By: Linda Haran Complying with complex and evolving capital adequacy regulatory requirements is the new reality for financial service organizations, and it doesn’t seem to be getting any easier to comply in the years since CCAR was introduced under the Dodd Frank Act.  Many banks that have submitted capital plans to the Fed have seen them approved in one year and then rejected in the following year’s review, making compliance with the regulation feel very much like a moving target.  As a result, several banks have recently pulled together a think tank of sorts to collaborate on what the Fed is looking for in capital plan submissions. Complying with CCAR is a very complex, data intensive exercise which requires specialized staffing.   An approach or methodology to preparing these annual submissions has not been formally outlined by the regulators and banks are on their own to interpret the complex requirements into a comprehensive plan that will ensure their capital plans are accepted by the Fed.  As banks work to perfect the methodology used in this exercise, the Fed continues to fine tune the requirements by changing submission dates, Tier 1 capital definitions, etc. As the regulation continues to evolve, banks will need to keep pace with the changing nature of the requirements and continually evaluate current processes to assess where they can be enhanced.  The capital planning exercise remains complex and employing various methodologies to produce the most complete view of loss projections prior to submitting a final plan to the Fed is a crucial component in having the plan approved.  Banks should utilize all available resources and consider partnering with third party organizations who are experienced in both loss forecasting model development and regulatory consulting in order to stay ahead of the regulations and avoid a scenario where capital plan submissions may not be accepted. Learn how Experian can help you meet the latest regulatory requirements with our Loss Forecasting Model Services.

Do you really know where your commercial and small business clients stand financially?  I bet if you ask your commercial lending relationship managers they will say they do –  but do they really?  The bigger question is how you could be more tied into to your business clients so that you could give them real advice that may save their businesses. More questions?? Nope, just one answer. Finagraph with Experian’s Advisor for relationship lending is a perfect setup to gather data that you currently are using within your financial institution that can then be matched that up with real financial spreads from the accounting systems that your business client use in their everyday process.  By comparing the two sources of records you can get a true perspective on where your business clients stands and empower your relationship managers like ever before.

In today’s world, it seem as though there is a statistic that we can apply to just about anything.  Whether it’s viewership of the Super Bowl, popularity of breakfast cereal or the number of red M&Ms that come in a pack, I bet the data is out there. In fact, there is so much data in the world that Emery Simon of the Business Software Alliance once said that if data were placed on DVDs, it would create a stack tall enough to reach the moon. But let’s take a step back. If you break it down to its bare bones, all data is, is a bunch of numbers. Until you can understand what those numbers mean, data by itself isn’t that helpful. Delivering data insights in order for our clients to make better decisions is at the core of everything we do at Experian. We are continuously looking for ways to use our data for good. This is especially critical for the automotive industry, including dealerships, manufacturers, lenders and consumers alike. For example, with data and insights, manufacturers and dealerships can better understand what vehicles consumers are purchasing, as well as where certain vehicle segments are most popular. This information can help them decide which vehicles models are performing or where to move inventory. For automotive lenders, gaining insight into the shifts in consumer payment behavior, enables them to take the appropriate action when making decisions on loan terms and interest rates. By leveraging this information, lenders are able to minimize their own risk and improve profitability. On the consumer side, a vehicle is often the second largest purchase they will make. It’s important, especially when purchasing a used vehicle, to get as much information as possible to make the best decision. Vehicle history reports contain hundreds of data points from a variety of sources that provide insight into whether a vehicle has been in an accident, has frame damage, and odometer fraud, among other things. Consumers are able to take these insights to assist in the car buying process to ensure the vehicle is safe and meets their own standards. Leveraging the information available to make better decisions across the board will help the industry and consumers cruise down the highway of success. And that’s how we roll …

By: Linda Haran Complying with complex and evolving capital adequacy regulatory requirements is the new reality for financial service organizations, and it doesn’t seem to be getting any easier to comply in the years since CCAR was introduced under the Dodd Frank Act.  Many banks that have submitted capital plans to the Fed have seen them approved in one year and then rejected in the following year’s review, making compliance with the regulation feel very much like a moving target.  As a result, several banks have recently pulled together a think tank of sorts to collaborate on what the Fed is looking for in capital plan submissions. Complying with CCAR is a very complex, data intensive exercise which requires specialized staffing.   An approach or methodology to preparing these annual submissions has not been formally outlined by the regulators and banks are on their own to interpret the complex requirements into a comprehensive plan that will ensure their capital plans are accepted by the Fed.  As banks work to perfect the methodology used in this exercise, the Fed continues to fine tune the requirements by changing submission dates, Tier 1 capital definitions, etc. As the regulation continues to evolve, banks will need to keep pace with the changing nature of the requirements and continually evaluate current processes to assess where they can be enhanced.  The capital planning exercise remains complex and employing various methodologies to produce the most complete view of loss projections prior to submitting a final plan to the Fed is a crucial component in having the plan approved.  Banks should utilize all available resources and consider partnering with third party organizations who are experienced in both loss forecasting model development and regulatory consulting in order to stay ahead of the regulations and avoid a scenario where capital plan submissions may not be accepted. Learn how Experian can help you meet the latest regulatory requirements with our Loss Forecasting Model Services.

Do you really know where your commercial and small business clients stand financially?  I bet if you ask your commercial lending relationship managers they will say they do –  but do they really?  The bigger question is how you could be more tied into to your business clients so that you could give them real advice that may save their businesses. More questions?? Nope, just one answer. Finagraph with Experian’s Advisor for relationship lending is a perfect setup to gather data that you currently are using within your financial institution that can then be matched that up with real financial spreads from the accounting systems that your business client use in their everyday process.  By comparing the two sources of records you can get a true perspective on where your business clients stands and empower your relationship managers like ever before.

In today’s world, it seem as though there is a statistic that we can apply to just about anything.  Whether it’s viewership of the Super Bowl, popularity of breakfast cereal or the number of red M&Ms that come in a pack, I bet the data is out there. In fact, there is so much data in the world that Emery Simon of the Business Software Alliance once said that if data were placed on DVDs, it would create a stack tall enough to reach the moon. But let’s take a step back. If you break it down to its bare bones, all data is, is a bunch of numbers. Until you can understand what those numbers mean, data by itself isn’t that helpful. Delivering data insights in order for our clients to make better decisions is at the core of everything we do at Experian. We are continuously looking for ways to use our data for good. This is especially critical for the automotive industry, including dealerships, manufacturers, lenders and consumers alike. For example, with data and insights, manufacturers and dealerships can better understand what vehicles consumers are purchasing, as well as where certain vehicle segments are most popular. This information can help them decide which vehicles models are performing or where to move inventory. For automotive lenders, gaining insight into the shifts in consumer payment behavior, enables them to take the appropriate action when making decisions on loan terms and interest rates. By leveraging this information, lenders are able to minimize their own risk and improve profitability. On the consumer side, a vehicle is often the second largest purchase they will make. It’s important, especially when purchasing a used vehicle, to get as much information as possible to make the best decision. Vehicle history reports contain hundreds of data points from a variety of sources that provide insight into whether a vehicle has been in an accident, has frame damage, and odometer fraud, among other things. Consumers are able to take these insights to assist in the car buying process to ensure the vehicle is safe and meets their own standards. Leveraging the information available to make better decisions across the board will help the industry and consumers cruise down the highway of success. And that’s how we roll …