Developing a Cutting-Edge Forecasting Model for Nova KBM Bank
For Nova KBM Bank, Slovenia’s second-largest bank and part of the OTP Group, I conducted comprehensive economic research and developed a Vector Autoregression (VAR) model to assist in quarterly reporting to the European Central Bank (ECB). The VAR model uses a series of macroeconomic variables to generate quarterly and yearly projections, allowing the bank to make data-driven decisions and present accurate expectations. Utilizing the R programming language and R Shiny, I created a web application that integrates seamlessly with the bank’s workflow, providing an intuitive interface aligned with the bank’s brand colors.
The app features an automated system that detects quarterly changes in macroeconomic variables, ensuring that the model is always up-to-date with the latest data. The result is a powerful tool that simplifies complex economic forecasting and enhances the bank’s ability to respond swiftly to economic shifts.
Empowering Financial Decision-Making with Automated Forecasting and User-Friendly Design
The development of the VAR model and web application for Nova KBM Bank has provided the institution with a powerful forecasting tool, enhancing its ability to make informed economic decisions and effectively communicate quarterly expectations to the ECB. By integrating R and R Shiny into the development process, the web app combines robust statistical modeling with a sleek, user-friendly interface that reflects the bank’s branding.
The automated data update system ensures that macroeconomic variables are continually refreshed, providing accurate and timely projections without manual intervention. This innovation not only improves operational efficiency but also empowers the bank to proactively manage economic risks and opportunities. This project highlights the transformative potential of combining economic expertise with advanced programming skills, resulting in a comprehensive solution that supports strategic financial planning and regulatory compliance.
