Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Expert roundtable of Leading European Bankers highlights challenges to bank credit models from the COVID-19 crisis

Leading European Bankers Highlight Covid Challenges to Bank Credit Models. On February 24th, 2021 the United Kingdom's Department for International Trade (DIT) and SPIN Analytics convened a Thought Leadership Roundtable to discuss the upheaval in Credit Risk Management with key players from Spain and Portugal's banking ecosystems (bankers, associations, management consultants and system integrators). The DIT and SPIN Analytics invited industry experts to share their experience, discuss the key challenges, and explore potential solutions.


News provided by

SPIN Analytics

Mar 03, 2021, 13:05 ET

Share this article

Share toX

Share this article

Share toX


LISBON, LONDON and MADRID, Mar. 3, 2021 /PRNewswire-PRWeb/ -- Leading European Bankers Highlight Covid Challenges to Bank Credit Models. On February 24th, 2021 the United Kingdom's Department for International Trade (DIT) and SPIN Analytics convened a Thought Leadership Roundtable to discuss the upheaval in Credit Risk Management with key players from Spain and Portugal's banking ecosystems (bankers, associations, management consultants and system integrators). The DIT and SPIN Analytics invited industry experts to share their experience, discuss the key challenges, and explore potential solutions.

Essential Takeaways from the Roundtable:

Credit risk is multidimensional, and a new generation of tools are required that integrate automation, statistical modelling, data science, AI, credit modelling knowledge, regulations, and, most importantly, human judgement and expertise.

Post this

*Credit risk management is the foundation of banking, yet it has never been more difficult. Banks were already under intense pressure to speed-up credit decisions and reduce costs without compromising risk management. The COVID-19 global pandemic introduced unprecedented market turbulence and government intervention and provided many examples of how naïvely extrapolating credit risk experience from the recent past to forecast the future is dangerous in a crisis. Expert human judgement proved critical.

*Banks have spent several years exploring the use of standardized statistical packages and machine learning tools for developing and maintaining Credit Risk Models, but the process remains manual, time consuming (up to 6+ months per model for regulated models), labor intensive, and costly (0.25-1 million € to build, plus more for maintenance). Each Bank uses hundreds or even thousands of models, requiring support from hundreds of internal experts across multiple functions.

*The pandemic highlighted how during a crisis, backward-looking models can quickly become out of date and dangerously inaccurate, or even fail entirely. By the time enough new data were available to rebuild the models, events had usually moved on once more. Unexplainable AI models and automation tools were not the solution: it was essential to supplement historical data with expert judgement.

*Faster, more accurate, more forward-looking credit risk modelling remains a priority, and digitization, automation and AI remain important components of any solution. However, the crisis has reinforced that credit risk management is about more than just historical data and statistical modelling. The next generation of tools for credit risk modelling must also integrate human judgement and credit experience.

Participants in the Roundtable included some of the biggest banks in Iberia Region:
Abanca, Bankia, BBVA, Millenium BCP Bank, Caixa Geral de Depósitos, ING Spain, Credibom, Crédito Agricola, Natixis, Barclays Portugal, Haitong Bank Portugal, Unicre – Instituição Financeira de Crédito, S.A., Eurobic Bank, kutxabank, Montepio and other ecosystem players like Accenture, Bluecap, APB - Associação Portuguesa de Bancos.
--------------------------------

Quotes:

"The Covid crisis highlighted the need for banks to accelerate the development of forward-looking models, including new sources of information. These sources include both internal information, such as transactional data e.g. related to credit card usage, or device-related information; as well as external, industry-related, or based on partnerships with 3rd parties. There are two main challenges to doing this - the time taken to incorporate and update new types of data and the willingness of the regulators to consider these new types of model."
Mercedes Morris Muñoz, Managing Director of GRM Retail Credit Risk, BBVA

"The Covid crisis has been extremely disruptive and Millenium BCP has been the leader in supporting the customers in Portugal. It is clear that all banks now have to work on improving and automating credit risk models to ensure those models are quickly adapted to new context and the information available."
José Miguel Pessanha, Executive Board Member and Chief Risk Officer, Millennium BCP Bank

"The Covid crisis has forced all banks to adjust for the moratoria granted to customers and to address the inadequacy of backward-looking credit risk models. At Caixa Geral we are incorporating new data including feedback from customer surveys and accelerating the digital transformation of our approach to credit risk modelling."
Vera Cardoso Santos, Deputy Director for Risk Management, Caixa Geral de Depósitos

"It is as much a question of what credit risk models can do for the data, as what data can do for credit risk models. Banks should stop dodging the lack of availability of data or budget and resolve data flows by working across business manager, credit risk modellers and IT."
Josep Nadal, Lead Partner for Financial and Risk Consulting in Iberia in Accenture

"Forward-looking models are essential to improving dynamic credit risk modelling, but many banks lack multi-disciplinary teams, accessibility of data and adequate governance around the modelling activity."
Antoni Vidiella, Partner at Bluecap Management Consulting by Globant

"The Covid crisis provided a dramatic illustration of why automated statistical modelling alone cannot solve the industry's problems with credit risk modelling. Credit risk is multidimensional, and a new generation of tools are required that integrate automation, statistical modelling, data science, AI, credit modelling knowledge, regulations, and, most importantly, human judgement and expertise."
Julian Phillips, COO and Head of Data Science at SPIN Analytics

"While Covid has given all of us a stressful last 12 months, one of its "silver linings" has been to highlight the need for banks to accelerate credit risk model development and updating incorporating new data, as many of the roundtable participants confirmed. Ever since we started building credit risk models over 25 years ago, data availability and cleansing has always been the major challenge to model building. Now that, as we heard, explainable AI technology can be teamed with credit experts, hopefully this challenge will soon be consigned to history."
Andrew Stott, formerly Head of Western Europe for Oliver Wyman and board member at BBVA, currently Senior Advisor to SPIN Analytics
---------------------------------

The Department for International Trade (DIT) is a United Kingdom government department responsible for striking and extending trade agreements between the United Kingdom and foreign countries, as well as for encouraging foreign investment and export trade.

SPIN Analytics SPIN Analytics helps regulated banks and other credit providers improve credit risk management with its next generation explainable AI-based platform, RISKROBOT™. To learn more, visit http://www.SPIN-Analytics.com.

Media Contact

Panos Skliamis, SPIN Analytics, +44 7778284864, [email protected]

SOURCE SPIN Analytics

Related Links

http://www.SPIN-Analytics.com

Modal title

SPIN Analytics
SPIN Analytics
SPIN Analytics

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.