Empyrean Solutions, a leading provider of financial risk and performance management software, today announced the launch of Empyrean Model IQ™, a new behavioral modeling solution designed to help banks and credit unions translate customer behavior into forecastable, defensible cash flows by analyzing their own historical data.
Model IQ addresses data forecasting challenges by replacing one-time studies and black-box methodologies with transparent, institution-specific behavioral models that update over time and integrate directly into Empyrean’s risk and financial planning platform.
“Behavior, not balances, drives risk,” said Chris Maclin, CEO at Empyrean Solutions. “Model IQ gives finance and risk teams the ability to quickly adapt to changing market conditions with models they understand, control, and can confidently defend to boards, auditors, and examiners.”
Model IQ transforms a bank’s historical customer data into dynamic behavioral assumptions through guided workflows, automated calibration, and built-in documentation. The solution provides a centralized model library, clear audit trails, qualitative overlays, and seamless integration with ALM, CECL, and planning, eliminating manual exports, re-keying, and reconciliation.
The solution includes three integrated modules:
- Deposit IQ – Empirical modeling of non-maturity and term deposit behaviors, including betas, decay, stability, and a unique cannibalization analysis that distinguishes true funding growth from internal balance migration.
- Loan IQ – Instrument-level loan prepayment modeling with flexible segmentation, user-selected methodologies, and support for forecasting, stress testing, and scenario analysis.
- Credit IQ – Credit loss and recovery assumption modeling using peer data or institution-specific history, supporting both net charge-off, cohort loss rates, and PD/LGD methodologies.
Purpose-built for community and regional financial institutions, Model IQ enables teams to respond to market changes in hours not months, while maintaining full ownership and governance of their assumptions.
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