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What would be the ideal way to develop the IFRS9 ECL model for startup fintech when there is no historical data.

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    $\begingroup$ This is more of an educated guess than an actual answer, I may be completely off track - take this at a discount: I would identify and quantify my targeted clientele („EUR <region> retail: x %, EUR <Region> corporates y %...“) and I would then buy default data / credit histories / model parameter from data vendors. Another idea could be to reach out to companies that offer outsourcing for risk models / model estimates, at least during the initial phase of your product. $\endgroup$ May 12, 2021 at 6:06

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According to the regulations of IFRS 9, the valuation for the ECL is not permitted exclusively on the basis of historical values. (For example, IFRS 9.B5.5.17). The inclusion of macroeconomic data and the economic environment is also desired. Similar companies can also be included in the valuation.

I hope this answers your question.

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