Credit Risk Analytics


Credit Risk Scorecards provide financial institutions the information needed to rank order accounts based on their likelihood of default, a critical process that helps minimize portfolio losses, minimize delinquencies and maximize profitability by making more accurate lending decisions.

The proactive identification of borrowers’ risk helps financial institutions make more accurate and profitable lending decisions, set credit limits and put in place proactive strategies to reduce losses, reduce collection costs and minimize write-offs.

Strategic Analytic Solutions offers Credit Risk Modeling and Risk Scorecards development services to help financial institutions improve the accuracy, efficiency and productivity of risk management operations with benefits across several areas:

  • HIGHER INTEREST INCOME: Improved loan decisions with the development of applicants’ scorecards that introduce accuracy and speed in the loan review process.
  • IMPROVE CAPITAL EFFICIENCY: Capital Adequacy modeling services th achieve better alignment between a financial institution’s capital reserve requirements and its risk weighted assets (RWA),
  • MINIMIZE LOSSES: Reduce charge-off losses with the deployment of Credit Risk Scorecards that help determine spend limits for credit applicants.
  • IMPROVE OPERATIONAL EFFICIENCY: Reductions in operational costs through improvements in staff productivity in the credit review process, account pre-screenings, loan reviews, credit limits and collections recovery.

Our custom Credit Scoring development process leverages advanced statistical modeling and Machine Learning algorithms to develop risk scoring models unique to each institution to better capture and understand the risk and opportunities in their loan portfolios.

Credit Risk Analytics

Leverage Credit Risk Scorecards to identify loan ‘red flags’, reduce losses and grow profits.

Deposit Profitability Modeling

Predictive Models to forecast the stability and profitability of deposit levels across time.

Capital Adequacy

Know the Capital Reserve requirements needed to survive unexpected credit losses.

ALM Modeling

Measure the impact of changes in interest rates on NII, NEV, capital adequacy and profitability.