution:
- The bank had spent significantly on the initial implementation, was hesitant to take on another project and had little appetite to spend more money.
- A replacement project could take a long time to implement and users would have to be retrained.
- ElysianNxt proved via a Proof of Concept that it could easily replace the existing platform in just a few weeks and for a significantly lower cost to the Bank.
2020
A successful replacement
- In only 6 weeks the Bank was having like for like results and coverage.
- The ECL calculation now completes within 2 hours on the existing hardware of the Bank.
What did the bank get out of it:
- End of month process shortened by 2 days.
- Users can easily run simulations and stress tests.
- No new IFRS 9 license had to be bought as ElysianNxt’s software is based on a yearly subscription.
- Prevents all future expense on painful upgrade projects by a continuously updated solution
- The third-party database license could be scaled down as ElysianNxt does not need the enterprise version.
2021
Confidently moving forward with phase 2
- In 2021, the Bank decided on a re-modelling exercise for a number of portfolios.
- The flexibility of the platform made this possible in a matter of weeks.
WHAT MAKES US DIFFERENT
IFRS9.NXT
- Built on the latest technology supported by a data streaming and micro-services architecture.
- Enables users to run calculations, simulations and what-if analysis in minutes on large data sets.
- Includes out-of-the-box model methods for construction of forward-looking Probability of Default (PD), Loss Given Default (LGD) and Exposure of Default (EAD) curves.
- Can be implemented in weeks rather than years.
- Empowers Risk and Finance Users to make changes to the configuration via the intuitive User Interface.
"Today’s Technology allows Financial Institutions to run what-if analysis on the fly and present results in no time. Given the current economic climate and in line with upcoming regulations, this is no longer a nice to have but a crucial strategic element."
- Matthias Coessens, Managing Director Europe - ElysianNxt
About ElysianNxt
ElysianNxt is a Belgian-Thai RegTech company focused on providing the best real-time Risk and Finance solutions. By using cutting edge technology, it enables financial firms to respond in a faster and more cost-effective manner to business, economic and regulatory changes. ElysianNxt has offices in Brussels, London, Bangkok and Jakarta. www.elysiannxt.com
About us
ElysianNxt is a fast-growing RegTech company focused on developing the most technologically advanced, user-friendly, real-time Risk and Finance solutions. Comprised by seasoned industry veterans and subject matter experts, the company was established to provide an alternative solution to the traditional, outdated, monolithic applications that the financial industry is accustomed to in their quest to automate their back-end financial calculation obligations.
Contact Information
BELGIUM
Cantersteen 47, 1000 Brussels, Belgium
+32 2 896 58 71
THAILAND
29/1 Piya Place Building, Tower B, 11th Floor Unit 11E, Langsuan, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, Thailand
+66 2 255 2281
Contact Information
INDONESIA
Equity Tower, 49th Fl., Unit B, C, F Jl. Jendral Sudirman Kav. 52-53, SCBD District Centre, Jakarta Selatan 12190, Indonesia
+62 21 2965 1260