Capital Planning & Stress Testing (CPST)
Elevating Decision-Making Through Proven Data Insights
As trusted solution providers with 30+ years of experience in financial modeling, strategic planning, and business model optimization, we’ve launched expanded services and software built specifically for financial institutions to meet regulatory needs and empower better, data-driven decisions.
Business Challenges Solved
Be Ready Before Growth Demands It
As growth accelerates through organic expansion, mergers, acquisitions, or a combination, institutions face increasing complexity and regulatory pressure. Now is the time to prepare. CPST provides the strategic insight and tools leaders need to stay ahead of challenges, seize opportunities, and navigate growth with confidence.
Our Approach
Guiding Your Growth with Data, Strategy, and Expertise
1.
Start Early
Preparing for growth starts with getting the right data in place. We help you gather, organize, and validate the hundreds of data points needed for strategic decision-making and regulatory readiness.
2.
Prioritization
We take a focused, project-managed approach to help you move forward without getting overwhelmed. Our team helps you prioritize what matters, organize the work into manageable steps, and stay on track.
3.
Creating Roadmaps
We help create roadmaps to establish priorities and processes, serving as a guide for your data warehouse initiatives.
4.
Scenario Modeling
We combine quality data with powerful financial modeling software to conduct a variety of scenarios including both the Fed stress test scenarios as well as idiosyncratic scenarios to ensure your institution remains prepared and proactive. As part of the modeling, we build both primary and challenger predictive models using your institution’s historical data and market dynamics to gain deeper insights.
5.
Forward Looking Insight
We simulate your institution’s future ALM profile and capital plan outcomes under a wide range of interest rate environments, using every rate combination experienced over the last 75 years. These dynamic projections provide a powerful view into how your strategies may play out, helping you refine your business model, optimize decision-making, and go beyond compliance toward long-term success.
6.
Strategic Alignment and Board Readiness
We don’t stop at running scenarios, we translate complex outputs into actionable insights that align with your strategic goals. Our process prepares your leadership team and board to confidently engage in capital planning discussions, make informed decisions, and clearly communicate your institution’s resilience and direction.
7.
Regulator-Ready Documentation
We provide clear documentation of modeling assumptions, methodologies, and results, tailored for regulatory and board audiences so you’ll have what you need to confidently demonstrate the integrity and strategic relevance of your capital planning process.
8.
Institution-Specific Focus
While others may lean on peer group averages, our modeling is rooted in your institution’s unique data, structure, and strategic direction. From credit and deposit behavior to income and expense assumptions, we align our work with your actual performance and future plans, giving you more meaningful, actionable results.
FAQ
Additional Insights
What is CPST, and why is it important for institutions over to start early?
Capital Planning and Stress Testing (CPST) is a strategic exercise designed to evaluate how your institution’s capital and business model would hold up under various economic conditions. For institutions nearing or exceeding the $10 billion threshold, strong CPST practices are essential for meeting evolving regulatory expectations and demonstrating sound risk management to your board, regulators, and stakeholders.
Our approach goes beyond checking a regulatory box. We provide decision-useful information to support capital planning, business model optimization, and forward-looking strategy.
What makes your CPST approach different from others?
We combine decades of experience with advanced predictive modeling. Unlike a one-size-fits-all approach, we:
- Use competing predictive models to determine the best-performing options for your data set.
- Make it easy to incorporate models with management expectations or strategy-based views.
- Customize scenario assumptions based on your actual history, markets, and strategic priorities.
- Provide hands-on support to integrate the CPST process into your broader risk and strategy framework—not just an annual compliance task.
How do you incorporate predictive modeling?
Our CPST service uses primary and challenger predictive models tailored to your institution’s historical data and macroeconomic factors. These models are developed for critical areas such as:
- Loan and deposit volumes, balances, and rates
- Prepayment and withdrawal/migration speeds
- Non-interest income and expenses
- Emerging risks not yet visible in historical data
This allows for more informed planning and deeper insight into potential risks and opportunities.
What data do you need from us to get started?
It all begins with your historical data. Ideally, we’ll partner with your team to map and structure it so it not only supports analysis and decision-making but also meets regulatory reporting requirements. This process includes:
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Identifying and addressing data gaps that could affect compliance
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Mapping data into a standardized structure aligned with regulatory expectations
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Supporting your team in setting up systems to ensure ongoing data quality and regulatory readiness
Do you support management-defined or idiosyncratic scenarios?
Yes. We work with your team to design institution-specific idiosyncratic scenarios that capture your unique economic engines, market exposures, strategic priorities, and evolving risks. These complement regulatory scenarios with insights tailored to your business model.
