Crisis Response

Banks’ response to the recent crisis has brought a sharper focus on optimizing capital, improving profitability, managing liquidity and containing credit losses.

To do so, banks require a quick, automated analytics platform for dynamic model building as well as executing models for various scenario and what ifs, especially in the current situation of high macroeconomic uncertainty.

Credit Modelling

Addressing your current urgent need

Post Covid 19 business and macro economic environment demands rapid recalibration of models to forecast losses and estimate capital. Our platform enables faster response to address critical credit modeling challenges

• Banks may need to partially/fully strip out the effects of emergency measures (such as ‘lockdown’ or interest waivers/emi holidays) from the models they use to forecast risk and losses.
• Check if models have flattened out i.e. models have lost their discriminatory power vs. shift in model curves
• Recalibrate models used for credit risk monitoring, loss provisions, capital and portfolio management in the current environment
• Conduct What if/Scenario testing for credit losses using dynamic scenario forecasts
• Examine the credit risk of key customer segments to analyze the segments that have experienced significant impact versus ones with moderate impact

AutoML driven credit analytics platform to accelerate the model calibration and build process in post Covid-19 scenario covering credit loss (IFRS 9/CECL), recovery and capital (IRB) models

Model Automation

Institutions need to respond rapidly to current dynamic business and macro environment. Existing analytics platforms are not helpful in current environment since it uses legacy technologies to manage models, which is expensive, proprietary, fragmented, and resource-intensive, resulting in an extremely long model life cycle.

We have a track record of delivering a 50% time and cost reduction in risk and finance model life cycle by enabling an end to end model automation with a 5-10X improvement in performance.

Let us explore how we can work together to help you achieve the same benefits our other customers have realized, especially now when it matters most.

Dynamic B/S Modelling

An integrated Balance Sheet analytics framework to address post Covid 19 balance sheet modelling requirements to support new strategies, budget, plan in context of increased regulatory and management reporting requirements

• Determining the adequate level of liquidity buffers required to continue renewals of revolving credit lines and support planned extensions of credit
• Assessing impact of multiple severe macroeconomic scenarios on NII, liquidity and funding profile through forward looking projections (PPNR) using revised business plans
• Recalibrating early warning indicators and risk appetite limits to pre-empt difficult situations and take necessary management actions with respect to funding and liquidity
• Frequently monitor key metrics such as deposit run-offs, volatility, deposit rollover, refinancing rates, limit utilization, delinquency levels, funding spreads, average funding tenors to assess health of the balance sheet
• Ability to model multiple macro scenarios, customer behavior patterns and Bank responses in an integrated manner covering all balance sheet risks