Model Modernisation

Clearer governance. Better decisions. Fewer workarounds.

Modernisation starts with a clear picture.
As regulatory expectations rise and internal demand for speed, control, and transparency grows, many firms are finding that patches, overlays, and undocumented logic no longer hold up to scrutiny.

Jaywing helps firms modernise their model estate, addressing inefficiencies, compliance risk, and technical debt without the disruption of wholesale replacement. Structural analytics, including capital, IFRS 9, stress testing, pricing, liquidity, and ALM, all benefit from a more resilient and transparent approach.

That process starts with a structured model health check.

What’s included in Jaywing’s model modernisation health check

 

  • Data and governance audit
  • MRM and validation review
  • Model inventory and logic review
  • Technology and infrastructure scan
  • Skills and compliance gap analysis
  • Prioritised roadmap

Whether you’re aiming to meet regulatory expectations, reduce the cost of validation, or improve model performance, the healthcheck provides a clear view of where to focus and how to make improvements.

Why model modernisation is a priority in 2025

 

  • Regulators are raising the bar on explainability, traceability, and lifecycle governance.

  • Internal validation and audit cycles are becoming more time-consuming and resource-intensive.

  • Manual workarounds and legacy logic are creating avoidable operational risk.

  • Models are increasingly misaligned with current data, infrastructure, and business use cases.

  • Maintenance costs are rising alongside supervisory scrutiny.

Jaywing’s four-phase approach

We structure each engagement around a proven framework:

Phase 1: Assess & design

  • Audit of data, governance, validation and infrastructure
  • Model inventory and compliance gap analysis

  • Target operating model and prioritised roadmap

Phase 2: Build & implement

  • Core model development or redevelopment (IRB, IFRS 9, Stress Testing)
  • Governance uplift, policy documentation, and validation

  • Proof of concept for deployment with TRAC

Phase 3: Enhance & optimise

  • Wider use of explainable AI models via Archetype
  • Lifecycle optimisation and automation

  • Skills training and internal capability building

Phase 4: Embed & innovate

  • Scalable model execution environments with TRAC orchestration

  • Continuous improvement pipeline

  • Strategic support for integrating analytics across the business

What model modernisation involves

Model modernisation is a structured review of how models are designed, built, governed, and deployed. It typically covers five areas:

  1. Data foundations and governance
    Assessing whether modelling inputs are accurate, available, and trusted. We review quality, ownership, and accessibility — including whether models rely on inconsistent definitions or siloed sources that weaken performance and transparency.
  2. Model design and development
    Reviewing whether the model logic reflects current needs rather than outdated assumptions. This includes complexity, forward-looking adjustments, documentation, and the ability to keep pace with business or regulatory demands.
  3. Validation and model risk management (MRM)
    Evaluating the robustness and independence of validation, the strength of challenge, lifecycle monitoring, and how well the MRM framework supports expectations such as SS1/23.
  4. Technology enablement and deployment
    Identifying where legacy infrastructure is slowing recalibration or creating reliance on offline processes. Modern orchestration platforms such as TRAC enable faster, more controlled deployment, automated governance documentation, and consistent execution.
  5. Regulatory compliance and fitness for purpose
    Ensuring models meet supervisory expectations across regimes (IRB, IFRS 9, Stress Testing), while remaining relevant internally. That means balancing sophistication with control, and ensuring governance frameworks hold up under review.

Key benefits

✅ Easier regulatory validation and audit readiness

✅ Clearer model logic and reduced reliance on workarounds

✅ Faster, more efficient model development and deployment

✅ Stronger governance and alignment with SS1/23

✅ Better integration with modern data and infrastructure

✅ Lower operational and compliance risk

✅ Analytics aligned with business decision-making and regulatory standards

Why Jaywing?

For over 25 years, Jaywing has supported leading banks and lenders across the UK with model remediation, regulatory engagement, and modernisation programmes. Our expertise spans IRB reaccreditation, ICAAP challenge, IFRS 9 redevelopment, and MRM uplift.

We combine deep regulatory knowledge with technology enablers, like Archetype (explainable modelling) and TRAC (orchestration), helping firms modernise effectively and sustainably. We know where models fail under scrutiny, and what it takes to fix them.

Start a conversation with Jaywing’s model experts

Our consultants work alongside your teams to identify practical, defensible improvements, whether you're tackling validation pressure, preparing for reaccreditation, or planning to strengthen your modelling estate for the long term.

Call: 0333 370 6600

Email: [email protected]