The team’s work with YouLend has earned us a spot on the shortlist for Excellence in Credit Risk Modelling at the 2025 Credit Awards.
This was a first-of-its-kind project for both teams. YouLend provides unsecured finance to SMEs via a revenue-based repayment model, meaning finance repayments fluctuate depending on merchant sales performance. That flexibility makes it a powerful financing product but presents significant challenges when it comes to estimating ECLs for IFRS 9.
To overcome this, Jaywing built one of the UK’s first IFRS 9 models for an embedded finance platform where repayments are directly linked to vendor turnover. The entire model framework was developed and deployed within just two months, ready for year-end implementation.
Key achievements from the project included:
- Accounting for seasonal sales cycles, early renewals, and irregular cash flows
- Adapting YouLend’s origination models for in-life impairment use
- Handling non-standard default definitions, replacing traditional 90-day delinquency markers with alternative indicators
- Collaborating closely with YouLend, ensuring the model was both compliant and commercially effective
Since implementation, YouLend has found additional value in the model, using it to support renewal decisions and enhance internal risk forecasting.
Jaywing’s approach centred on proportionality, speed, and business relevance, demonstrating that high-performing models can be built for emerging lending models without compromising technical rigour.
We’re proud to see this work recognised. It was a tough brief, a tight timeline, and a brilliant example of what strong collaboration can achieve.