The fintech that turned the dreaded bank stress test into a strategic instrument - using AI to generate the futures most models never think to check.
Straterix builds software that answers a question most financial institutions can only half-answer: what happens to us across the full range of futures the economy might deliver? Rather than lean on a single baseline projection, its platform uses machine learning, data mining and Monte Carlo methods to generate thousands of internally consistent economic and market scenarios - including the rare, correlated tail events that sink balance sheets and rarely appear in standard models.
From that engine, banks, insurers, pension funds and regulators can run stress tests, optimize capital and liquidity together, model asset-liability dynamics, and stress-allocate portfolios. The company's stated aim is to replace prediction with discovery - to stop guessing the one number the future will land on and start exploring the whole distribution of outcomes it might produce.
"Thrive amid uncertainty, leave no future unchecked."— Straterix, company mission
For most institutions, stress testing is a compliance chore - a handful of regulator-prescribed scenarios, run once, filed away. Straterix argues that same machinery, pointed the other way, is one of the most valuable planning tools a firm owns. Its founders compare the discipline to the airline industry, where pilots rehearse thousands of failures they hope never to face so they're ready if one arrives.
Testing three or four predefined scenarios leaves the dangerous, correlated outliers completely unexamined.
Traditional tests start with a narrative, then attach numbers. Straterix flips it - quantify first, discover the scenario, then explain it.
Its platform identifies the exact combinations of events that breach a firm's thresholds - and assigns probabilities from that firm's own KPI outcomes.
An automated AI engine that produces thousands of forward-looking, internally consistent scenarios, including rare tail-risk events.
A modeling and What-If environment for testing how key performance indicators respond across every generated scenario.
Finds the scenarios that would breach institution-specific limits and probability-weights them by the firm's own outcomes.
Jointly optimizes capital and liquidity and supports asset-liability management under scenario stress.
Scenario-driven allocation and capital optimization for investment and asset managers.
Extended scenario generation for credit-rating transitions, plus business planning and reporting on the same platform.
Straterix serves the institutions for whom a single wrong scenario can be existential. Its customers span the financial system - and it competes with far larger analytics vendors on methodology rather than headcount, sitting in the same market as Moody's Analytics, SAS Risk, Oracle OFSAA and economic scenario generators like Conning and Ortec Finance.
Illustrative segment focus based on Straterix's stated markets - not a measure of revenue share.
Former global head of Strategic Advisory at Goldman Sachs, Citigroup and Nomura, advising institutions on stress testing, economic capital and capital allocation.
Leads the technology and engineering behind the scenario-generation platform.
Renowned academic and co-inventor of the VIX volatility index - the market's "fear gauge."
Straterix licenses its cloud-delivered (AWS) scenario and stress-testing suite to financial institutions and regulators, customized to each client's balance sheet and KPIs.
A service tier and advisory engagements let smaller institutions tap enterprise-grade scenario analysis without building it in-house.
Alla Gil, Joseph Dafni and Dan Galai launch the company to rethink scenario generation and stress testing.
The company reports a Series A round, with roughly $4M raised to date.
A conventional debt round in April 2020 supports continued growth.
Product suite messaging updated around Scenario Generator, Manager, ALM Optimizer and stress testing.
Publishes widely with GARP and Risk.net on rapid, tariff-driven and more constructive stress testing.
It provides AI-driven scenario-generation and stress-testing software that helps financial institutions measure key performance indicators across thousands of possible future economic scenarios.
It was founded in 2015 by Alla Gil (CEO), Joseph Dafni (CTO) and Dan Galai, a co-inventor of the VIX index.
Banks, insurers, pension funds, asset managers, corporates, Federal Home Loan Banks and regulators use it for stress testing, capital and liquidity optimization, and strategic planning.
It emphasizes exhaustive, AI-generated scenarios and reverse stress testing - identifying what would break an institution and assigning probabilities from its own outcomes, rather than testing a handful of predefined scenarios.
Straterix is headquartered in Teaneck, New Jersey, and is a specialized firm of roughly 13 employees.