• Unsecured Lending

Unsecured Lending

The unsecured lending industry in South Africa comprises several niche lenders who provide loans and advances to mainly lower income clients. With the recent introduction of IFRS 9, lenders operating in this industry needed to revisit their existing provisioning methodology as the components of the Expected Credit Losses (ECL) model require specific behavioural and credit risk changes to be built into the credit models. Our team has the technical and practical competence to assist lenders with audit and advisory services related to this, including the key component of credit modelling.

Our services include the following:

  • Financial statement audits
  • Review of credit modelling methodology of the impairment models
  • Testing of the ECL models
  • Taxation, specifically new legislation in line with the Tax Laws Amendment Bill and new s11j provisions
  • Data integrity reviews of client systems to respond to input, processing and output data risks.