Olson Research was organized in June of 1970 to acquire assets and business relationships from a diverse and rapidly growing predecessor firm, Maryland Research and Consulting Associates, Inc. Olson Research chose a specialty target of financial modeling services to banking organizations.
The first contract to implement a financial planning model was with the Equitable Trust Company of Baltimore, MD, beginning in 1966. Given a budget projection, Equitable’s management asked: WHAT IF interest rates change? From that question, an Asset/Liability Management model evolved from paper and pencil spreadsheets into computerized simulations. Optimization, gap analysis, financial instrument optionality, rate shock simulations, and other risk analysis techniques have followed over the years.
At a professional banking meeting, Cliff Myers (founder of Sendero Corporation and competitor of Olson Research) introduced Ron Olson as the “Grandfather of A/L modeling.” Many competitors have emulated the Olson Model over the past 40 years.