By Steve Turner, Managing Director, Jonathan ‘Wes’ West, Managing Director and Kaushik Deka, CTO, Novantas.
Although regulator-driven at the outset, quantitative thinking is now firmly in the DNA of many banks. As a result, many are struggling to manage hundreds of models that require an increasing number of resources. Novantas believes that such model management can become more efficient by using sophisticated technology, including machine learning, to automate the process.
A growing number of banks are already using a “factory” approach for managing their models, but the process is still daunting and demands a significant amount of technical expertise. New approaches address this growing need for oversight, inventory management, and maintenance (see Figure 1).