Allied Solutions Invests in Predictive Modeling With Acquisition

Allied Solutions announced the acquisition of a 50% ownership of the portfolio analytics software company Deep Future Analytics (DFA).

According to a combined statement from the organizations this week, Allied Solutions  acquired the 50% stake in DFA on Nov. 30, 2020. “This acquisition brings data access, insights and recommended actions to financial institutions that are considering leveraging analytics and predictive modeling to support their business optimization and risk management strategies,” the statement said.

Allied Solutions, a subsidiary of Securian Financial Group, Inc., is headquartered in Carmel, Ind., and is a provider of insurance, lending and risk management for financial institutions. In broad terms, according to the statement, DFA provides modeling software for forecasting and stress testing applications “that enables accurate and actionable information for portfolio management, account management, loan pricing and CECL” in a browser-based solution.

“We are really excited about this new acquisition,” David Hilger, Allied Solutions’ chief strategy and technology officer, said. He added, “Now more than ever, financial institutions need to quickly understand how changes in the economy or planning assumptions can impact their business. It’s vital to not look just backwards at reporting that tells you what happened, but to enable a proactive look forward at a range of options to make strategic decisions. DFA’s patented loan level models provide the foundation to understand portfolios and optimize pricing, risk mitigation and so much more. Integrating the DFA technology into Allied Solutions products and services will greatly enhance our value proposition.”

According to the statement, clients will be able to connect with an expanded data ecosystem and receive recommended actions based on select criteria and individual business challenges. “Suggestions on product diversification, sales strategy, collections, acquisition analysis and operational optimization, down to very specific needs like CECL compliance, make this a mission critical platform for enterprise analytics,” the statement said.

Joseph Breeden, CEO of DFA said, “Joining the Allied family makes a lot of sense for us, and we know that we can grow even faster and extend our reach to all credit unions and community banks in the U.S. At a time when having the closest thing to a crystal ball is invaluable, we know we can help the financial services industry navigate the road ahead. Allied is an outstanding partner to help us scale our data intelligence in a format that is actionable in real-time with real solutions that are ready to go, it’s the perfect combination.”