MeridianLink®, developer of the financial industry's first multi-channel loan and new account origination platform, today announced that it has supplemented its offering by adding the MeridianLink® Lending Analytics (MLA) credit risk solution. The MLA solution assists credit union and financial institution management with meeting current expected credit loss (CECL) requirements, helps level the playing field in dealing with regulators and provides fact-based metrics for making better loans.
MLA’s credit risk analytics go far beyond CECL requirements and help lenders improve product design, risk pricing, underwriting, collections and marketing. Lenders using MLA can also expect to increase resource performance and profitability.
MLA was started to provide credit unions and financial institutions with detailed and sophisticated tools to analyze their loan portfolios. Using MLA as a management tool enhances financial institution decision-making as they grow loan portfolios successfully and profitably, and monitor decisions to take corrective action if necessary.
The web-enabled MeridianLink Lending Analytics treats each loan as a combination of risk components and generates specific risk calculations for every loan within the portfolio. Through MLA’s accurate risk measurement and reports, credit risk becomes much more transparent.
MeridianLink Lending Analytics is distributed and operated by MeridianLink under license from CUFA Ltd. (Dublin, Ireland), which owns the CUFA trademark. Founded by Mike Kitchen and Ralph Swoboda, highly-regarded international Credit Union leaders, CUFA (www.cufa.ie) is already being successfully used by the largest credit unions in Ireland to comply with the international version of CECL, which took effect for financial years starting in 2015. Over 50% of Credit Union loans in Ireland run through CUFA Lending Analytics, and the solution has proven acceptance by auditors and regulators in that country.
MeridianLink sought to offer the MLA solution in the United States as part of its strategy to provide 'best of breed' IT solutions to leading FIs. Tim Nguyen, president and CEO, MeridianLink, said, “As part of our commitment to our partners’ success, MeridianLink’s aim is to deliver end-user value that helps clients reach new heights of efficiency and profitability.”
“As competition continues to increase from traditional competitors and new non-traditional players, effective, timely and continuous analysis of your portfolios and proactive decision making to meet the challenges and seize the opportunities is a survival issue,” said Mike Kitchen, chairman, CUFA. “Having and using the best tools is critical. CUFA is the best answer.”
“CUFA is the best piece of software in the Credit Union space,” said Barry Monaghan, CEO, Gorey Credit Union.
Set to take effect in 2020, the current expected credit loss methodology (CECL) is a new accounting standard for determining allowances for loan losses. CECL will transform the way financial institutions must handle bad debt provisions, and MeridianLink Lending Analytics provides a big data/statistical solution to comply with CECL, along with much more.
MeridianLink, Inc., developer of the industry's first multi-channel account opening and loan origination platform, is a leading provider of enterprise business solutions for 20,000-plus financial service organizations. The company’s passion for excellence is reflected in its web-based credit reporting, lending and new account opening/deposit technologies, which all enjoy solid reputations as being cutting edge, reliable and affordable. Based in Costa Mesa, California, MeridianLink is committed to creating smart solutions that deliver real value. For more information, visit www.meridianlink.com.
Contact: Doug Wheaton
Senior Marketing Manager