METIS Teams With ARCSys To Help Lenders Transition To CECL Model

METIS Financial Network, a provider of enterprise management solutions, has formed a strategic alliance with Norfolk, Va.-based ARCSys to help banks and credit unions better manage the additional data required under the Financial Accounting Standards Board's (FASB) proposed Current Expected Credit Loss (CECL) model, the companies recently announced.

The CECL model transitions financial institutions from an incurred loss model to a life-of-loan expected loss model, drastically changing the way these institutions must calculate and manage their Allowance for Loan and Lease Losses (ALLL).

By providing banks and credit unions with ARCSys' specialized accounting applications for automation of ALLL calculations along with METIS' data management capabilities, the companies aim to both streamline ALLL calculations and improve the accuracy and accessibility of the decision-making data.

‘We believe that capital requirements and the way banks calculate loan loss reserves is a major regulatory challenge facing every financial institution,’ says Floyd W. Kephart, chairman of METIS, in a release. ‘As banks and credit unions prepare for this transition, they must move away from reliance on manual, spreadsheet-heavy work and consider more automated solutions. The relationship between METIS and ARCSys will help contribute to a more manageable move to the CECL model.’

‘Our strategic alliance with METIS Financial Network complements and expands our ability to address the critical data management challenge within our clients' responses to pending and future FASB ACL and CECL guidelines,’ adds Mike Umscheid, managing director for ARCSys. ‘This is truly a milestone event for our clients and we look forward to continuing to develop ways we can work together for the benefit of all of the parties of interest.’


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