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Ben O'Brien

Managing Director

Jaywing

Member since

11 Nov 2015

Location

London

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Ben's opinions

12 lessons in predictive modeling for enhanced credit risk assessment

Modern credit risk management now leans significantly on predictive modelling, moving far beyond traditional approaches. As lending practices grow increasingly intricate, companies that adopt advanced AI and machine learning gain a sharper edge in understanding and managing risk. Below, my colleague Nick Sime, Director of Fraud & Credit Risk M...

07 November 2024 /ai

Unmasking the invisible: Confronting hidden fraud risks in finance

While many financial institutions have implemented robust prevention systems, less obvious vulnerabilities often remain unaddressed. These overlooked weaknesses create prime opportunities for sophisticated criminals, especially as financial crime increasingly shifts to online and social media platforms. The current state of financial fraud Recent ...

01 November 2024 /crime

The PRA's SS4/24 and Basel 3.1 IRB: What firms need to know

UK banks face significant changes to regulatory capital requirements under the Basel 3.1 framework. The PRA’s recent publication, PS9/24, sheds further light on these changes but also brings new challenges for firms working to meet compliance standards. In this post, we’ll focus on the IRB part of the ruleset, detailing the essential steps firms ne...

31 October 2024 /regulation

DCA redress: Key steps for motor finance firms post-landmark ruling

With the FCA’s ongoing investigation into Discretionary Commission Arrangements (DCAs) and pivotal updates expected in May 2025, a recent Court of Appeal ruling has further shifted the balance in favour of consumers. On 25th October, the court declared the use of 'undisclosed commission' in motor finance contracts unlawful. This landmark ruling wil...

31 October 2024 /regulation

Data storytelling in Financial Services: Turn insights into action

Numbers have always been crucial for measuring success. From revenue figures to profit margins and customer acquisition expenses, these numbers guide critical decisions. Yet, today, the challenge remains in creating stories that can shift these numerical dials. It's about taking complex datasets and turning them into narratives that drive real cha...

15 October 2024 /predictions Analytics in Banking

AI risk modelling: Managing compliance and ethical considerations

As financial institutions increasingly integrate AI, they encounter the challenge of unlocking its potential while ensuring compliance with regulatory requirements and ethical standards. In this post, we'll review regulatory expectations, share strategies for building transparent and fair AI models, and cover the importance of robust governance and...

26 September 2024 /ai /regulation

PS9/24: Key changes when implementing Basel 3.1 rules

On 12 September 2024, the Prudential Regulation Authority (PRA) issued PS9/24, marking the second part of the near-final ruleset that addresses credit risk, the output floor, and Pillar 3 disclosures. These rules were accompanied by supervisory statements on Internal Ratings-Based (IRB) approaches and the definition of default. The PRA also release...

19 September 2024 /regulation

APP fraud reimbursement regulations: How PSPs can prepare

The message is clear: Payment Service Providers (PSPs) will soon be required to reimburse victims of Authorised Push Payment (APP) fraud up to £85k. In this post, we explore the upcoming changes, examine how fraudster behaviour is evolving, outline what lenders need to do to comply with the new regulations, and discuss ways to protect vulnerable cu...

05 September 2024 /regulation /crime

AI vs. traditional risk modelling: A closer look at accuracy and efficiency

The gap between AI and traditional risk modelling is substantial. Traditional models often fall short when dealing with complex, non-linear relationships. In contrast, AI models thrive in detecting these patterns, providing more precise risk predictions. Risk managers are now at a crossroads: stick with the tried-and-true traditional methods or emb...

03 September 2024 /ai

Balancing AI innovation and model risk: Insights from SS1/23

Recently, the UK Government called upon key regulators—including the ICO, FCA, and Bank of England (which incorporates the PRA)—to outline their strategic approach to Artificial Intelligence (AI). In response, the Bank of England highlighted various existing regulations that demonstrate its capacity to supervise AI. Notably, SS1/23 featured prom...

28 August 2024 /ai /regulation