PrismPremier announces the launch of PrismPremier CECL 360. This new web-based software solution, created by the developers of PRISM: The ALLL Calculator, will help financial institutions address the full spectrum of the Financial Accounting Standards Board (FASB) Current Expected Credit Losses (CECL) standard.
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CECL is the new accounting standard that will change how financial institutions account for expected credit losses. Starting December 15, 2019, FASB is requiring public banks that file with the SEC to change how they estimate losses in their Allowance for Loan and Lease Losses (ALLL). All non-SEC filing institutions, including certain not-for-profits, are required to adopt CECL the following year.
Designed collaboratively by a team of experienced financial industry professionals and seasoned technology specialists, PrismPremier CECL 360 makes the transition from ALLL to CECL seamless. This new software-driven solution is customizable and provides a 360-degree view of the financial institutions reserves instantaneously.
When the CECL standard was issued, there was an overwhelming sense of chagrin being felt by management and executives of financial institutions, said PrismPremier CECL 360 Project Leader Asaad Faquir. There was a lot of questioning as to whether this level of complexity was even necessary for the allowance calculation and how financial institutions would be able to comply. Having previously developed PRISM: The ALLL Calculator, we believed that we were uniquely suited to assist institutions in addressing their varied and unique CECL computation challenges. As a result, we developed PrismPremier CECL 360, an easy-to-use and agile software solution that is scalable to the size and complexity of any institution.
As part of the new CECL model, financial institutions will be required to use historical information, current conditions, and reasonable forecasts to estimate the expected loss over the life of each loan. The transition to the CECL model will bring with it significantly greater data requirements to accurately account for expected losses under the new parameters. CECL 360 was developed with the following key benefits in mind:
- Quality. CECL 360s detailed reporting provides clear and concise documentation of each calculation and supporting data.
- Flexibility. The software allows for institutions to customize their CECL analysis to adapt to their needs. Through the use of this powerful tool, users can select among multiple methodologies for each asset pool and any subcategories of asset pools that they desire to isolate for more detailed review.
- Simplicity. In addition, CECL 360 enables institutions to easily access historical information, adjust for past events and future conditions, and develop reasonable and supportable forecasts of current expected credit losses over the life of each asset. The web-based platform also provides easy click-through features to simplify the completion of allowance calculations.
Powered by TXB, LLC, the PrismPremier brand of software products is developed collaboratively by a team of experienced financial industry professionals and seasoned technology specialists. Since 2010, they have been providing financial institutions with an effective solution for estimating, documenting and validating their Allowance for Loan and Lease Losses (ALLL) reserves through its proprietary software known as PRISM: The ALLL Calculator. The PrismPremier team understands and appreciates the challenges that are inherent in the complex accounting, regulatory and compliance environment that bank and credit union leaders face on a daily basis. Visit PrismPremier.com.