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Business Planning Model
- Client: Specialist Mortgage Lender
- Project Length: 2-3 Months
- Personnel: Associate Partner + Consultant
Background
Due to the volatility of the current mortgage market, business planning for secured lenders has become increasingly iterative and frequent
To try and meet the demand for such numerous model refreshes, a UK mortgage lender’s business planning model had grown into a network of linked Excel files, making the planning process inefficient and difficult to execute. This made the ability to run scenarios particularly challenging, and requiring different, complex input sets from numerous business functions
Our client needed an agile, simple and singular model, that allowed management to understand directionally the impact of business strategies and initiatives
Bespoke Planning Model
The Vestigo team worked closely with the Financial Planning & Analysis (FP&A) team to build a six-year business planning model
The core financing structure of the model sought to emulate how the lender funded their portfolio, through the securitisation of existing and future assets. Allocation of assets to securitisations in the new model (and eventual portfolio sales) could be controlled through a comprehensive set of levers, allowing management to accurately replicate and test multiple business strategies
On top of the core business planning capabilities of the new bespoke model, the resultant scenarios are now used by our client to create FCA required wind-down scenarios. All inputs, levers and variance analysis results are contained within a single model, creating a single source of truth for the FP&A team and the business as a whole
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