Case Study: Bringing production quality methods and controls to the quarterly impairment allowance created a fully compliant allowance process that reduced cycle time and resource needs by 80%.
Several analyst teams at a Top 10 bank spent four weeks each quarter estimating the company’s consumer loan impairment allowance, which represents capital to be set aside for expected losses on the bank’s $100 billion loan portfolio. Manual, spreadsheet-based processes were labor-intensive and error prone, leading to delays and reduced confidence in the results.
With these issues contributing to audit findings and potentially tens of millions of dollars in excess allowance, the bank reached out to us to reimagine the execution of loss forecasting models to produce an impairment allowance that was accurate and well-governed.
Click to learn more about our approach and the results it drove.