Custom Portfolio Risk Optimization
This visualization shows the actual changes in total delinquencies from the first engine we built. This credit union had escalating delinquencies driven by their auto portfolio. With our changes, they saw improved delinquencies in one year, just prior to COVID, and continued improvement from there.
Currently, this multi-billion dollar credit union has one of the lowest delinquency ratios in its peer group, with approximately 60% auto decisions.
CDFI Misery Rate Improvements
This Credit Union had an escalating misery rate, which exceeded 3% combined. Our rule set was installed in Q2 2025 and the credit union saw rapid improvement despite traditional seasoning requirements due to increased growth from the engine.
In just over 1 year, their misery rate fell 0.75% and they saw little change in their CDFI low income concentration (74%->72%) and they currently maintain a top 5% net interest margin!
Performance Matrix
Quantitative analysis of portfolio risk optimization and charge-off projections.
Custom Portfolio Risk Optimization
We provide you with heat mapping across credit scoring tiers built on historical repayment behavior as it relates to other key decision metrics. By aligning risk boundaries directly with your specific asset size and delinquency tolerances, the engine isolates profitable credit bands that generic LOS templates miss.
Predictive Charge-Off Analysis & Seasoning Timelines
Our models provide approximate charge-off ratio projections based on simulated rule sets. Note: For full realization of optimized portfolio metrics, typically requires an 18 to 24+ month seasoning period to allow new loan volume to mature and legacy risk portfolios to naturally run off.
Complete Executive/Board Package
We will proivde you with the full analysis so you can share with your executive team and board the methodology utilized to come up with the ruleset for the decision engine. Additionally, we provide talking points around automated denials and why they actually help your membership.
Automated Decisioning Efficiency & Oversight
By transitioning to customized engines, credit unions typically realize a 40-60% increase in automated Underwriting while simultaneously strengthening compliance and risk oversight through mathematically consistent decision frameworks.