THE PROBLEM

The bank was concerned about increased delinquencies in retail lending. They needed to: 

• Quantify the worst case scenarios,  for business as usual, pandemic or other stress environments
• Define management actions to control  delinquencies levels

Straterix’s analytical solution was applied in less than 2  weeks:

• Loaded bank-specific data, as well as data from the public domain
• Analyzed delinquencies’ patterns scenarios
• Trained the client on interpretation of lending segments behaviors

THE RESULTS

• Improved lending practices and reduced exposure to risky segments. The  bank’s overall exposure was reduced by 24% in adverse scenarios
• Unemployment and credit spreads-dependent triggers were identified, which would trigger management actions (‘early warning signals’)