Credit & Lending Operations for a Major Banking Merger
Interval supported a high-profile US bank merger by leading the credit and lending integration -ensuring compliance, consistency and control across risk modelling, governance and underwriting. The result: a seamless integration delivered under tight timelines and complex regulation.
Situation
As part of a major merger between two large US banks, a global advisory firm was engaged to oversee the integration of credit and lending operations. Given the regulatory complexity and critical nature of these functions, the integration required deep subject matter expertise across:
End-to-end credit and lending processes
Underwriting, credit risk management, modelling and validation
Regulatory compliance with IFRS 9 and CECL
Governance frameworks and SOX reporting
Integration strategy and risk control environments
To meet the demands of the engagement—valued at $1.6m—the advisory firm required an experienced, independent consultant to lead the credit and lending integration and provide strategic recommendations throughout.
Approach
Interval was engaged to provide a CFA-qualified subject matter expert with a background in mathematics, accounting, and deal advisory. The consultant was tasked with leading the integration across three interconnected workstreams:
Credit risk policies, procedures and underwriting standards
Credit risk modelling and validation, including allowance reporting under IFRS 9 and CECL
Governance framework integration, up to Chief Risk Officer (CRO) level
The engagement also involved identifying adjacent areas for improvement, such as stress testing frameworks, capital adequacy calculations, reporting enhancements, and control environment optimisation.
The SME quickly integrated into the advisory team, led a team of seven consultants, and worked with stakeholders across both organisations to ensure alignment, compliance, and knowledge retention throughout the merger process.
Outcomes
The credit and lending integration was delivered on time and to scope within six months, enabling the $190m bank merger to proceed smoothly. Key deliverables and outcomes included:
A unified underwriting process and aligned credit risk policies for commercial and consumer lending
A new credit loss modelling solution to support allowance reporting and regulatory compliance
A refreshed governance structure providing leadership continuity and reduced redundancy
The SME also identified and scoped a follow-on phase focused on creating a robust, integrated control environment through data cleansing and standardisation, and designing a model risk monitoring framework for long-term assurance.