David Binder

How to get set for CECL In my last blog post, I started to outline my “10 Requirements for an Effective CECL Software Solution,” where I focused on three requirements your organization needs to do to get ready for CECL implementation. This post will address four requirements for getting set for CECL, i.e. what capabilities your solution must have to provide a stable…

Leader in CECL, FICO says it can 'deliver a competitive business advantage' FICO has been recognized as a “Category Leader” by Chartis Research in its report on CECL (Current Expected Credit Loss) technology solutions. The May 2018 report from Chartis compares the CECL solutions of 17 technology vendors, based on both ‘market potential’ and ‘completeness of offering…

How do you get ready for CECL? In my last blog post, CECL for Auto Finance – Where Do I Start? I promised to start outlining “10 Requirements for an Effective CECL Software Solution”. These are tips to keep in mind whether you plan to “build” or “buy” a solution. To keep things digestible I’ll spread these out over the next three posts under three headings: Read…

Countdown to Competitive Advantage If you are working in auto finance, you are no doubt aware that new accounting rules are being introduced to improve the forward-looking estimate of expected credit losses on loans and leases. CECL, or the Current Expected Credit Loss model, has been designed to ensure earlier recognition of credit losses to do all we can to avoid a…

Within walking distance of Old Town and next to the city’s largest green space, the University of Edinburgh welcomed a very international and highly skilled group of data scientists to discuss the hottest topics in credit scoring and related topics at the Credit Scoring and Credit Control Conference XV. It was a natural fit for FICO’s analytics leaders to be invited s…

Whenever there’s a major change in standards looming, companies subject to it understandably go into heads-down mode, focusing on what they need to do to become compliant. Often, there’s an enormous challenge just getting to the start line—the point where the change is required standard practice. For help with reaching the starting line for CECL, the new current expe…

The clock is ticking on IFRS 9 compliance. Preparing for Day 1 IFRS 9 impacts before models are fully built, tested and validated is a bit like preparing for a scheduled car crash: You know the event is going to happen and you know it will be expensive and painful, but you don’t yet know the exact amount of damage. It is tempting to seek comfort in averages from indu…