Fiserv has launched a new solution to help streamline compliance with the Financial Accounting Standards Board’s (FASB) pending Current Expected Credit Loss (CECL) standard.
The company, which provides financial services technology solutions, said Prologue Credit Loss Manager and its risk modeling tools are now available in a SaaS version hosted in the secure Fiserv cloud.
It will enable financial institutions of all sizes to ‘efficiently execute’ on their compliance strategies.
In addition to simplified CECL compliance and preparation, The SaaS-version of Prologue Credit Loss Manager includes implementation, secure database backup, software upgrades and all other maintenance, as well as access to technical support and online training.
“Financial institutions are taking different approaches to CECL preparation,” said Shawn Holtzclaw, senior vice president and general manager, Fraud, Risk and Compliance, Fiserv. “Providing Prologue Credit Loss Manager in a software as a service version enables us to accommodate banks and credit unions looking for a flexible solution that can facilitate speed to market through a managed service option.”
Effective December 15, 2019, companies filing with the U.S. Securities and Exchange Commission (SEC) must comply with CECL, which is designed to measure both current and future portfolio risk instead of just current losses.
CECL introduces new compliance and operational challenges for financial institutions by replacing the incurred loss accounting model with an expected loss model. One of the biggest challenges is challenges for financial institutions is the increased Allowance for Loan and Lease Loss (ALLL) reserve requirements.
To help, Prologue Credit Loss Manager combines advanced risk modeling with accurate analysis and calculation of past, present and future data to simplify financial institutions’ navigation of CECL requirements and optimize ALLL reserves.
“Prologue Credit Loss Manager enables financial institutions to aggregate the data required for CECL compliance while also providing the visibility they need to maximise loan and investment capital availability,” Holtzclaw added. “The end result is improved decision making that will benefit both financial institutions and their customers.”
In May, Fiserv partnered with fraud analytics firm Rippleshot. Through the partnership, Fiserv will offer Card Risk Office Fraud Warning, an early breach detection solution that allows financial institutions to identify potential fraud events 30-60 days prior to network alerts. Financial institutions will have access to information to help detect card-related fraud more quickly, as well as gain visibility to data about localised events networks may not have previously investigated.
The move came two months after Fiserv partnered with Mastercard to offer a decision and fraud detection service. Financial institutions working with Fiserv now benefit from this service, which helps them increase the accuracy of real-time approvals of genuine transactions, reduce the number of false declines and improve the overall cardholder experience.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
