Valiant is an independent Swiss financial services provider, locally rooted in 15 cantons and present throughout Switzerland with innovative digital services. Mortgage lending plays a central role in its business activities. To ensure effective monitoring of risks associated with financed properties, Valiant relies on data-driven analyses and continuous risk monitoring.
Long-Standing Collaboration with IAZI for Portfolio Monitoring
In addition to using hedonic valuation models in its lending process, Valiant has been working with IAZI for more than ten years to monitor its mortgage portfolio. Through the periodic revaluation of all financed properties, Valiant gains a comprehensive overview of market developments as well as valuable insights for portfolio management.
Valiant also relies on IAZI’s models and data for sustainability and CO₂ reporting. Since the beginning of its reporting activities, the bank has used IAZI’s Energy and CO₂ Calculator to estimate the financed emissions of its mortgage portfolio. This provides transparency regarding the energy performance of financed properties and forms the basis for defining a decarbonization pathway. The established collaboration and the continuous maintenance of the underlying data create a strong foundation for further analyses across a range of areas.
Expanding into Nature-Related Financial Risks with CLIMADA Technologies
As regulatory requirements continue to increase and climate- and nature-related risks gain importance, nature-related financial risks have become a growing focus for Valiant. The bank has therefore set the objective of systematically analyzing its mortgage portfolio’s exposure to natural hazards, identifying the materiality of such risks, and assessing their future development using data-based methods.
To address this new challenge, IAZI leverages the data and expertise of CLIMADA Technologies. CLIMADA Technologies is a leading provider of climate risk modelling and quantification solutions. The company supports among others financial institutions, insurers, and public organizations in better understanding the impacts of natural hazards and climate change, enabling informed decision-making. CLIMADA Technologies’ solutions make it possible to analyze both current risks and their future evolution under different climate scenarios.
Together, IAZI and CLIMADA Technologies conducted a new analysis of Valiant’s mortgage portfolio. The analysis examine the exposure of financed properties to natural hazards and climate risks, both today and in the future, taking into account different climate scenarios. In addition, it quantifies the potential expected losses resulting from climate-related events such as floods and storms. This provides Valiant with a solid basis for risk management, compliance with regulatory requirements, and strategic decision-making related to climate- and nature-related financial risks.
"Thanks to the analysis of our mortgage portfolio using CLIMADA Technologies’ solution, we are able to refine our existing assessments of natural hazard and climate risks and support them with well-founded, data-driven modelling."
A key advantage of the solution lies in its straightforward implementation. Relevant climate risk data from CLIMADA Technologies was integrated into IAZI’s existing infrastructure. As IAZI already acts as the bank’s data processing partner, the analysis could be carried out efficiently and without the need for complex additional interfaces.
"The collaboration with both partners has proven highly successful. IAZI supports us in a targeted manner to ensure that we can integrate CLIMADA Technologies’ data into the existing IAZI cockpit according to our needs and derive the greatest possible value from it."
Strong Collaboration for the Future
The collaboration between Valiant, CLIMADA Technologies, and IAZI demonstrates how data-driven real estate and climate risk analyses can be combined to effectively address new requirements, identify future developments at an early stage, and further strengthen risk monitoring in mortgage lending. Having all relevant data available in one place provides a holistic and integrated view of risk.
Sustainability analysis of mortgage portfolio
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