Santa Fe credit risk research group Deep Future Analytics was awarded a U.S. patent in September for “a computer implemented method for estimating age-period-cohort models on account-level data” to help predict future bank loan performance.
The technology is used with Deep Future Analytics’ Current Expected Credit Losses services for its 200 small banks and credit union clients.
“It helps us forecast lifetime losses for loans,” CEO and founder Joseph L. Breeden said.
Current Expected Credit Losses is a 2016 updated federal accounting standard for banks stemming from the 2007-08 financial crisis.
Deep Future Analytics has used its technology since applying for the patent in 2013, Breeden said.
Breeden is CEO and founder of a second Santa Fe company, Prescient Models, which provides similar services to large banks.