The post-covid "new normal" has broken the models Banks use to understand credit risk: economies, markets, businesses and consumers all behave very differently than they did when the models were built. Banks need to rebuild hundreds of models, but, with each model taking up to 9 months, a much faster and more efficient solution is urgently needed.
However, automation alone is not enough - generic machine learning tools looking for statistical patterns in historical data just speed-up the process of getting the wrong answer.
RISKROBOT™ by SPIN Analytics is a new approach which combines Expert Judgement with Artificial Intelligence (AI) and Machine Learning (ML) techniques on Big Data, to produce predictive analytics which are accurate and relevant for making credit decisions and managing risk. RISKROBOT™ supports all types of credit risk models (decisioning, BIII/BIV RWA, IFRS9/CECL, stress testing) for all types of retail and commercial products and portfolios. It is encoded with all current Credit Risk Regulation and decades of experience so that human experts are augmented - not replaced.
With RISKROBOT™, financial institutions can now:
RISKROBOT™ key technological components will help you: