For Immediate Release
SS&C Third Annual CECL Study Maps Progress of New Standard Adoption
CECL readiness varies with almost as many banks in the initial planning stage as in the final phase of implementation
WINDSOR, CT, July 19, 2018 (PR NEWSWIRE) – SS&C Technologies Holdings, Inc. (Nasdaq: SSNC), a global provider of financial services software and software-enabled services, today released its third annual Current Expected Credit Loss (CECL) report. In the study’s inaugural 2016 poll, respondents recognized that the changes to policies, procedures and technology would be substantial (63 percent), with some respondents (20 percent) going as far to say that it will be the biggest change to impact bank accounting ever. Two years later, the 2018 survey shows a wide range in bank readiness. When asked what stage best described their institution’s transition, the majority of 2018 respondents fell at opposite ends of the spectrum with the top two answers being at the beginning ‘information gathering and planning’ stage (23 percent) and in the final ‘implementing requirements’ phase (27 percent). The 2018 survey was issued with support by CrossCountry Consulting and fielded onsite at the EVOLV Live: Getting CECL Right conference on May 10-11, 2018.
- Data was a common thread throughout the study, ranking as the number one concern and biggest gap in the transition to CECL (34 percent).
- Controls over data was the topmost concern by the vast majority of respondents (55 percent), followed far behind by model governance (15 percent), reporting and disclosure (15 percent), loan origination controls (9 percent) and credit risk controls (6 percent).
- When SS&C’s CECL study first debuted in 2016, spreadsheets were the number one tool for the reserving process (39 percent) under US GAAP. The 2018 data shows that only three percent of respondents rely on spreadsheets to calculate CECL, opting instead for more sophisticated technology via third-party software (36 percent) or an in-house modelling solution (28 percent).
“CECL compliance is meeting the functional requirements, within reporting timeframes, while executing a holistic end-to-end reserving process. We have focused on delivering the right people and technology to meet CECL’s demands.” said John Lankenau, Senior Vice President of Product and Operations, SS&C Primatics.
While there are varying degrees of readiness, most banks view CECL as a difficult requirement (76 percent) as opposed to what regulators had optimistically set out to do – that is ensure the financial viability of the business (17 percent) and help Wall Street better withstand a potential financial crisis (8 percent).
SS&C Primatics is designed to ensure CECL compliance with the right mix of flexibility and extensibility to guide institutions towards a successful transition. Most recently, SS&C was named a Leader by Chartis Research in the Chartis’s FinTech Quadrant™ as part of its
2018 CECL Technology Solutions report.The report is based off a sophisticated ranking methodology to explain the best solutions for buyers, depending on their implementation strategies.
The survey was issued with support by CrossCountry Consulting and fielded via email as well as onsite at the EVOLV Live: Getting CECL Right conference in Chicago, IL on May 10-11, 2018. Results are based on a seven multiple-choice question poll of 103 CPAs, controllers, treasurers and accounting professionals within banking institutions and related fields. Full survey results can be found here.
About SS&C Technologies
SS&C is a global provider of investment and financial software-enabled services and software for the global financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut and has offices around the world. Some 13,000 financial services and healthcare organizations, from the world's largest institutions to local firms, manage and account for their investments using SS&C's products and services.
About CrossCountry Consulting
CrossCountry Consulting is a trusted business advisory firm that provides customized finance, accounting, risk, operations and technology consulting services to leading organizations facing complex change. We partner with our clients to help them navigate pressing business challenges and achieve goals related to improving operations, minimizing risks and enabling future growth.
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