MCLEAN, VA--(Marketwired - Sep 12, 2014) - John Lankenau, VP of Product Management at Primatics Financial, a leader in integrated accounting, risk, compliance and regulatory solutions, spoke at the AICPA National Conference on Banks and Savings Institutions this week on the widening technology gap financial institutions are facing.
Between the type and number of loans that require more operationally complicated accounting treatments and disclosures, increased regulatory expectations, accounting changes for non-performing loans, stress testing, and now the anticipated Current Expected Credit Loss (CECL) model, banks face many new sources of complexity in the post-financial crisis world.
At the event, Mr. Lankenau noted how these complexities are not primarily calculational, but process-based and how banks are leveraging dated or inappropriate technology or adding manual processes instead of addressing these challenges in an efficient and well-controlled manner. When properly used, the technology available today can help simplify these difficulties, relieve operational burdens and free up resources to spend more time doing value-added analysis. Mr. Lankenau shared how banks can prepare for changes in accounting standards when it comes to CECL as well as all future regulations, and why leveraging technology will enable these banks to do things better, faster and cheaper.
"CECL, like many compliance changes, is daunting to banks and other financial institutions," said John Lankenau, VP of Product Management at Primatics. "But instead of being blindsided by the now seemingly inevitable issuance of the rule, banks need to take charge of their situation and prepare themselves, leveraging the necessary tools and resources. Properly designed technology clears through the muck, allowing banks to have more control over their processes."
Some highlights from John's presentation include:
- Currently, banks use a hodge-podge of point solutions, manual processes and spreadsheets to perform critical compliance functions.
- This hodge-podge is inefficient, hard to control and requires people to spend so much time processing that they have little time for value-added analysis.
- Stress testing and CECL represent the latest changes in the evolving landscape that is continuing to widen the technology gap.
The full presentation is available now here, and a video of the presentation will be available on the Primatics website for viewership and comment at the end of the month. To learn more about CECL and how financial institutions can better prepare for the regulation, please visit our website: www.primaticsfinancial.com.
About Primatics Financial
Primatics addresses a financial institution's most complex risk and finance challenges with EVOLV®, our open platform with integrated solutions. Built by industry experts, EVOLV® uniquely equips financial institutions to efficiently meet changing accounting, risk, compliance, regulatory, market and business needs. Primatics is headquartered in McLean, Virginia, USA. For more information visit: www.primaticsfinancial.com.