Startup Profile: Scenario X
Scenario X offers a comprehensive platform for financial stress testing and proactive risk modeling, targeting independent wealth managers and small to medium-sized banks. By automating the entire process—from data input to result interpretation—the platform simplifies risk management and enhances predictive forecasting aligned with Asset Liability Management. With plans to integrate quantum technologies, Scenario X aims to deliver a unique solution that improves risk assessment and reduces costs for financial institutions.
Website: https://scenario-x.ai
Industry: Financial Stress Testing and Risk Modeling, FinTech, Quantum Computing
Founded: 2022
Headquarters: Switzerland
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Conducting financial stress tests is complex, time-consuming, and resource-intensive, often requiring large teams and external consultants that smaller financial institutions cannot afford. There's a need for accessible, automated solutions to streamline this process for smaller banks and independent wealth managers.
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Scenario X provides an all-in-one platform that automates the entire stress testing process, from data input to result interpretation. By potentially integrating quantum technologies, they aim to offer a unique solution that enhances risk assessment capabilities and reduces costs for their clients.
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With increasing regulatory requirements and the growing complexity of financial markets, there's an urgent need for efficient and scalable risk management tools. Advances in technology, including cloud computing and quantum computing, make it the right time to innovate and offer such solutions to smaller financial institutions.
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Their platform automates stress testing processes, providing a seamless solution that simplifies data management, analytics, and compliance. Accessible via web and API, it currently operates on Azure with plans to transition to Google Cloud, and includes a Monte Carlo simulation use case.
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Scenario X operates on a subscription-based model, generating recurring revenue from platform access and setup fees. They focus on acquiring smaller clients to build experience and credibility, with plans to expand to larger banks as they enhance their product and expertise.
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While major banks have resources for stress testing, smaller institutions lack comprehensive and affordable solutions. Competitors offer fragmented tools, but Scenario X differentiates itself with a holistic platform tailored to the needs of independent wealth managers and small banks.
MARKET SIZE
The global market for financial stress testing and proactive risk modeling is valued at approximately CHF 26.4 billion, expected to grow at 17% annually, reaching around $15.5 billion by 2026. Scenario X targets a Service Obtainable Market (SOM) estimated at $2.1 billion in Switzerland and selected European countries.
FINANCIALS
Scenario X has raised funds through convertible notes, including CHF 60,000 from Fongit, CHF 50,000 from Nexius Group, CHF 100,000 from founder Achille, and additional CHF 50,000 from business angels. With a monthly burn rate of CHF 15,000–20,000, they aim to raise CHF 500,000–1 million in a pre-seed round by Q4 2024 to extend their runway and scale operations.
TEAM
Led by CEO Achille, who has 17 years of experience in modeling banking and financial products, particularly in regulatory stress tests. Cedric, the CTO, brings 7 years of experience as a data scientist with solid software development skills; together, they have deep expertise in financial modeling and technology.