Empyrean Solutions has launched Model IQ™, a new behavioral modeling solution designed for financial institutions, the company announced Monday. The platform aims to provide scalable servicing for complex credit structures and supports a wide range of loan types.
According to a press release, Model IQ™ is intended to address the increasing competition banks face from private credit providers. PwC recently published analysis outlining strategies for banks to compete in this evolving landscape, highlighting the need for innovation in credit modeling and risk assessment.
The launch comes as analysts are increasing their 2025 loan growth estimates, following better-than-expected results in the second quarter of 2025, according to S&P Global. This positive outlook may create further demand for sophisticated modeling tools like Model IQ™.
Non-bank financial institutions are increasingly reliant on banks for contingent credit, particularly during times of stress, a recent report from the Centre for Economic Policy Research (CEPR) indicates. This reliance has consequences for both sectors, potentially impacting risk management and stability. Model IQ™ could offer tools to better understand and manage these interconnected risks.
Empyrean Solutions states that Model IQ™ supports the full range of loan types, offering financial institutions a comprehensive solution for behavioral modeling. The company did not specify the technologies underpinning the platform, but emphasized its ability to handle complex credit structures.
The launch of Model IQ™ follows a trend of financial technology firms developing specialized solutions for the lending market. The platform’s success will likely depend on its ability to deliver tangible benefits in terms of risk management, efficiency, and competitive advantage for its clients.
