FRAIMX LLC is a financial services consulting firm with expertise in a variety of banking disciplines. FRAIMX founders leverage their 50+ combined years in the banking industry across multiple banking practices & continents, to help clients optimize risk exposures, increase profits, and spur growth. We strive to help our clients along the entire banking value chain, from modeling and pricing to portfolio management, with the understanding that the financial world is ever changing.
CECL & ALLL
Current Expected Credit Losses (CECL) is one of the most significant changes to hit the financial services industry in over a decade. Coupled with the fact it impacts one of the largest P&L line items for financial institutions, Allowance for Loan & Lease Losses (ALLL), you have a new regulation which impacts all levels of management and touchs multiple departments within a firm. A firm's CECL transition will impact institutions’ capital levels, financial reporting, and have major implications on data, modeling, & reporting requirements. Further, a firm's current strategy and portfolio composition will result in certain CECL impacts that must be taken into account.
Fraimx leverages it's banking experience to help firms simplify the CECL transition by providing:
- CECL Gap Assessment - Customized gap analysis, identifying pain points in your firms transition to CECL and a clear roadmap to achieve CECL compliance
- SIMPALLL Platform - All in one Cloud Based CECL & ALLL Workbench, helping firms assess, develop, and enhance their loss reserve processes end-to-end.
AML & KYC
Financial institutions are continuously facing increased scrutiny on Anti-Money Laundering (AML) and Know Your Customer(KYC) issues. Implementing a robust and compliant AML and KYC framework is crucial to your organization understanding and verifying who your firm is transacting with, identifying potential suspicious activity, and protecting your firm and customers from potential criminal and fraudulent activity:
Fraimx offers customized program assessment, design, and implementation:
- Policy & Procedure Gap Assessment - Identify your framework's weakpoints and understand the path to remediation
- Information and analysis - Best practices for a risk based approach to collecting and analyzing your customers behavior and assigning customer risk
- Monitoring and Reporting - Monitoring and reporting framework to identify and investigate potential AML issues
- Transition Services - Fraimx can help scope, guide, and monitor the transition to 3rd party AML/KYC services
Fraimx offers a wide range of modeling services for banks and financial institutions. We help clients manage thier model landscape, mitigate their model's limitations, and optimize their risk models.
Our services include:
- Custom Model Build: Using our clients data, we build custom models to suit their business needs
- On Going Performance Monitoring (OPM): We help clients track the on going effectiveness of their models and help them establish clear and concise process & procedures for tracking the performance of their models
- Model Validation: Validation services cover all types of risk models and provide actionable insights into potential model weaknesses and limitations
Pricing loans can be a complex challenge, no matter what the financial product. Coupled with additional complexities of competition, market volatility, and an evolving technological landscape, ensuring maximum returns can be challenging. Whether its maximizing net interest margin on a prime portfolio, or looking for additional levels of risk separation on a subprime portfolio, Fraimx helps firms identify and understand the levers to pull for increased profitability.
We enhance our clients’ decision-making and risk profile by:
• Identifying segments of opportunity on a portfolio via capture rate sensitivity
• Reducing adverse selection
• Helping shape business strategy via pricing
• Leveraging latest technology and data to provide increased risk separation
Sound Risk Management extends beyond governance and compliance. It includes oversight of an institution’s strategy, safety & soundness, and often times includes partnering and guiding the firm’s business units to help move the firm forward in a positive direction. Fraimx works with clients to bring risk-reward perspective to strategic decision making and day-to-day operations of their firm. Understanding and balancing profitability with regulatory expectations and overall risk appetite of the firm is essential for management of all financial institutions
Fraimx specializes in enhancing risk management practices at institutions through:
• Risk Culture Assessment and Framework
• Risk Appetite Statement Build out
• CCAR Consulting
• Risk Governance Assessment and Framework
Portfolio Management encompasses an end to end understanding of a companies loan portfolio, from originations and bookings, to performance and servicing. Ultimately, every loan originated will touch a firm's P&L. Too often firms conduct analysis and reporting on their portfolios without tying back to the bottom line, sometimes overlooking pockets of opportunity within the portfolio. Fraimx consultants have managed large loan portfolios for the nations largest financial institutions across auto, mortgage, credit card, personal lending, and student debt. By leveraging knowledge learned managing these portfolios, Fraimx helps firms:
• Set up originations tracking
• Key Risk Indicator (KRI) & Key Performance Indicator (KPI) limits
• Performance and Profitability Analysis including segmentation and vintage
• Servicing and Operations reporting
Digital Banking & FinTech
Financial Technology has evolved dramatically in the U.S. over the last decade. Traditional banking services are no longer offered by just banks, and the technology available to financial service firms and consumers has changed dramatically. Mix in the regulatory complexity of the U.S. financial markets and you have one of the most innovative and challenging sectors in the world. Fraimx consultants have experienced the financial technology shift first hand, even designing an all digital banking road map for a leading financial institution. FinTech Services include:
• Regulatory guidance and structuring
• Digital Strategy
• Competitive Analysis
• Product Development