Challenger bank automates monitoring on fintech-originated loan portfolios without affecting regulatory risk or burden.

Alterest delivered a platform for portfolio monitoring, reconciliations on nostro accounts and calculations via IFRS9-compliant impairment models.
Challenger Bank

Key Improvements

100% critical spreadsheets replaced

Loan-level look-through on a continuous basis

IFRS 9 impairment model computations

Regulatory compliance automation

Eliminated key-man risks

"We’re constantly searching for technology to ensure superior internal controls of risk management and regulatory compliance to keep up with our business expansion and we decided to implement Alterest to enable us to do exactly this."


Bank est. in 2014 embarked on a strategy to grow its loan book via 3rd-party lender partnerships. Alterest platform provided a technical interface for over a dozen lending platforms for loan-level and payments data, follow-on performance and risk analytics including impairment computations and look-through reporting.


With a rapid expansion of origination from 3rd-party, the bank needed to keep regulators convinced that it had a strong framework of governance with loan-level look-through and comprehensive controls.


Strong Governance Model and Internal Control Systems

The bank's choice has always been to automate processes and proactively look out for manual workflows to optimize. With Alterest, the bank has automated the centralisation of each and every loan and cash flow data point related to credit originated by third parties irrespective of their provenance. With complete granular historical information available instantly coupled with Alterest’s modeling capabilities, the bank has implemented tight data controls to assess the quality of each end borrower, and their payment trends and monitor performance on a cashflow level. This provides a complete loan look-through capability and an enhanced governance framework. Alterest enabled stringent monitoring of the underlying portfolio but also provided a way to identify, trace and rectify data quality issues.

Auditing and Continuous Regulatory Compliance

The Alterest feeds module enabled the bank to collate all raw data files received from counterparties in one view. Along with this, a continuous historical view is available due to Alterest’s ability to intelligently stitch together data irrespective of ongoing changes in the templates.

Auditors and stakeholders are able to get temporary access to the bank’s Alterest portal to examine the comprehensive control and historical status available at all times. Previously this took several hours of preparatory work and numerous back and forth between stakeholders and file attachments.


Automated Data Feeds, API and SFTP Ingestion

Feeds from borrowers and 3rd-party originators were automated via direct API and SFTP connections. This eliminated manual steps and errors in the data loading process and provided a platform for advanced analytics via Alterest’s managed data service.

Dedicated Support

Alterest’s dedicated customer support has augmented the platform’s rich capabilities with a domain-specific support team which proactively collaborates with the bank to expand the applicability of the platform within its business and ensure customer success.

IFRS 9 Impairment Model and Risk-Weighted Average (RWA)

Using Alterest’s modeling layer, the IFRS 9 impairment model was applied to look-through loan portfolios. Computations leading to the bank's risk-weighted average were integrated and automated considering all of the bank’s activities.

Key Improvements

  • 100% critical spreadsheets replaced
  • Loan-level look-through on a continuous basis
  • IFRS 9 impairment model computations
  • Regulatory compliance automation
  • Eliminated key-man risks

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