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Finevare

From IFRS Compliance to Credit Risk Analytics

Finevare is a platform for IFRS 9 and IFRS17 compliance in financial institutions developed by Deloitte Central Europe and backed by Deloitte worldwide.

Throughout the last decade the Finevare platform has developed a significant footprint in EMEA and has recently gained a global reach thanks to IFRS9 and IFRS17 engagements. As of today, several international FSI Groups entrusted their IFRS compliance to our software platform, and hence Finevare serves over 100 entities in more than 45 countries. Experience built on multiple implementation projects dealing with financial instruments accounting under IFRS9 and IFRS17 is embedded in the software and makes it robust, flexible and transparent for the end users. Finevare is designed to be a part of the enterprise. IT operational architecture that could fit both large scale financial transformation projects as well as focused IFRS 9 or IFRS17 implementations.

We are Finevare

Your bulletproof solution to IFRS 9 compliance
 

Deloitte can help you with a seamless implementation of out-of-the-box IFRS17 functionality, with possibility of easy customizations to reflect your needs. Finevare uses a proven and audited IFRS17 methodology – it is constantly verified and maintained by experienced team of actuaries, analysts and developers. Next to the portfolio valuation, Finevare offers an intuitive and easy forecast and planning functionality, covering automated & quick plan calculations, multiple plan versions, possibility of new production generation.  Additionally, Finevare offers extensive set of predefined IFRS17 disclosures and business reports that can be further customized.

Finevare Enterprise IFRS17 offers the following modules to the users:  

Insurance contracts valuation:

  • Implemented methods: GMM, PAA
  • Supports direct business and reinsurance held
  • Calculation of liability of remaining coverage – PVFCF, RA, CSM
  • Calculation of liability of incurred claims: FCF-LIC, RA
  • Insurance service result calculation
  • Calculation of the locked-in and market interest rate on group level


Cash-flows generation engine:

  • Generates cashflows based on CFs patterns and configured parameters
  • Allocation to Current and Future Service
  • Conducting of Onerous contract test for initially recognized insurance contract groups
  • Transformation of actual cash flows


Forecast and Planning:

  • Automated calculation of IFRS17 results for the prognosis dates
  • Automated generation of existing business runoff
  • Support of expected new business generation (automated or manual or uploaded)
  • Multiple versions of forecast & plan possible


Simulations and Reporting

  • Automated Sensitivity analysis process for IFRS17 disclosures
  • Possibility of multiple calculations to perform what-if analyses (based on different parameters or input data)
  • Out-of-the-box disclosures and reports
  • Easy customization of new reports


Accounting 

  • Generation of IFRS17 accounting postings/transactions
  • Verification and reconciliation of postings with IFRS17 module

    
Data Warehouse

  • Gathers input data for Finevare from other systems. Transforms, stores and transfers them to Finevare.
  • Serving as a datamart for these data

 

Your bulletproof solution to IFRS 9 compliance

Finevare Enterprise has a comprehensive coverage and can meet client’s needs in the areas of:

  • Classification including SPPI test 
  • Measurement under amortized cost, revenue correction due to impairment, calculation of Effective Interest Rate
  • Calculation of risk parameters (vector and matrix approach)
  • Segmentation
  • Calculation of Expected Loss and provisioning using collective and individual method
  • Business workflow support
  • Extensive reporting module

 

Ready-to implement IFRS 9 solution

  • Meets requirements for provisioning the system to conform with the IFRS 9 standard: 3 stages of impairment calculations, simulations, risk parameters, interest revenue correction, EIR and amortized cost calculations, relevant IFRS 7 disclosures, out-of-the-box charts and reports
  • Pre-configured “Model Bank” with best-practice setup provides a starting point for the customization and lowers deployment time

 

Comprehensive solution

  • Comprehensive, operationally proven solution, covering IFRS 9 calculations, simulations, automation, and process support for enterprises
  • N-tier software architecture, functions as a front-end enabled data mart
  • Integrates naturally into a data warehouse, General Ledger, and BI tools

 

User-friendly interface

  • Finevare is a user-friendly system with a modern and intuitive graphical interface, operated via a web-browser
  • Interactive charts for reports visualization, reporting wizard for ad-hoc pivot tables creation
  • Simple and easy to use configuration and administration of data sets, running reports, simulations, etc.

Rapid IFRS 9 calculation engine

 

fLITE is the solution developed by Finevare Quant Team for the purpose of modelling of IFRS 9 Expected Credit Losses. The solution is implemented in a novel analytical framework developed by Deloitte team called Finevare Analytic Toolkit (FAT). It allows for efficient development of new models (in project mode), including build of statistical models based on specific requirements of our clients. Our software leverages on experience built on multiple implementation projects dealing with financial instruments accounting under IAS39 and IFRS 9.

The fLITE platform provides IFRS 9 regulatory compliance, supporting the following functions:

Classification and measurement (C&M)

  • Classification based on SPPI test and input Business model
  • Initial valuation and subsequent measurement of financial assets
  • Effective interest rate calculation
  • Amortisation of fees and costs

 

Impairment (IMP)

  • Segmentation and stage classification on contract level
  • Impairment collective and individual calculations
  • Correction of interest revenue for impaired/POCI portfolio
  • STA engine calculating risk parameters based on historical data
  • Simulations of impairment under various conditions

 

General functions (Core)

  • Data load and validation
  • Configuration file load and export
  • Graphical User Interface for operation, administration and configuration
  • Correction of interest revenue for impaired/POCI portfolio
  • Tabular and graphical reporting
  • Generation of repayment cash flows

fLite | IFRS 9 Compliance Software

Get in touch

Please feel free to contact us in case of any questions about Finevare or if you would like to schedule a demo.

finevare@deloittece.com

IFRS 16 Leases: impact, challenges and solutions

A new standard IFRS 16 Leases, (originally issued in 2016 by the IASB to replace IAS 17 Leases), will become mandatory for annual periods beginning on or after 1 January 2019.

Aiming to bring more transparency to leases in companies’ financial statements, the new standard will not only impact finance and accounting but will also result in major changes in data processing and related processes.