703.342.0040 | Contact | Customer Login
bank stress testing

Credit Analytics & Stress Testing


All models, all scenarios, all assumptions, all results on one platform integrated with downstream accounting and reporting capabilities

EVOLV enables financial institutions to efficiently execute advanced risk analytics through a controlled and scalable platform, which brings together data and models from all lines of business, addressing data management challenges and closing the gaps between model development, model execution and reporting. These capabilities have been used in the market in support of complex, enterprise-wide processes such as regulatory bank stress testing.

Financial institutions have been focusing on improving their modeling capabilities in response to regulatory pressures, such as stress testing mandates under CCAR and DFAST, or due to more active portfolio management. However modeling is only one part of the equation. The other, often forgotten but equally challenging part, is the overall execution process. Many financial institutions employ more than one model and the results of those models must be used by other groups.

Banks attempting to perform exercises, such as stress testing, suffer from inefficiencies in executing their models, translating results into financial forecasts, aggregating results into enterprise views, run multiple what if scenarios, and satisfying the various regulatory reporting requirements.
EVOLV is a centralized platform, with the ability to host, execute and report on a wide range of models with added capabilities to dynamically scale hardware / infrastructure to enable maximum efficiency. In addition, EVOLV is delivered with a proprietary model set (independently validated) with varying degrees of complexity to meet the needs of financial institutions of all sizes.
EVOLV is the only solution in the market with out-of-the box capabilities supporting bank stress testing, including the following:

  • User-Defined Scenario and Execution Framework
    • A "Cohort Developer" allowing users to segment the loan portfolio by risk and accounting characteristics and using those cohorts to assign different models, assumptions, and scenarios.
    • A "Scenario Manager" allowing users to define multiple scenario runs such as varying positions, economic assumptions, dials, run dates, discount rates, etc.
    • An "Execution Center" allowing users to define multiple executions, save executions, and manage executions.
  • Reporting and Analytics
    • Detailed Reporting on all runs with drill-down capabilities to loan level
    • Ad-hoc Reporting
    • Run Comparisons
    • Attribution Analysis
    • Sensitivity Analysis
    • Automatic Mappings to DFAST and CCAR templates
  • Loan Modeling - EVOLV Models
    • Multinomial logistic delinquency transition model for residential loans
    • Age-period-cohort loss model for CRE loans, built with our partner Prescient Analytics
    • Econometric default and prepay model for auto loans
    • Econometric “top-down” macroeconomic sensitive loss models for all loan types
    • Basic cash flow models supporting both loan-level contractual cash flows and expected cash flows
  • Loan Modeling - Bank Models
    • Ability to securely and efficiently house a financial institution’s internal and/or third party models of all levels of sophistication that would enable them to execute uniformly and leverage the reporting capabilities and interfaces with EVOLV's other solutions.
  • Specific Bank Stress Testing Capabilities
    • Manage assumptions and data in a controlled and auditable way
    • Innovatively support new business forecasting using varied parameters
    • Host  models of all levels of sophistication and execute them in a scalable and controlled yet flexible manner
    • Translate model output to forecast results, both from the economic view and the accounting view

Users are able to segment their portfolio across models and apply different credit and stress assumptions via the user interface. This flexibility eliminates the constraints of having to do multiple runs and the manual work of then aggregating those results in spreadsheets. Version control is also easily manageable since modelers, analysts and credit managers utilize the same system to upload models, execute forecasts and analyze results through our comprehensive suite of reports. EVOLV’s data architecture and industry-leading reporting tool (within EVOLV SMART Data) means reports are also easily configurable to include specific data attributes along with the reporting results desired by your institution. The reporting tool enables efficient, detailed migration and trend analysis.  Unique to EVOLV is the depth of integration between risk and finance attributes resulting in a single system to allow financial institutions to easily track risk management processes, support quality control and audit requirements.

Ultimately, EVOLV enables financial institutions to fill the gap between modelers and the business users of model outputs for loans of all types in a scalable, controlled and integrated solution.

For more information call us at 703-342-0040 or Contact Us.


All models, all scenarios, all assumptions, all results on one platform integrated with downstream accounting and reporting capabilities

EVOLV enables financial institutions to efficiently execute advanced risk analytics through a controlled and scalable platform, which brings together data and models from all lines of business, addressing data management challenges and closing the gaps between model development, model execution and reporting. These capabilities have been used in the market in support of complex, enterprise-wide processes such as regulatory bank stress testing.

Financial institutions have been focusing on improving their modeling capabilities in response to regulatory pressures, such as stress testing mandates under CCAR and DFAST, or due to more active portfolio management. However modeling is only one part of the equation. The other, often forgotten but equally challenging part, is the overall execution process. Many financial institutions employ more than one model and the results of those models must be used by other groups.

Banks attempting to perform exercises, such as stress testing, suffer from inefficiencies in executing their models, translating results into financial forecasts, aggregating results into enterprise views, run multiple what if scenarios, and satisfying the various regulatory reporting requirements.
EVOLV is a centralized platform, with the ability to host, execute and report on a wide range of models with added capabilities to dynamically scale hardware / infrastructure to enable maximum efficiency. In addition, EVOLV is delivered with a proprietary model set (independently validated) with varying degrees of complexity to meet the needs of financial institutions of all sizes.
EVOLV is the only solution in the market with out-of-the box capabilities supporting bank stress testing, including the following:

  • User-Defined Scenario and Execution Framework
    • A "Cohort Developer" allowing users to segment the loan portfolio by risk and accounting characteristics and using those cohorts to assign different models, assumptions, and scenarios.
    • A "Scenario Manager" allowing users to define multiple scenario runs such as varying positions, economic assumptions, dials, run dates, discount rates, etc.
    • An "Execution Center" allowing users to define multiple executions, save executions, and manage executions.
  • Reporting and Analytics
    • Detailed Reporting on all runs with drill-down capabilities to loan level
    • Ad-hoc Reporting
    • Run Comparisons
    • Attribution Analysis
    • Sensitivity Analysis
    • Automatic Mappings to DFAST and CCAR templates
  • Loan Modeling - EVOLV Models
    • Multinomial logistic delinquency transition model for residential loans
    • Age-period-cohort loss model for CRE loans, built with our partner Prescient Analytics
    • Econometric default and prepay model for auto loans
    • Econometric “top-down” macroeconomic sensitive loss models for all loan types
    • Basic cash flow models supporting both loan-level contractual cash flows and expected cash flows
  • Loan Modeling - Bank Models
    • Ability to securely and efficiently house a financial institution’s internal and/or third party models of all levels of sophistication that would enable them to execute uniformly and leverage the reporting capabilities and interfaces with EVOLV's other solutions.
  • Specific Bank Stress Testing Capabilities
    • Manage assumptions and data in a controlled and auditable way
    • Innovatively support new business forecasting using varied parameters
    • Host  models of all levels of sophistication and execute them in a scalable and controlled yet flexible manner
    • Translate model output to forecast results, both from the economic view and the accounting view

Users are able to segment their portfolio across models and apply different credit and stress assumptions via the user interface. This flexibility eliminates the constraints of having to do multiple runs and the manual work of then aggregating those results in spreadsheets. Version control is also easily manageable since modelers, analysts and credit managers utilize the same system to upload models, execute forecasts and analyze results through our comprehensive suite of reports. EVOLV’s data architecture and industry-leading reporting tool (within EVOLV SMART Data) means reports are also easily configurable to include specific data attributes along with the reporting results desired by your institution. The reporting tool enables efficient, detailed migration and trend analysis.  Unique to EVOLV is the depth of integration between risk and finance attributes resulting in a single system to allow financial institutions to easily track risk management processes, support quality control and audit requirements.

Ultimately, EVOLV enables financial institutions to fill the gap between modelers and the business users of model outputs for loans of all types in a scalable, controlled and integrated solution.

For more information call us at 703-342-0040 or Contact Us.

bank stress testing How to Execute a Dodd Frank Act $10–$50B Stress Test BMO Harris Bank – Turning Stress Testing into a Competitive Advantage Solutions 5 bank stress testing Dodd-Frank Regulations Require Banks to Use More Flexible Loan Valuation Systems

CASE STUDIES

EVOLV is market tested and proven for all sizes of banks and for all loan products. EVOLV has been architected to "fit" within your structure to address your specific gaps. There are likely many aspects of your institution that are working effectively and therefore should integrate with EVOLV or you may elect to utilize EVOLV meet all of your needs. Either way, the good news is that EVOLV can be molded in a manner that is the best solution for you. See below some case studies of financial institutions that implemented EVOLV in support of their stress testing processes:

Global Financial Institution with ~$100b of Loan in the U.S. Required CCAR Support  Learn More

A ~$100b multi-national financial institution which doubled its size in the U.S. through strategic acquisitions became a CCAR participant upon completion of its most recent acquisition. The bank implemented EVOLV in support of their purchase accounting needs and quickly realized they would need support for both DFAST and CCAR stress testing for their acquired portfolios. Primatics implemented the Stress Testing module and supported the bank in both their mid-year DFAST and year end CCAR submission process. The bank was able to gain tremendous efficiencies by leveraging the EVOLV platform which already housed all of their data for the acquired portfolios. The execution of the modeling and generation of the associated pro forma accounting results were seamlessly integrated into their overall stress testing process.

$15b Financial Institution Needs DFAST Stress Testing Capabilities  Learn More

A $15b financial institution that has grown significantly through both organic and acquisitive strategies was now required to satisfy regulatory stress testing requirements under DFAST. The bank implemented EVOLV for the purchase accounting and other specialty loan accounting items, and now wanted EVOLV to apply stress testing capabilities to the loans already in EVOLV. Primatics implemented this feature and enable the bank to run its DFAST process leveraging EVOLV's stress test models with complete integration to the pro forma accounting results and template creation process.

$8b Financial Institution with High Growth Ambitions Seeks to Perform Stress Testing  Learn More

A high growth $8b financial institution looked to upgrade its overall risk and finance systems infrastructure to accommodate for enhanced capabilities that would enable it to execute its growth plan with defensible compliance. The institution needed purchase accounting and other specialty loan accounting capabilities, more advanced and automated reserving / TDR capabilities, new stress testing capabilities, and overall reporting and analytical needs. EVOLV was implemented over various phases to address all these needs. The bank is now in a position to continue its growth strategy, to comply with the increased regulatory scrutiny, and to make better decisions with increased analytics on its loan portfolio.

How Can We Help You EVOLV?

Simply fill out this form, and we'll contact you to see how we can help.

All fields marked with an asterisk (*) are required

< input name="_marketo_comments" type="text" value="" />