New product for IFRS 9 compliance

RNS Number : 8083L

Jaywing PLC

06 October 2016

 

6 October 2016

RNS Reach

On behalf of Jaywing plc (JWNG)

Jaywing plc announces launch of new product for IFRS 9 compliance

LONDON UK - 21 September 2016 - Jaywing plc (LSE: JWNG)  Jaywing plc, a data science led marketing, analytics and risk management agency, is pleased to announce that it has launched a new product, Horizon, aimed at helping lenders meet IFRS 9 compliance requirements.

The new global accounting standard IFRS 9 requires lenders to adhere to a new methodology for the calculation of provisions from January 2018.  As retail credit risk and data science experts, Jaywing plc has been working with lenders on meeting the requirements of the new regulation since 2014, including eleven of the UK's leading financial services institutions.  Jaywing's expertise in this specialist field extends over many years and offers lenders skills that are difficult to find internally, elsewhere or at the necessary scale.

As the deadline draws closer, it is increasingly imperative that all affected lenders are in the process of switching to the new regulatory standard due to the requirement to run the new models in parallel with existing processes.  To help smaller lenders meet the regulation and larger lenders validate their models, Jaywing has encapsulated its extensive regulation experience and expertise into new product Horizon.

Horizon enables lenders to meet all aspects of the IFRS 9 impairment standard quickly and cost-effectively while supporting stress testing, ICAAP (Internal Capital Adequacy Assessment Process) and bad debt forecasting processes. 

IFRS 9 will be a significant change to the financial reporting of banks and other lenders and affects many stakeholders, including investors, regulators, analysts and auditors.  A high-quality and effective implementation of the standard will maintain confidence in the financial results of lending organisations.

Horizon deals with all aspects of IFRS 9 impairment modelling using feeds of a lenders' own data and macro-economic data.  The model engine, developed using machine learning and artificial intelligence, combines Probablity of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD) components to calculate life time Expected Credit Losses (ECL) under different economic scenarios.

It offers lenders a user-friendly interface to adjust the models to their individual requirements while providing the necessary transparency for all components of the solution.  More importantly, it affords lenders the opportunity to avoid lengthy and expensive projects or significant ongoing maintenance overheads while still meeting regulatory requirements by the deadline.

Martin Boddy, Chief Executive, Jaywing plc, said, "We're delighted to bring such an advanced product to the market. With eleven UK lending organisations using Jaywing for their IFRS 9 implementations and countless previous IAS 39, Basel, Stress Testing and other banking regulation analytics engagements, our expertise in this field is peerless. Our data science credentials and ability to manage and corral big data have enabled us to develop an accessible product for lenders least likely to have access to quality skills and experience in-house or even through contractor resource. 

"This is just one application of data science we've been able to bring to market and follows the introduction of our marketing product Almanac, which brings together online and offline, including structured and unstructured, behavioural data to deliver marketing applications such as highly personalised communications across channels including online display, email and direct mail; attribution modelling; abandoned baskets programmes; predicting lapsing customers and promotion econometrics.  This kind of advanced approach to data science is absolutely the future of business."

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Enquiries: Jan Gardner/Michael Sprot, Jaywing plc. 0114 281 1200

About Jaywing plc

Jaywing is home to over 600 of the best thinkers across creative, technology and data science, with over one in 10 of its employees a heavyweight data scientist.

Jaywing plc's recent results reported revenue of £36m (c. A$62m), Gross Profit of £31.8m and an organic increase in Gross Profit and adjusted EBITDA of 6% and 7% respectively with better than expected after-tax profit.

Culturally and operationally, Jaywing has a 'one company' strategy, rather than the traditional agency group model, and attributes its success with clients to this approach.

In July 2015, Jaywing indicated a desire to follow a low risk international growth strategy for distribution of its data science led products.  Its recent acquisitions of Bloom in the UK and Digital Massive in Australia are in service of the fulfillment of that strategy.

In March 2016, the company announced a major collaboration with Imperial College's Data Science Institute (DSI) to undertake a three-year research programme designed to measure, understand and predict people's emotional response to marketing stimuli that has been adopted into its creative methodology. The research involves the use of advanced technology, including the DSI's impressive Data Observatory facility and advanced neuroimaging kit.  In July 2016, the company furthered its academic links with a partnership with the University of Leeds to help deliver its new MSc in Consumer Analytics and Marketing Strategy course, bringing real life challenges to academic learning.

Jaywing works with a number of national and international blue chip clients, including Sky, Pepsico, 3M, Anytime Fitness, HSBC, Wedgwood, Castrol, Kempinski and Pandora.

 

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