We know you do a lot at your financial institution to make sure you stay in compliance, and we are thrilled to continue to be your partner and help in your success. In addition to assisting you with the allowance and CECL, we are proud to support your culture of compliance and BSA program with BAM+, our leading BSA/AML software, engineered by bankers for bankers. It is a comprehensive, flexible and user-centric solution that has met and exceeded regulatory expectations in high- and low-risk financial institutions across the country for the past decade. […]
MST is excited to be a part of a growing fintech family following the company’s acquisition by Accel-KKR in early April. In addition to MST, the firm has invested in Banker’s Toolbox, a BSA, Anti-Money Laundering and fraud detection software provider in Austin, TX, and Sageworks, a life of loan software provider in Raleigh, NC. With the combined three companies and a roadmap for continued growth, the new company will be poised to deliver even more value to community financial institutions through our expanded platform and services. The company has a shared commitment to customer success, so financial institutions will benefit from a single point of contact for the integrated platform and more solutions to help clients achieve their risk management and growth objectives.
The implementation of CECL has been called the biggest change in financial institution accounting . . . ever. Under current U.S. GAAP, financial institutions account for losses based on historical events or incurred losses. Beginning in the first quarter of 2020, financial institutions must look at the past as well as the future over the full lifetime of a loan. […]
As CECL nears, institutions must re-think their preparation processes. Time marches on. And CECL lies in wait. And as the former grows shorter and the latter nearer, priorities are changing for the financial institutions that will be required to adhere to the new allowance accounting standard. […]
A follow-up to the April 20, 2016 ABA Letter Among the many enhancements and functionalities to address CECL that we have been developing for our core product, the MST Loan Loss Analyzer platform, one took center stage on April 20 as the industry considered the latest American Bankers Association appeal regarding the new standard. In a letter to the top executives of the OCC, FDIC and Federal Reserve asking them “to take an active and detailed role in the FASB’s promise to ensure an in-depth cost analysis is performed,” the ABA noted: “At a minimum, much more granular analyses will likely be expected or required, and certain auditor and regulatory publications have already suggested that correlation analysis will help link forecasts of key economic drivers (such [as] interest rate increases) to credit loss estimates for various types of loans.” MST fully supports the ABA’s initiatives toward, and the need for, simplification and efficiency in what CECL will require of financial institutions. We also understand that FASB’s current version of the standard will remain essentially in tact, and we have been focused on developing ways to help banks prepare, including features and functionality that simplify the process and make it more efficient. That includes addressing the need to analyze the relationship between various economic conditions and an institution’s future loan and lease losses. We know that most community banks and credit unions don’t staff economists, so in conjunction with noted economists, we developed the MST Virtual Economist. As a companion module to the MST Loan Loss Analyzer, the MST Virtual Economist provides an easy way to look at a wide set of economic variables and understand how relevant metrics will influence portfolio performance. It allows the institution to select and track the economic data relevant to its locale and portfolio, [...]