This IDC Perspective highlights some of the challenges and, more importantly, the opportunities facing financial institutions (FIs) in preparation for compliance with the current expected credit loss (CECL) accounting standard later this year. CECL compliance necessitates digital transformation of the finance and risk functions.
"Too often, banks throw human capital at compliance and regulatory challenges. To effectively meet the demand of CECL, banks must use technology to compensate for the added pressure to IT, risk management, and accounting/finance functions that the standard will bring. Firms that use this as an opportunity to digitally transform these functions will accelerate their performance by enabling sharper insights to their data," according to Steven D'Alfonso, research director, IDC Financial Insights.