News & Views / Redwood signs for Echelon: Jaywing's commercial credit scoring software
26 October 2022

Redwood signs for Echelon: Jaywing's commercial credit scoring software

Specialist lender, Redwood Bank, will use Echelon, our SAAS risk technology framework, to process credit applications and apply consistent credit scoring approaches to businesses applying for loans.

Designed for commercial lenders, Echelon is Jaywing’s Commercial Credit Scoring software with built-in flexibility. Echelon has been tailored to provide a bespoke solution for Redwood Bank. Jaywing has also provided the Bank with expertise in risk modelling.

Redwood Bank was ‘born in the cloud’ in 2017, with its forward-thinking infrastructure helping it achieve one of the fastest ‘licence-to-launches’ in UK banking history. Having started with a team of 12, the Bank now employs more than 125 employees.

The Bank announced this year that, despite the pandemic, it had recorded a pre-tax operating profit of £2.2 million in the year to December 31, 2021. It reached this milestone by continuing to offer vital lending support to British businesses during the various COVID-19 lockdowns, when many other mainstream lenders retrenched.

Echelon enables clients to process commercial credit risk applications faster, securely and with greater consistency, while gathering and storing data to enable a cycle of continuous learning and improvement. Using an ‘expert model’ approach to risk assessment, Echelon assigns a configurable Probability of Default (PD) and Loss Given Default (LGD) based on the underlying predictive data. The system keeps track of the models in place over time, ensuring that there is always a record of the data that was captured, together with the scores and model estimates.

Nevan McBride, Risk Practice Director at Jaywing, said:

“Through the use of Echelon and other proprietary tech and consultancy services, new banking and even fintech lenders can upscale fast and reach profitability quicker. Doing so relies on implementing tools that offer a level of consistency and surety into their commercial decision-making processes and beyond. Redwood Bank already had a sharp vision of their future growth plans with a key focus on enhanced credit risk management. Through clear communication, the right technology and in-house expertise, it’s been a pleasure working with such a forward-thinking organisation.”

Rajesh Khosla, Chief Risk Officer at Redwood Bank, said:

“At Redwood Bank, it’s important that we have a strong control environment to meet the needs of our business while looking to enhance our credit risk management processes. That’s why it’s so important that we rigorously assess our suppliers to ensure they meet these high standards. The Jaywing team has delivered a highly tailored solution that meets our specific needs and worked incredibly well with our risk teams, proving to be a very valuable partner for our future growth.”