Combined Power of Experian and Oliver Wyman Leads to More Seamless Compliance with Current Expected Credit Loss Standards

Aug 7, 2019

Newly launched Ascend CECL Forecaster™ helps financial institutions of all sizes more quickly and accurately forecast lifetime credit losses

New York - As the initial set of deadlines for the Financial Accounting Standards Board’s current expected credit loss (CECL) model quickly approaches, Experian and Oliver Wyman have joined forces to help financial institutions adhere their loan portfolios to the new guidelines. Delivered through Experian’s Ascend Technology Platform™, Ascend CECL Forecaster is a new user-friendly, web-based application that combines Experian’s vast loan-level data and Premier AttributesSM, third-party macroeconomic data, valuation data and Oliver Wyman’s industry-leading CECL modeling methodology to accurately calculate potential losses over the life of a loan.

WEBINAR REGISTRATION: Compliance in a click: Loss forecasting and CECL

“Financial institutions across the board feel unprepared and overwhelmed with the new accounting standards on the horizon – in fact, many lack the historical data and technology required to meet the new guidelines,” said Robert Boxberger, Experian’s President of Decision Analytics, North America. “Our collaboration with Oliver Wyman is designed to streamline the road to compliance – but more importantly, enables lenders of all sizes to continue to properly assess their portfolios and help borrowers secure affordable access to credit.”

Built using advanced machine learning and statistical techniques, the web-based application maximizes the more than 15 years of historical credit data spanning previous economic cycles to help financial institutions gauge loan portfolio performance under various scenarios. Ascend CECL Forecaster does not require additional data nor does it require a secondary integration from the financial institution and enables organizations to more quickly test their portfolios under different economic factors. Moreover, financial institutions receive guidance from industry experts to assist with implementation and strategy.

“Oftentimes financial institutions need to ask the question, ‘Do I build or buy?’. The former tends to require significant cost, time and resources, such as data and technology,” said Anshul Verma, who leads the CECL product development at Oliver Wyman. “Ascend CECL Forecaster dramatically reduces the need for additional resources and consolidates necessary data and advanced technology under one umbrella, and ensures the capability remains world class as the regulatory requirements or business needs evolve. Large financial institutions with an existing CECL solution will also find immense value in having an independent tool as the benchmark to provide added comfort in results given the complexity and scrutiny involved.”

“Ascend CECL Forecaster is a critical capability needed urgently by all lending and financial institutions,” said Ash Gupta, a Senior Advisor to Oliver Wyman and former Chief Risk Officer for American Express. “The collaboration between Experian and Oliver Wyman allows a frictionless synthesis of industry data, capabilities and experience to serve customers in both first and second line of defense.”

Experian’s Ascend Technology Platform has been helping businesses, including the world’s top financial institutions, stay ahead of rapidly changing consumer behaviors since 2017. Through the platform, customers can build their own predictive models and gain actionable insights by applying machine learning and AI techniques to vast amounts of anonymized credit, client and alternative data sets. Its analytical tools mine rich layers of content to gain unique insights about businesses and consumers. Results are delivered in near real-time, via flexible self-service tools and powerful visualizations, all supported by industry-leading data security.

To help financial institutions better understand and prepare for the upcoming CECL standards, Experian and Oliver Wyman will host a webinar on August 22 at 10 a.m. PT / 1 p.m. ET. To register, click here. For more information about Ascend CECL Forecaster, visit http://www.experian.com/cecl.


About Oliver Wyman

Oliver Wyman is a global leader in management consulting. With offices in 60 cities across 29 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 5,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan Companies [NYSE: MMC]. For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.

About Experian

Experian is the world’s leading global information services company. During life’s big moments — from buying a home or a car to sending a child to college to growing a business by connecting with new customers — we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.

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