Taking advantage of the latest advances in risk modeling and analytics is the impetus behind a new CUSO from Denali Alaskan Federal Credit Union.

The $500 million cooperative in Anchorage said it created Deep Future Analytics with the help of Prescient Models LLC, a Santa Fe, N.M.-based provider of analytical services for loan-level and portfolio scoring, forecasting, stress testing and economic capital.

Among the methods the CUSO will use for credit risk forecasting services are loan lifecycle effects at the product level, scoring attributes, environmental factors, age-period-cohort or vintage based analysis, forecasts at both the aggregate-portfolio and individual-loan levels and stress testing for economic scenarios.

“Deep Future's credit risk model has made roll rate- backwards looking loan loss analysis a thing of the past and the calculated loan loss estimate for our monthly Provision Expense entry is more precise,” said Eric Bingham, CFO at Denali Alaskan.

The CUSO's services will be available to both credit unions and community banks.

Prescient Models President/CEO Joseph Breeden said big banks are stuck in a legacy modeling structure that doesn't let them integrate across function or adapt to a changing environment.

“We want to enable credit unions to jump ahead in loan origination and account management while still being cautious through the downturns.  These are the best models I've seen — loan-level, forward-looking, scenario-driven, and technically precise,” Breeden said.

Prescient Models and Denali Alaskan are 50% ownership partners in Deep Future Analytics, both entities said.