Challenge:
A top-10 bank required support in integrating a newly acquired West Coast bank’s commercial loan portfolio. The primary challenge was to evaluate the Fit For Use (FFU) of the existing risk models within this new, combined portfolio. This effort was crucial to ensure data consistency, accuracy, and alignment of risk predictors across the banks’ datasets.
Approach:
Our team collaborated with Data Management and Risk departments from both banks to conduct an in-depth analysis of existing data sources and risk models. We standardized and compared predictor data to identify inconsistencies and address potential issues. A strategic integration plan was developed and executed, focusing on data rationalization, integration, and harmonization to prepare the datasets for use with updated risk models and analytics.
Outcomes:
The initiative resulted in a unified and consistent dataset across all key model segments, including Commercial and Industrial, Commercial Real Estate, and Agriculture. This enabled the bank to utilize robust, validated risk models, ensuring a smooth portfolio integration and readiness for advanced risk analytics.
STAT:
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