The Modern Analytics
Banking and financial services

Where the model that cannot be explained does not ship.

Building an analytics function from zero at a commercial bank, and earlier at JP Morgan Chase across risk and finance.

What is different here

Banking has had model governance for decades, which is an advantage and a trap. The advantage is that nobody has to be convinced that a model needs an owner, a version and a review. The trap is that the existing framework was written for models that do not generate text, and applying it unchanged either blocks everything or waves everything through.

What usually needs fixing

The function is built before the demand is understood

A team is hired, a platform is bought, and the queue of requests turns out to be reporting rather than analysis. Starting from zero is easier than fixing an operating model that already has defenders.

Risk and finance disagree about the same number

Two functions, two definitions, both defensible, and a leadership meeting that starts with reconciliation rather than a decision.

Explainability is asked of the model rather than the decision

The useful demand is an explainable decision, and the two are not the same thing.

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