Go to main content

More Information
+1 505-995-4720
Email

Strategic Analytics Launches TrueCapital™ Software

TrueCapital™ software is an economic capital application that addresses the unique modeling challenges found in retail lending. TrueCapital provides more accurate capital estimates because it can distinguish controllable from uncontrollable volatility in your portfolio. .

TrueCapital Product Sheet [pdf, 296k]

Santa Fe, NM | February 6, 2006 – Strategic Analytics (SA) announces the launch of a major new software product for the retail lending industry. TrueCapital™ software is a data-driven, portfolio-specific approach to computing capital for retail loan portfolios.

New Approach Yields Powerful Benefits

TrueCapital software breaks exciting new ground in its analytical approach and in the benefits it brings to lenders worldwide. It is the first capital analysis product for retail lending that can systematically distinguish controllable volatility from the uncontrollable volatility in a loan portfolio. This revolutionary result gives lenders the ability to hold capital for only uncontrollable impacts such as macroeconomic and competitive pressures.
In another first, TrueCapital leverages a proprietary form of distributional analysis to simulate future events for retail loans and the impact on individual portfolios. While Monte Carlo analysis is widely used in other sectors of the finance industry to measure risk, TrueCapital applies these concepts to the unique structures found in retail lending so that no a priori assumptions about distribution shapes are required.

Total US retail loan exposure is over $10 trillion and has grown rapidly for many years. With TrueCapital software, lenders now have a robust capital methodology that speaks directly to the distinctive characteristics of this important asset class across all product types, risk bands, and geographies.

TrueCapital Software and New Regulatory Capital Rules

The company's LookAheadTM software is already one of the leading solutions for retail portfolio stress testing requirements prescribed by Basel II. TrueCapital software leverages this stress-testing and forecasting paradigm to directly compute economic capital. By aligning capital calculations with front-line business forecasting, capital measurements become automatically integrated with management's strategic and operational plans. Joseph Breeden, President and COO of Strategic Analytics comments, "Regulators have been impressed with our approach. The applications of TrueCapital lie mainly outside of regulatory capital, but as Basel II compliance guidelines continue to evolve, we believe that TrueCapital software should be well received for regulatory compliance."

Strategic Analytics delivers innovative analytical software and services that enable its clients to build more profitable and less volatile portfolios. An increasing number of the world's largest banks and finance companies use Strategic Analytics' software for loss and revenue forecasting, stress testing, and economic capital. More than $750 billion in retail assets are being analyzed by Strategic Analytics' software including auto, credit cards, mortgage, home equity loans and lines, and several other loan types.
Top of page