PrismPremier CECL 360 is the Software Solution for CECL Calculations
NEW BRUNSWICK, N.J. (September 21, 2018) – PrismPremier announced today 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.
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.
PrismPremier CECL 360 was designed collaboratively by a team of experienced financial industry professionals and seasoned technology specialists to make the transition from ALLL to CECL seamless. This new software-driven solution is customizable and provides a 360-degree view of the financial institution’s 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 360’s 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.
More information about PrismPremier CECL 360 is available at PrismPremier.com/Products/CECL-360. Via the website, institutions can view a recorded demo or schedule a free online demo.