Don’t Put CECL on the Back Burner

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Don’t Put CECL on the Back Burner Share Save March 12, 2020 2,143 Views Previous: Big Apple Tackling Property Tax Problems Next: FOMC: Interest Rates Dropped to Zero Rick Martin is Product Manager, Financial & Risk Management Solutions, Fiserv. Prior to joining Fiserv, he worked at SouthTrust Bank and Bank of America and holds degrees in both Accounting and Finance from the University of Georgia. Martin is a Georgia Certified Public Accountant (CPA) and has owned and operated a small public accounting firm for over six years.  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago About Author: Rick Martin The Best Markets For Residential Property Investors 2 days ago Subscribe 2020-03-12 Seth Welborn Home / Daily Dose / Don’t Put CECL on the Back Burner Servicers Navigate the Post-Pandemic World 2 days ago Editor’s note: This feature originally appeared in the March issue of DS NewsThe Financial Accounting Standards Board announced its unanimous decision to extend the Current Expected Credit Loss (CECL) accounting standard deadline, giving certain organizations more time to collect and store historically vast amounts of data required for CECL compliance.Most entities, including non-SEC filing public organizations, non-public business entities, and smaller SEC-filing public organizations, now have until 2023 before CECL goes into effect. (The extension did not pertain to large SEC-filing organizations, which are generally defined as having market capitalizations above $250 million. Their deadline remained January 2020.)The new accounting standard was previously scheduled to go into effect in 2020 for SEC-filing organizations, 2021 for non-SEC filing public organizations, and 2022 for non-public business entities such as community banks and credit unions.The timeline extension certainly affords much-needed relief for smaller institutions that were scrambling to prepare for CECL. However, regulators recognize that it may also encourage some to further delay their preparation. As a result, regulators have started incorporating CECL preparedness into soundness examinations. That added scrutiny may eventually increase as the industry learns from large SEC filers’ CECL results and as we move closer to the 2023 deadline.Turn Compliance Into an OpportunityForward-thinking institutions recognize that, with the proper methodology, the additional data required for CECL provides much deeper insights in their institution’s loan portfolio and risk profile. New intelligence can be leveraged for competitive purposes as they glean clearer understandings of asset trends, risk components, and the profitability of different segments. With more detailed views, they can, for instance, implement strategic pricing and tactically promote or pull back on specific products or product groups.Those tempted to delay their CECL compliance strategies in light of the extension may risk falling short in future soundness examinations and compromise their ability to take full advantage of opportunities presented by CECL. However, effectively recognizing and acting on these opportunities can be easier said than done. There is no one-size-fits-all methodology for fitting vast amounts of CECL data together, and methodologies can change at any moment due to external factors. Instead, testing against a range of different scenarios is needed to determine the most appropriate method for fitting the data together to optimize long-term performance.Testing against a range of “what ifs” that uniquely influence an enormous amount of data can make selecting the right method a time- and labor-intensive process, which may reinforce the temptation to delay CECL preparation.Fortunately, financial institutions can greatly streamline what would otherwise be a daunting testing process by adopting CECL compliance tools enhanced with scenario-planning capabilities.With automated scenario planning, financial institutions can compare various pool segments, calculation methodologies, and even qualitative adjustments prior to finalizing their allowance for loan and lease losses (ALLL) reserve calculations. Essentially, that means organizations can easily test multiple methods and evaluate the results before committing to a specific one. The ability to test in different environments and scenarios shows how ALLL calculations may change. Understanding those changes and implications may enable development of better strategies and contingency plans to maximize profitability.Rather than giving into the temptation to procrastinate, financial institutions would be wise to push ahead on executing their CECL compliance strategy, using the extra time to evaluate automated scenario planning capabilities. That will help prevent a last-minute rush to meet the extended deadlines, providing organizations more time to achieve automation for streamlined CECL compliance, competitive differentiation and long-term profitability. Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily in Daily Dose, Featured, News, Print Featureslast_img read more

Best practices for credit card programs (and why they work)

first_img 2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr The U.S. credit card industry is expansive and growing, topping $4 trillion in volume in 2014, according to The website also notes that credit card applications reached record highs in June 2016, as reported by the Federal Reserve Bank of New York.And research suggests that credit unions are gaining ground in this lucrative market. In fact, credit unions have increased their credit card market share nearly 50 percent since the 2008-2009 recession, according to what are the most innovative credit unions doing today to keep members reaching for their cards? CO-OP Financial Services has identified several best practices, proven strategies that can help you increase your own success.Proactively manage your portfolio. Your program manager should be comparing year-over-year benchmarks within the portfolio on a monthly basis, looking at transaction and sales volumes, as well as the number of accounts and account activations. Other important data points to review include outstanding balances (looking for increases), payments volumes/trends (to understand member behavior changes in carrying balances), income trends for finance charges and fees, and past-due account aging. continue reading »last_img read more

Mobile fraud: More than 50% of high risk transactions originating from mobile

first_imgMobile fraud from mobile devices has rapidly evolved over the past several years. From this small, handheld device, your customers can request a ride, book a babysitter, conduct a video conference, apply for a loan or transfer money. In fact, over half (61%) of our protected transactions come from mobile devices so far this year, up from 56% in 2018 and 51% in 2017.As consumers shift to conduct more business on their mobile devices, fraudsters have taken notice. Ever relentless in trying to make their tactics look legitimate, mobile fraud perpetrators are mimicking the growth of mobile transactions by using either mobile devices or emulators on their desktops so transactions appear to be coming from mobile devices.In the first half of 2019, iovation saw 49% of risky transactions coming from mobile devices, up from 30% in 2018, 33% in 2017 and 25% in 2016. Throughout the globe and in every industry sector, iovation analysts are seeing an increase in mobile traffic correlated with an increase of risky transactions. continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

Arsenal team news: Mikel Arteta makes four changes as Aubameyang and Lacazette both start

first_imgArteta will hope for victory (Picture: Arsenal FC via Getty)Mikel Arteta has made four changes to his Arsenal side after their win over Sheffield United, starting Pierre-Emerick Aubameyang and Alexandre Lacazette against Norwich. Centre-back David Luiz passed a fitness test to start, with Bukayo Saka having to settle for a bench after celebrating his new deal. Hector Bellerin, Dani Ceballos, Aubameyang and Reiss Nelson have all come into the starting XI, with Ainsley Maitland-Niles, Joe Willock, Nicolas Pepe and Saka dropping out.Cedric Soares has returned to the match day squad but there is no room for Mesut Ozil.ADVERTISEMENTArsenal had endured a tough return to action with back-to-back defeats to Manchester City and Brighton but bounced back with a win over Southampton before booking their spot in the semi-finals of the FA Cup by beating Sheffield United.AdvertisementAdvertisementThe Gunners can close the gap on fourth-place Chelsea to eight points with victory over rock-bottom Norwich, although Frank Lampard’s side can extend the gap with a win over West Ham later on Wednesday. A win would see them jump up three places in the table to seventh. One of Tottenham Hotspur and Sheffield United will likely jump above them again, however, when they face off on Thursday. Norwich are in desperate need of three points. They are six points off safety, with the worst goal difference in the league.Who will win?Arsenal0%Norwich0%Draw0%Share your resultsShare your resultsTweet your results Advertisement Arsenal team news: Mikel Arteta makes four changes as Aubameyang and Lacazette both start Commentcenter_img Arsenal vs Norwich team news Arsenal: Martinez, Bellerin, David Luiz, Mustafi, Kolasinac, Tierney, Ceballos, Xhaka, Aubameyang, Nelson, LacazetteNorwich: Krul, Aarons, Godfrey, Trybull, Lewis, Tettey, Mclean, Rupp, Buendia, Cantwell,Pukki Metro Sport ReporterWednesday 1 Jul 2020 5:07 pmShare this article via facebookShare this article via twitterShare this article via messengerShare this with Share this article via emailShare this article via flipboardCopy link233Shares Advertisementlast_img read more

Syracuse tries to replicate game plan for lethal Washington scorer Kelsey Plum

first_img Facebook Twitter Google+ Published on April 2, 2016 at 9:15 pm Contact Paul: [email protected] | @pschweds INDIANAPOLIS — Before Syracuse’s first-round game against Army, the Orange used its prior experience against Washington to prep for the Black Knights point guard. The Black Knights’ Kelsey Minato, the seventh-leading scorer in the country, was a dynamic scorer just like UW’s Kelsey Plum, the third-leading scorer in the nation.Two weeks after beating Army by 17, Syracuse will face Plum and Washington again. Except this time, it’s in the Final Four with a trip to each teams’ first-ever title game on the line.And defending an evolved Plum, who is averaging 25 points in seven postseason games, is right at the top of the Orange’s game plan.“You can say, ‘Hey it’s nothing new,’ but players get better throughout the season,” SU guard Brittney Sykes said. “She has been coming in really really clutch for her team, as she should being the player that she is.”No. 4 seed SU (29-7, 13-3 Atlantic Coast) faces No. 7 seed Washington (26-10, 11-7 Pac-12) on Sunday at 8:30 p.m. in Bankers Life Fieldhouse. Plum scored 19 in the first meeting between these teams, but the rematch comes as both teams are playing their best basketball of the season. The Orange’s full-court press and half-court zone defensive combination has flustered opponents throughout the first four games of the tournament while Plum has capitalized on teammates spacing the floor better.AdvertisementThis is placeholder textWhile Cornelia Fondren said the game plan to defend her is still the same as it was for the first game, which the Orange won by four, SU head coach Quentin Hillsman said he would consider going to a box-and-one or even a triangle-and-two to defend Plum if her shooting stroke heats up.“Defending Kelsey Plum, that’s it,” Hillsman said of the biggest challenge defending Plum. “She’s an amazing scorer. You have to find her early in transition and you have to really stay in front of her. She’s a really crafty guard.”Similar to Minato, who SU held scoreless in the first half, Plum can be deceptive. The point guard can score from anywhere on the court, Fondren said, and being a lefty, too, adds in another wrinkle to remember on defense.Despite her impressive scoring ability, the 5-foot-8 Plum doesn’t stand out much.“That kid looks like 90 percent of the other kids walking down the mall,” UW head coach Mike Neighbors said. “If you saw her shopping, you wouldn’t know she was Kelsey Plum. … She just looks like every kid else that’s out there.”Plum said playing teams later on in the season that use their athleticism to pressure ball-handlers like Arizona State and UCLA has given the Huskies some prep for Syracuse. But this week, UW hasn’t been able to use the men’s practice players it uses when practicing at home.Since the Orange’s defense is different than most teams and it can’t be simulated in practice, it’ll come down to in-game adjustments, an area Neighbors said he lost to Hillsman the last time they played.And Hillsman knows how much that coaching matchup could come down to Plum.“She’s just a really good player and you have to make sure you have someone guarding her at all times,” Hillsman said. “When she’s in the shooting area, she’s a threat.” Commentslast_img read more