bg-arrow-down icon-arrow-up icon-back-to-top icon-linkedin icon-menu icon-search icon-twitter logo-white slider-arrow-left-gray slider-arrow-left slider-arrow-right-gray slider-arrow-right

Rethinking the Modeling Ecosystem: A Modest Proposal

EXECUTIVE SUMMARY For banks in many countries the current model development and validation process is broken: it takes too long, there are too many nonstandard elements, there is too much rework, and it introduces material risk (“model risk risk”, if you will) when critical and time-sensitive models fail validation. It also costs an exorbitant amount relative to the benefit it provides to shareholders. In our experience, the major challenges underlying this are threefold: Developers must create an entire evaluation framework of analyses, stats tests, and assumptions under which to evaluate models before they can begin modeling Developers and validators focus ...

Read more

For more information, contact Novantas Marketing

+1 (212) 901-2772

Related Materials

novantas perspective

Canadian Lenders Need Model Overhaul Amid Stricter Mortgage Rules, Rising Rates

New Canadian mortgage rules have already unsettled borrowers and lenders, but banks can potentially mitigate the impact by overhauling models and taking advantage of enhanced analytics.

novantas perspective

Deposit Trends Are Deteriorating As Powell Makes First Move

The FOMC raises rates by another 0.25% and signals more hikes in the future, Novantas proprietary data makes it clear that the sands have shifted.

novantas perspective

Rates Rise As Client Behavior Is Shifting

In the early stages of the rising-rate environment, banks have been able to substantially lag rates across all lines of business.

Please enter your email for verification:

Full Name (required)
Title (required)
Institution (required)
Email (required)
Select Product (one required)

PriceTek Deposits
PriceTek Loans
PriceTek Mortgage
PriceTek Offer Engine
BankChoice Monitor

Phone Number (optional)
Description of Need (optional)