IFRS 9 Replacement Case Study


The Journey


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 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.


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.

2017 - 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.
The selection process
  • 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.
A successful implementation
  • 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.
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.


Project Timelines
2017 - 2018
First IFRS 9 implementation
Early 2020
Previous license up for renewal
January 2020
IFRS 9 Implementation with ElysianNXT
February 2020
IFRS 9 replacement go-live
Early 2021
Remodeling project
  • 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

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