In order to ensure the continued strength of the banking sector, the recently introduced IFRS9, effective from 2018, requires that provision is made for expected credit losses within the accounts of banks that adopt international accounting standards.

Pravin Burra
Consulting Actuary

+27 82 336 1515

New Demands

This is done through a sound credit-risk assessment and a measurement process that together provide banks with a strong basis for common systems, tools and data. In addition, a bank needs to have policies and procedures in place to validate its internal credit risk assessment models appropriately.

As a result, the modelling demands placed on banks have increased, and will continue to do so. What’s more, these models need to be properly governed, and this includes appropriate levels of validation.

We have been a leading provider of actuarial and modelling services across Africa for many years. Having initially focused on insurance and pensions, the extension of our new service offering to the banking sector has been a natural development, given that our traditional actuarial skills are easily tailored to provide institution-specific analytical support and quality assurance.

Our banking services include:


We are able to assist with both the build as well as validation of all elements of IFRS 9 impairment calculation. As an accelerator we are able to offer a managed solution to ensure frictionless credit portfolio supervision. Our cloudhosted solution allows the near real-time calculation of common credit metrics without the complications of technology investment and management.


We offer the development and validation of credit scoring and associated predictive models. Because we understand that pricing optimisation offers one of the best upsides to retails banks, we know that the realisation of this value requires an ecosystem that extends from price-setting through to price execution and monitoring.


It is a fact of our digital world that consumers are becoming ever more used to personalised service with frictionless user experience. In tandem with this is the fact that the financial services sector has come under increasing pressure fromregulators as well as from the entry of growing numbers of competitors.

As a result, banks have had to step up their efforts to acquire more valuable customers, and once having acquired them, to increase their share of wallet through both cross- and upsell. This can only be achieved through the development of a customer-focused ecosystem including:
  • The development of a single view of the customer
  • Profitability analytics to identify sources of both opportunity and loss
  • Cross-sell analytics to support leads generation
  • Digitisation to improve fulfilment of positive customer demand.


At QED we provide risk management, model-build and validation services. With the detailed understanding that we are able to develop of the demand and opportunity presented by micro-segments within your customer base, our credit-risk service-offering in particular provides both governance comfort and competitive advantage.