Credit Risk Analytics & Reporting

Vector ML Analytics Provides Tools to Assess and Manage This Risk, Helping Banks Mitigate Losses and Comply With CECL and IFRS 9 Standards by Modeling Expected Credit Losses. With Advanced Analytics, Vector Supports Financial Projections for Loan Portfolios, Enabling Data-Driven Decisions and Optimized Credit Risk Strategies.

Request Demo
20+ Asset Classes
300+ Financial Models
SOC 2 Certified
hero-slider-0
hero-slider-1
hero-slider-2
hero-slider-3
PLATFORM FEATURES

Credit Risk Features

Comprehensive tools and analytics for enhanced financial management and decision-making

Cumulative Static Loss

Vector ML Analytics Provides Static and Dynamic Loss Analysis to Help Banks Predict Potential Losses and Assess Credit Risk. Static Loss Analysis Evaluates Historical Data to Establish Baseline Loss Rates, While Dynamic Loss Analysis Uses Predictive Modeling to Simulate Scenarios Like Economic Shifts and Borrower Behavior Changes. This Combined Approach Enables Banks to Assess Risk, Improve Forecasts, Enhance Stress Testing, and Optimize Risk Management Strategies, Equipping Them to Proactively Manage Potential Losses and Maintain Financial Stability.

Cumulative Static Loss Analysis

60-period historical loss forecast

MetricP1P2P3P4P5P6P7P8P9P10P11P12P13P14P15P16P17P18P19P20P21P22P23P24P25P26P27P28P29P30P31P32P33P34P35P36P37P38P39P40P41P42P43P44P45P46P47P48P49P50P51P52P53P54P55P56P57P58P59P60
Portfolio Value$475.0M$486.9M$499.0M$511.5M$524.3M$537.4M$550.9M$564.6M$578.7M$593.2M$608.0M$623.2M$638.8M$654.8M$671.2M$687.9M$705.1M$722.8M$740.8M$759.4M$778.3M$797.8M$817.7M$838.2M$859.1M$880.6M$902.6M$925.2M$948.3M$972.0M$996.3M$1.0B$1.0B$1.1B$1.1B$1.1B$1.2B$1.2B$1.2B$1.2B$1.3B$1.3B$1.3B$1.4B$1.4B$1.4B$1.5B$1.5B$1.6B$1.6B$1.6B$1.7B$1.7B$1.8B$1.8B$1.8B$1.9B$1.9B$2.0B$2.0B
Monthly Loss Rate2.51%0.10%0.12%0.12%0.11%0.11%0.11%0.12%0.12%0.12%0.12%0.13%0.13%0.12%0.13%0.13%0.13%0.12%0.13%0.13%0.13%0.14%0.13%0.14%0.14%0.14%0.14%0.14%0.15%0.14%0.15%0.15%0.14%0.15%0.15%0.15%0.16%0.15%0.16%0.16%0.16%0.16%0.16%0.17%0.16%0.16%0.17%0.16%0.17%0.17%0.17%0.17%0.17%0.17%0.18%0.18%0.17%0.18%0.18%0.18%
Cumulative Loss Rate2.50%2.55%2.60%2.65%2.70%2.75%2.80%2.85%2.90%2.95%3.00%3.05%3.10%3.15%3.20%3.25%3.30%3.35%3.40%3.45%3.50%3.55%3.60%3.65%3.70%3.75%3.80%3.85%3.90%3.95%4.00%4.05%4.10%4.15%4.20%4.25%4.30%4.35%4.40%4.45%4.50%4.55%4.60%4.65%4.70%4.75%4.80%4.85%4.90%4.95%5.00%5.05%5.10%5.15%5.20%5.25%5.30%5.35%5.40%5.45%
Monthly Losses$11.9M$0.5M$0.6M$0.6M$0.6M$0.6M$0.6M$0.7M$0.7M$0.7M$0.7M$0.8M$0.8M$0.8M$0.9M$0.9M$0.9M$0.9M$1.0M$1.0M$1.0M$1.1M$1.1M$1.2M$1.2M$1.2M$1.3M$1.3M$1.4M$1.4M$1.5M$1.5M$1.5M$1.6M$1.7M$1.7M$1.8M$1.8M$1.9M$2.0M$2.0M$2.1M$2.1M$2.3M$2.3M$2.3M$2.5M$2.5M$2.6M$2.7M$2.8M$2.9M$3.0M$3.0M$3.2M$3.3M$3.3M$3.5M$3.6M$3.7M
Cumulative Losses$11.9M$12.4M$13.0M$13.6M$14.2M$14.8M$15.4M$16.1M$16.8M$17.5M$18.2M$19.0M$19.8M$20.6M$21.5M$22.4M$23.3M$24.2M$25.2M$26.2M$27.2M$28.3M$29.4M$30.6M$31.8M$33.0M$34.3M$35.6M$37.0M$38.4M$39.9M$41.4M$42.9M$44.5M$46.2M$47.9M$49.7M$51.5M$53.4M$55.4M$57.4M$59.5M$61.6M$63.9M$66.2M$68.5M$71.0M$73.5M$76.1M$78.8M$81.6M$84.5M$87.5M$90.5M$93.7M$97.0M$100.3M$103.8M$107.4M$111.1M

Loss Metrics

Key metrics over 60 periods

Current Loss Rate

2.50%

→ 5.45% (P60)

Cumulative Losses

$11.9M

→ $111.1M (P60)

Portfolio Value

$475.0M

→ $2.0B

Loss Ratio

5.45%

Of Portfolio

Risk Analysis

Period 60 projected risk metrics

Risk Indicators

Static Loss Rate

Historical baseline

5.45%

Dynamic Loss Rate

Scenario-adjusted

6.27%

Stress Test Loss Rate

Worst case scenario

8.18%

Scale Your Lending,
Not Your Operations

Vector Transforms Financial Analysis by Delivering Actionable Insights for Profitability Optimization, Liquidity Management, and Risk Mitigation, Enabling Lending Institutions to Strengthen Financial Resilience and Strategic Growth.

300
Financial Models
+45%
Increased Accuracy
80%
Time & Cost Saving
40
Asset Classes
PUBLICATIONS

Publications

Stay Informed With Our Latest
Research and Articles.

Machine Learning Applications in Lending

As of 2020, the financial sector debt reached $66 trillion equal to 25% of the global debt. As the world gears up to fight the pandemic, the need to precisely analyze credit risk and price...

Read more

Automated Machine Learning

AutoML is the automation of ML algorithms and the structured design process of a defined model. It provides predesigned systematically structured data analysis tools that help banks...

Read more

Buy Now Pay Later

Buy Now, Pay Later (BNPL) offers consumers the ability to purchase immediately and pay over time, rapidly evolving from simple 'Pay-in-4' plans to diverse financial models and integrated apps. The sector, primarily funded by merchant fees and occasionally featuring interest or late fees, prioritizes market share over immediate profitability. As it faces stiff competition from both new entrants and traditional financial institutions, BNPL companies must innovate to maintain growth.

Read more

What is Credit Risk and Why is it Important?

The lender offers credit to a debtor, termed a borrower, based on trust in repayment. Credit risk emerges when there's a risk the borrower might not repay, leading to the lender not receiving the principal or interest, thereby incurring significant financial losses. Additionally, substantial costs are often incurred in efforts to recover the loan amount.

Read more

Financial and Regulatory Reporting

Financial regulations, such as Basel and IFRS 9, dictate capital requirements for institutions to ensure economic stability. Government regulators enforce these to prevent crises like the 2008 financial meltdown, which caused major disruptions due to major institutional bankruptcies. Trust in banks, fostered by these regulations, encourages public deposits, crucial for economic functionality.

Read more

Scorecard - Credit Engine

Credit risk scorecards provide quantitative estimates of the likelihood of customer delinquencies, such as bankruptcy or loan default, in relation to their credit status. We've developed a fast, automated credit risk engine to enhance decision-making efficiency. Upcoming posts will explore common ML models used in the consumer finance credit risk sector.

Read more

Prepayment Analytics

The Loan Portfolio Cash Flow Forecast & Analytics offers in-depth cash flow projections accounting for defaults and prepayments, essential for financial planning and interest risk management. It also supports Investor & Warehouse Securitization Reporting with comprehensive pool analysis and aids in Loan Pricing & Scenario Optimization to maintain a balance between profitability and risk.

Read more