Cenerus Preemptive CECL Reduces Costs While Delivering Business Generating Potential, Profit and Regulatory Compliance in One Integrated Process
PHOENIX, Feb. 12, 2025 -- Current Expected Credit Loss (CECL) was intended to better reflect expected losses by lenders. Unfortunately, in most cases its application hasn't met the full needs of banks or regulators: a portfolio approach to risk management that doesn't actively protect the balance sheet, doesn't drive profit, and doesn't account for qualitative as well as quantitative factors at the borrower.
Cenerus Preemptive CECL identifies potentially challenging assets early and provides tools to actively improve the loan.
Seeing this need, Cenerus, the leader in helping banks and credit unions increase profits through insight driven action, is announcing an important new offering: Cenerus Preemptive CECLSM turns standard CECL reporting into both a risk management and a profit-generating tool all while directly addressing ongoing concerns from regulators about lack of context and qualitative information.
The Preemptive CECL approach identifies potentially challenging assets early and provides the tools to actively manage the borrower and the loan to minimize the threat. Importantly, it also provides transparent accountability on the necessary, reduced reserves.
"Cenerus' priority is helping banks improve profitability and customer connection through insight driven action," said Sam Rosenfeld, CEO of Cenerus. "With Cenerus Preemptive CECL banks and credit unions move from being captive to portfolio models only useful in regulatory conversations to active asset management, giving CFOs and Chief Credit Officers substantially more to address threat of loss, reserves and liquidity."
Cenerus Preemptive CECL: Going Beyond the Basic to Improve Value
The standard approach to CECL reporting is one-dimensional, usually portfolio-based and all-too-often based on stale information. Preemptive CECL is an active approach, mapping the likelihood of levels of loss, the tools to manage those outcomes and so set decision points for prices and actions to protect the balance sheet from losses and outweighed reserves. Detailed accountability at each asset and borrower translates to more effective outcomes.
Cenerus Preemptive CECL is a value management tool as much as a reserve calculation tool.
The proactive, quantitative and qualitative approach of Cenerus Preemptive CECL delivers several core benefits to the standard CECL currently missing the mark:
- Better threat management, reducing reserves and pricing
- Increased liquidity
- Enhancing customer interactions and improving loyalty to gain additional sales
Cenerus combines its services including Data to Decision Assessments with financial-institution-defined triggers and ongoing monitoring, making Preemptive CECL a dynamic, business-driving tool.
Increase Portfolio Choice, Efficiency and Opportunity with Dynamic CECL
Giving banks and credit unions more choice and the ability to turn sunk cost reporting into value-creating opportunity is the at the heart of Cenerus' mission, to help banks increase profit and competitiveness through stronger customer connections.
Banks and credit unions interested in taking advantage of the cost-efficient and value-creating benefits of Cenerus Preemptive CECL or learning more about Cenerus' other profit-building services for financial institutions can contact info@cenerus.com.
About Cenerus:
Cenerus is the leader in helping banks and credit unions of all sizes increase profits through higher customer visibility and intelligence driven action. Cenerus' easy to implement, quick return approach supports leaders move from reactive response to informed action across commercial credit environments. For more information visit www.cenerus.com
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