MONETT, Mo., April 25, 2017 /PRNewswire/ -- Jack Henry & Associates, Inc.® (NASDAQ:JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its ProfitStars® division today announced the availability of its CECL DataStore and ValidationSM solution to provide financial institutions with an efficient way to meet the data collection tasks associated with Current Expected Credit Loss (CECL) regulations.
While the regulatory deadlines for CECL compliance are still years away, the time to gather data has already begun. Regulations require all financial institutions to significantly change their methods used to determine losses in the allowance for loan and lease losses (ALLL), a process that's been in place for more than 40 years. Previously, losses were reserved for when the loss on a loan became "probable," but CECL will require recognizing loss at origination and continuing throughout the life of the loan. This information is determined by analyzing the historic performance of similar loans, as well as several additional qualitative factors, adding time and extra steps to the process.
ProfitStars' CECL DataStore and Validation solution compiles and categorizes historic loan data, validates that the data required to calculate the new requirements has been received, and provides the ability to export the data from disparate systems into a standardized format. When used in conjunction with ProfitStars' CECL Analysis and ReportingSM, financial institutions will be prepared with the data and reporting necessary to achieve CECL compliance.
Russ Bernthal, president of ProfitStars, commented, "We developed the CECL DataStore and Validation solution as a comprehensive and proactive step toward reaching CECL compliance. Streamlining the process saves time, ensures that the correct data is being used, and empowers financial institutions to move confidently ahead."
The CECL DataStore and Validation module is supported by statistical analysis performed by Deep Future Analytics, an industry leader in scenario-based modeling and a pioneer in credit risk modeling technologies. The solution is part of ProfitStars' Financial Performance SuiteSM, a configurable collection of innovative capabilities and services that allow financial institutions to develop a deeper understanding of their client portfolio, deliver optimal loan and deposit pricing, and drive client profitability.
Bernthal added, "A strategic approach to CECL compliance can take months or even years to implement. For this reason, banks and credit unions must begin the data collection and archiving process now in order to be ready for the upcoming deadline. Modeling results with time to spare enables banks and credit unions to respond early to any necessary modifications, properly forecast budget changes, and run parallel methodologies concurrently for comparison purposes, prior to full implementation."
As a diverse, global division of Jack Henry & Associates, Inc.® (JHA), ProfitStars® combines JHA's solid technology background with the latest breakthroughs in six performance-boosting solution groups - Financial Performance, Imaging, JHA Payment Solutions™, Information Security & Risk Management, Retail Delivery, and Online & Mobile. Explore the power of ProfitStars-enhanced performance at www.profitstars.com.
About Jack Henry & Associates, Inc.
Jack Henry & Associates, Inc.® (NASDAQ:JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its solutions serve more than 10,000 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking® supports banks ranging from community banks to multi-billion dollar institutions with information processing solutions. Symitar® is a leading provider of information processing solutions for credit unions of all sizes. ProfitStars® provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Additional information is available at www.jackhenry.com.