Fiserv, a provider of technology and services to the mortgage industry, has launched Prologue Credit Loss Manager, a software solution that provides support for the final Current Expected Credit Loss (CECL) standards from the Financial Accounting Standards Board.
The CECL standards, which will become effective in 2019 and 2020, depending on company size, require financial institutions to alter the way they approach their end-to-end reserving process, replacing the current incurred loss approach with a lifetime expected loss estimate. As institutions refine their understanding of these changes, they will be able to begin to proactively design current capital reserve calculation and risk management strategies with solutions from Fiserv.
“Risk management and compliance in an evolving regulatory environment is a significant challenge facing financial institutions,” says Jerry Silva, research director, IDC Financial Insights, in a release from Fiserv. “When navigating the requirements of the coming CECL standard, it’s critical that the institution anticipate what data is needed to meet the new requirements as well as assess the availability, quality and accessibility of this data.”
Prologue Credit Loss Manager provides financial institutions with a broad range of information required to measure credit losses including “reasonable and supportable” assumptions that affect expected collections of principle or payments on financial instruments under the CECL standards, Fiserv says.
Because the solution allows consideration of any reasonable approach that reflects the possibility of a credit loss, accounting and risk managers and executives can better plan and adjust their strategy.
Financial information from Prologue Credit Loss Manager can be seamlessly integrated with insights from other financial performance and risk management solutions from Fiserv to provide financial institutions with a more unified, accurate and manageable view of their overall business performance.