ALM Model Selection Guide
Capability Level Finder
Entry Level
Basic IRR measurement suitable for small, simple institutions with straightforward balance sheets.
Spreadsheet or simple vendor model
Intermediate Level
Comprehensive IRR toolkit for institutions with moderate complexity and growing sophistication needs.
Standard ALM vendor solution
Advanced+ Level
Full-spectrum ALM with formal verification, AI-driven insights, and regulatory-grade compliance tooling.
Stratus Financial Intelligence Engine
Benefits vs Costs — Model Complexity Curve (Exhibit 5)
Balance Sheet Influence Matrix
| Category | Repricing Risk | Yield Curve Risk | Basis Risk | Option Risk | Liquidity Risk | Credit Spread Risk |
|---|---|---|---|---|---|---|
| Fixed-Rate Loans | High | Medium | Low | Medium | Low | Medium |
| Variable-Rate Loans | Medium | Medium | High | Low | Low | Medium |
| MBS / CMO | High | High | Low | High | Medium | Medium |
| Investment Securities | High | Medium | Low | Low | Medium | High |
| Core Deposits | High | Low | Medium | High | High | None |
| Time Deposits | Medium | Low | Low | Low | Medium | None |
| Borrowings | Medium | Medium | Medium | Low | High | Low |
| Subordinated Debt | Medium | Medium | Low | Low | Medium | Medium |
| Off-Balance Sheet | Medium | Medium | Medium | High | Low | Low |
| Capital / Equity | Low | Low | None | None | Low | Low |
Why Stratus is Advanced+
OverCaml Formal Verification
Machine-checked mathematical proofs of every ALM calculation — no other vendor offers this level of model certainty.
ML Bond Buyer Prediction
Proprietary 9-dimensional journey analysis predicts which banks will buy bonds and when, with 87%+ accuracy.
Real-Time ALM Automation
Automated NII/EVE analysis with 8 shock scenarios, dynamic balance sheet projections, and instant regulatory reporting.
M&A Intelligence
Advanced predictive analytics identify acquisition targets and merger opportunities based on financial trajectory analysis.
Stratus delivers Advanced+ capabilities at Intermediate cost
Automated formal verification, ML-driven predictions, and real-time ALM analysis — features that traditionally require enterprise-tier pricing — are available to community banks of all sizes through Stratus.