IFRS 9 (Banking) | UK

Making complex IFRS 9 models, easy

Hampshire Trust Bank has been delivering tailored finance solutions to its customers for many years, helping them to expand their wealth with care and expertise. As such, the bank has earned its status as “the specialist bank in business and personal finance.”

One business area which was becoming increasingly important to the bank was its mortgage portfolio. Not only did this portfolio contain buy-to-let and bridging products, it also boasted a mixture of term lengths for corporate and individual customers. But as the diversity of the portfolio continued to grow, so did its complexity.

Scorecards in the spotlight

The diverse nature of its mortgage portfolio had also left Hampshire Trust Bank with limited outcome data, particularly when it came to scorecards. It was becoming increasingly difficult to build scorecards using traditional methodologies.

The bank already had an expert, in-house team of underwriters at its disposal. But, to truly address the issue, an objective and repeatable process was needed. That’s where 4most came in.

Specialists working with specialists

Like Hampshire Trust Bank, we’re proud to call ourselves “specialists” at 4most. We understand the importance of maintaining a deep understanding of the markets we work in, and we immediately put our knowledge to work.

The idea was simple: if we could provide Hampshire Trust Bank with the kind of objective and repeatable process that key stakeholders were looking for, then they could use our combined knowledge to create enhanced scorecards with ease.

These enhanced scorecards would characterise risk while also having the ability to adapt to changes in strategy. Additionally, we ensured that these scorecards could be converted into compliant IFRS 9 models within tight regulatory timelines.

“We required more robust and dynamic IFRS 9 models aligned with the niche lending we underwrite. 4most’s expertise and Knowledge Elicitation Process achieved the desired results.”

Adil Dhanani Head of Credit Risk Modelling, Hampshire Trust Bank

Focus, where it mattered

With our objective process, we helped Hampshire Trust Bank achieve three key outcomes:

The confidence to make reliable expert judgements.
The ability to build enhanced scorecards.
The skills to generate trusted IFRS 9 models.

These new models have now been implemented throughout the bank, helping to characterise risk within the specialist mortgage portfolio and providing an additional boost to efficiency.

The solution is also much more future-proof than it was before. The models are statistically robust and maintainable upon any changes in risk or strategy, giving Hampshire Trust Bank complete control over its mortgage portfolio for years to come.

Can 4most support your organisation in a similar way? Let us know how we can help you by completing our short contact form.