Baker Hill, a leading provider of technology solutions for common loan origination, risk and relationship management, CECL compliance and smart data analytics, has published its latest whitepaper, “Go Beyond Compliance to Achieve Sustainable, Profitable Growth with CECL,” revealing that by taking a proactive approach to CECL, the new standard can give financial institutions a competitive advantage to accomplish strategic growth objectives. This whitepaper is one of the company’s several new resources providing information to financial institutions to aid in making informed decisions regarding Current Expected Credit Loss.

The whitepaper explores how the Financial Accounting Standards Board’s (FASB) new standard could lead to changes within the financial industry, such as how financial institutions use data and what types of data are used to decision and monitor loans. The whitepaper also suggests that banks and credit unions that approach CECL proactively will benefit from the new standard by helping them accomplish their growth objectives and remain competitive through any economic environment.

Additionally, the resource further explains that to accurately predict loss allowances, financial institutions must gain a longer view of risk and understand how it will affect its portfolio, requiring substantial data. With insightful data analytics capabilities, banks and credit unions can gain a clearer idea of future economic conditions that may impact portfolio performance.

“A financial institution’s success in achieving CECL compliance hinges on their ability to access substantial amounts of various data sets to more effectively estimate the expectation of default at origination,” said John M. Deignan, President and CEO of Baker Hill. “By combining Baker Hill’s deep industry knowledge and expertise, this whitepaper aims to guide financial institutions in making better decisions to support improved underwriting, loan pricing and targeting for marketing campaigns to enhance long-term portfolio profitability and CECL compliance.”

To learn more, download Baker Hill’s whitepaper, “Go Beyond Compliance to Achieve Sustainable, Profitable Growth with CECL” or visit the Baker Hill CECL resource page.