120 Seconds with our Head of Data Science

120 Seconds with our Head of Data Science

We are proud of the passionate team of experts we have at 4most and we would like to share their motivations and thoughts on their specialist areas with you. This is the first in our series of ‘120 Seconds’, a question and answer session with Fabrizio Russo, Head of Decision Science.

Being the bigger robot: capitalising automation for better decision making

Being the bigger robot: capitalising automation for better decision making

Machine Learning has been one of the hot topics in finance over the last few years, with benefits observed in most areas – many large institutions have prototyped and implemented techniques across decisioning, strategy optimisation, and fraud. The other key area that Machine Learning can bring significant benefits to, is automation.



A recent Bank of England working paper highlights the link between banking market competition and financial system stability. Consistent with earlier work, it highlights that as competition increases, the banking system overall responds typically by moving to higher risk lending.  However, in addition, it describes how individual banks tend to converge with the most-risky becoming more secure as competition increases.


21 September 2018, London: 4most, the global credit risk consultancy, has appointed Alvin Ng as their new Chief Financial Officer (CFO). Alvin joins from the UK arm of the Weston family’s private office, Galewest Investments Ltd, where his role spanned strategic tax planning and global private assets management. At 4most, he will be responsible for directing and managing all aspects of the finance function and will be a key component in 4most’s leadership team.

RegRadar: 4most bring you the latest news from the credit risk industry

Welcome to the first edition of RegRadar. With publication of Basel III reforms in December 2017, the ongoing EBA RWA harmonisation programme and both the BoE & the ECB consulting on the Definition of Default for credit risk, forward planning and timely implementation is key to understanding how reforms will impact capital and compliance costs of current and future business plans.

IFRS 9 Impairment Models - A regulatory cost or a business opportunity?

The financial services industry has recently undergone a major change due to the introduction of IFRS 9 impairment requirements. This has come generally at increased costs due to either the redirection of internal resource or engagement of third parties to develop compliant models.

Calculation of IFRS9 Expected Credit Losses with Discounted Cash Flows

IFRS9 Expected Credit Losses (ECL) are commonly calculated as the sum of the marginal future expected losses in each period following the reporting dateusing PD, LGD and EAD components. ECL can also be calculated directly from expected future cash flows. This could be an attractive option for many short-term lenders, especially for those that cannot leverage existing PD, LGD and EAD models, as it requires developing a single cash flow model.

Has the expansion of car finance overstretched borrowers?

Over the past decade, there has been a significant shift in patterns of consumer behaviour in relation to purchasing of new cars. UK private car registrations were 39% higher in 2016 than they were in 2011, a trend which has in part been driven by the expansion of the Personal Contract Purchase (PCP) deals. Some 82% of private new car purchases was financed in this way in 2016. PCPs contribution to the rise in unsecured borrowing is firmly on the radar of both the Bank of England (BoE) and Financial Conduct Authority (FCA).