The FASB CECL pronouncement changes how institutions look at and calculate reserves for credit losses. In order to meet that requirement, institutions will need to store a potentially significant amount of historical data. At first, institutions will be purely reactive looking to meet the standard. However, if the process around CECL is an integrated part of strategic planning and analysis, institutions can optimize that historical data to become more competitive and profitable. Aligning segmentation of loan pools for CECL with charts of accounts budgeting, planning, stress testing and balance sheet management can become much more effective. Incorporated into Funds Transfer Pricing analysis will CECL analysis can provide a more accurate measure of the contribution to net interest margin.
CFOs, Controllers, Financial Accountants and Asset Liability Managers should join Tom Caragher, Senior Product Manager, for an educational and informative discussion to learn how your institution might be able to create a strategy to manage the new process as well as see Fiserv’s solution, Prologue™ Credit Loss Manager. We’ll discuss what’s ahead for the coming FASB CECL mandate and how your institution can be better prepared.