FICO is hosting a free webinar to sort through the details of an important accounting change that might be giving auto finance companies grief in meeting new standards that change how institutions account for expected credit losses.
FICO experts plan to explain the Current Expected Credit Loss (CECL) requirements outlined by the Financial Accounting Standards Board (FASB) during a 60-minute webinar set for 1 p.m. EST on Tuesday.
“Beginning Dec. 15, 2019, most organizations will have to comply with these new standards. Doing so will require a substantial shift, not just for accountants, but for those in line-of-business, risk, collections and modeling teams within the U.S. auto finance industry,” FICO said.
“While these standards create significant challenges for auto finance, they also create opportunities. Winning institutions under the new model will place an increased reliance on data and analytics to aggressively compete for new business while ensuring tight compliance,” FICO continued.
David Binder, senior director of FICO Advanced Ventures, and Yuly Oentario, principal consultant at FICO, intend to share strategies to prepare for the deadline, demonstrate compliance and drive business performance improvements that contribute to higher levels of return on risk-adjusted assets moving forward.
Other specific topics on the agenda will include:
—What CECL requires of the auto finance industry and how it’s different than previous standards
—What finance companies will need to demonstrate compliance to regulators and auditors
—The challenges finance companies should expect to face in their analytics, operations, line-of-business, and corporate strategies
—The core steps recommended to meet CECL requirements
—Why CECL requirements provide a unique opportunity for competitive advantage for those who deploy the right strategy to comply
—A timeline that will help finance companies achieve consistent progress towards full compliance by December 2019