The allowance for credit losses (ACL) is an important and scrutinized calculation for financial institutions due to its impact on earnings as well as safety and soundness. With the right CECL automation partner, bankers can make the process painless and yield tremendous reporting power.
Solutions for CECL implementation
Mitigate risk with our trusted CECL model.
Confidence in your CECL program
More than 1,200 institutions depend on Abrigo for their allowance automation; join this network for peer best practices and benchmarks to aid your CECL program.
“[The exam] went so much smoother than it would have without the program. I actually shudder to think of what the experience would have been like if I was still using our internal spreadsheets.”
Jason McCray, VP and Commercial Lending Manager, Citizens First Bank
Removing CECL complications
Abrigo offers support beyond a username and password, with award-winning service and our advisory teams of CECL experts. Financial institutions partner with us because we are committed to your success.
“If there’s one thing that I can say about Abrigo, it’s that they have taken the complications out of it.”
Andrew Reid, Executive VP and Chief Credit Officer, Bank of San Antonio
A trusted partner
Abrigo Allowance, our CECL software is a vetted, innovative, and intuitive solution that over 1,200 financial institutions already trust.
“We’ve always been a company looking for a better way to do things that is smarter and more efficient. Software can help."
Sheila Volek, Senior Accountant, MetaBank
Advantages of Abrigo Allowance & CECL Solution
Minimize regulatory scrutiny and compliance costs.
Abrigo’s Allowance and CECL software has been tested through successful audits and examinations. Banks and credit unions benefit from easy-to-use software that’s both reliable and recognized by auditors and examiners.
Flexibility to meet different lenders' needs
Abrigo’s CECL software is configurable to support the needs of institutions with simple portfolios as well as complex and large institutions.
Supported and documented processes
Defensible and documented processes within our CECL solutions translate into smoother exams and audits.
A sustainable and defensible CECL model
Our range of methodologies uniquely equips banks and credit unions to maintain compliance as market practices evolve or the portfolio grows.
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Efficiency and cost reduction
Ditch unwieldy spreadsheets or black-box systems that require repetitive data entry and introduce costly errors.
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More value from your data
Use integrated risk management processes and reporting to capture a more holistic view in ALM, stress tests, capital planning, and more.
Institution ease and happy examiners
"Abrigo made it so easy for me to transition between different methods with just a click, and we gave the examiner access to the read-only reports, and he utilized it extensively. He even asked how much we paid for it and commented that we got our money’s worth while they [FDIC examiners] were at our bank." Learn More
Features and functionality of Abrigo Allowance & CECL Solution
CECL features that support you as you grow.
The configurability of Abrigo Allowance, our CECL software, means it can support both complex and simple portfolios with no-code implementations scaled to your needs. Our range of methodologies also allows the institution to maintain compliance as market practices evolve or the portfolio grows.
Data Archiving & Integration
Integrate with any core provider, increasing efficiency for your institution and archiving the data to give your institution flexibility with methodologies.
Methodology Options
Scenario-test methodologies such as migration analysis, vintage analysis, PD/LGD, transition matrix, static pool, remaining life, and discounted cash flow (DCF).
Peer Data & Loss Benchmarking
Supplement credit loss experience (or lack thereof) with Abrigo's proprietary data and research from thousands of institutions.
Defensible & Easy-to-Use Models
Establish your allowance with sound, quantitative practices that reduce the impact and need for ongoing, significant qualitative adjustments.
Robust & Pre-Built Reporting
Quickly access disclosures and documentation to support the allowance and inform strategic portfolio-risk decision-making.
Connect CECL to Other Risk Functions
Abrigo's platform means CECL inputs and outputs integrate with origination, stress testing, asset/liability management, and risk models.
Award-winning support & implementation
“I think the whole process was set up and implemented very well by the Abrigo team. A couple of times I’ve had to submit something online and, practically before I finish it, I get a phone call. It makes the investment so much better when the support is that good. You don’t have many vendors where you’re on their radar like that." Read more.
Integrated systems with Abrigo
Comprehensive CECL & Allowance add-ons that make It easier to streamline the calculation.
Abrigo's additional resources, expert knowledge, and experience with the allowance for credit losses bring extra value to your relationship. Our additional services and functionality allow you to leverage your data so you can more easily make strategic decisions that drive growth and manage risk.
Analytics & Reporting
Create custom reports and interactive dashboards using simple drag-and-drop functionality in this advanced reporting application.
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Trepp CRE Data Integration
Get forecasted PD/LGD loss rates across property type, region, loan type, loan to value, and debt service coverage ratio cohorts with this optional scorecard.
Resources on CECL & Allowance for credit loss
Transition: CECL Prep Kit
Resources include implementation and data guides, accounting info, and a CECL software checklist.
Steps To Adopt CECL in 2023
How to adopt (and scale) best practices and avoid common stumbling blocks while implementing CECL.
Top 5 CECL Myths Busted
Understanding misconceptions about CECL implementation will help in navigating this change for 2023.
