A lending portfolio is a sequence of decision points. Each one can be made on judgement alone, or on evidence drawn from the portfolio's own performance history. StatDec develops both behavioural and application scorecards, all Basel III compliant, and supports the full project cycle — from data quality analysis and methodology design through development, implementation, validation and on-going maintenance.
The decision points we support
- Origination. Application scores predict the probability of default at the point of underwriting, combining application data, credit bureau reports and any existing relationship with the applicant.
- Cut-off and approval strategy. Cut-off tables and strategy curves quantify the trade-off between approval rate and loss rate, so the accept/reject boundary is a business choice rather than an assumption.
- Limit setting and account management. Behaviour scores drive limit management, renewals, cross-selling and credit assessment for existing customers.
- Collections. Behaviour scores are a key driver of risk segmentation in collections strategies, from early arrears through to write-off.
- Provisioning. ECL staging and lifetime parameters for IFRS 9, built on the same modelling base as the risk components.
- Capital. PD, LGD and EAD estimation and pool design under the IRB approach, with the documentation supervisors expect.
Services
Credit risk services for banks
Each engagement draws on one or more of the following. Most banking projects combine several.
Scorecard development & monitoring
Application and behaviour scorecards, customised bureau scores built on raw bureau data, and MetaScores that combine a multi-model environment into a single measure of risk.
Learn more ›Model validation
Independent validation of credit, IFRS 9, IRRBB and liquidity models, aligned with the ECB's revised Guide to Internal Models and the EBA framework — a third line of defence for institutions that need one.
Learn more ›Supervision: Basel & IFRS 9
Support for developing and implementing the IRB approach, allowing a bank to use its own estimates of risk for capital requirements, plus ECL and lifetime credit loss estimation for IFRS 9.
Learn more ›Risk management consulting
Reviews of credit initiation, account management and collections processes, credit policy alignment, profitability analysis, restructuring frameworks, and due diligence for risk management in M&A situations.
Learn more ›MIS specification & implementation
A centralised process to monitor the functional areas of the credit cycle and portfolio performance — delinquency and NPL trends, flow rates, vintage analysis, write-off and recovery tracking.
Learn more › NewAI Act readiness
Credit scoring for natural persons is a high-risk use case under Annex III. A structured framework covering data, features, outcomes, human oversight and Annex IV documentation.
Learn more ›Why StatDec
How we work with banks
- Compliance record. StatDec has assisted banks on IRB compliance projects since 2006 and on IFRS 9 implementation since 2016. Models developed by StatDec have been found compliant on every occasion they have been audited.
- Close working method. Delivery rests on cooperation between consultant and client — clear reporting channels, regular review meetings and a thorough verification process. Where a third line of defence is required, we act as an independent external validator.
- Regulatory alignment. Services are compliant with the BCBS framework, the CRD, the CRR, the EBA framework and, where relevant, the acts and guidance of local supervisors.
- No software to buy. Models are delivered in a form your existing systems can implement, with no licence and no platform lock-in.
- Knowledge transfer. Your team should understand the rationale, functioning and impact of every part of the credit cycle — not simply receive a score.
Discuss your lending portfolio
Tell us which decision point is under pressure — origination, limits, collections, provisioning or capital — and we will scope the work from there.
Get in touch