Optimize your ACL, Integrate your Stress Test

Since the onset of the CECL standard, institutions have struggled to implement an effective, repeatable solution that they can understand. Many CECL solutions provide a complex black-box model. While the results may be sound, without a concrete handle on the functionality of the model, bankers will inherently distrust results and won’t allow integration into other critical functions.

The Invictus ACL service provides an open-book approach to CECL. We provide a compelling loan-level ACL result that you can easily recreate yourself. Once you’ve gained a comprehensive understanding of the model, we can begin to integrate into other components of the capital stack, or even into different products within this stack. Imagine a world where your stress testing and CECL models are one and the same!

Loan Profitability

Loan profitability has changed in the modern era. The Invictus loan profitability approach incorporates the results of your capital stress test, your ACL results, underwriting credit characteristics, and the macro-economic environment into a single profitability analysis. Furthermore, you can evaluate potential loans before they’re on your balance sheet. Does your pricing and profitability approach include these critical factors? If not, you could be putting unfavorable loans on your balance sheet!

PoWER – Weather Event Risk

Invictus has developed a simple suite of climate risk analytics that community banks can use as a starting point. These initial analytics will provide community banks insights into the physical risks their banks may face from climate change, as well as help launch valuable discussions in the boardroom and with bank examiners.