IFRS 9, an important focus point for the Multi Finance Industry
15 Nov 2018
On Thursday 15 November 2018, the Indonesian Financial Services association APPI (Asosiasi Perusahaan Pembiayaan Indonesia) held their annual conference “Seminar Nasional Peluang & Tantangan Tahun 2019” at the Ritz Carlton hotel in Jakarta.
The different speakers from the members of the association as well as the Financial Regulator OJK discussed the challenges that await the Multi Finance sector in Indonesia for 2019. One of the recurring topics was the implementation of PSAK 71, the Indonesian equivalent of IFRS9.
Multi Finance companies must adopt the standard, like the banking sector, in Indonesia by 2020 with a mandatory parallel run starting no later than end of June 2019. The company’s loans and leasing products are subject to the forward-looking expected credit loss calculations based on different forecasted macro-economic scenarios.
The increased interest in the IFRS 9 topic was also confirmed during an event organized by ElysianNxt’ Apac partner Inovasi Mitra Sejati on the 30th of October 2018. During a 2-hour live demo session of IFRS9.NXT, IMS’s existing clients could see firsthand how the intuitive IFRS 9 platform tackles the modeling, calculation and simulation requirements of the standard.
While Multi Finance companies may not have the same number of products or complexity compared to banks but the PSAK 71 reporting requirements are no different. Elysian’s IFRS9.NXT platform comes with a flexible setup and out-of-the box functionality around modeling, stage assessment and simulation. This makes it possible to get institutions live after an implementation cycle of a few months only, significantly reducing the total cost of ownership.
IFRS 9.NXT can be deployed on premise or as managed service in the cloud. The latter can be done by making use of a local cloud provider ensuring local data regulations are followed.