CECL Modeling
ALM360 offers both PD-LGD and SCALE so every institution can select the model that best fits its operational needs and regulatory requirements. Both models are designed to meet CECL standards, but each offers distinct advantages:
- PD-LGD: Granular, risk-sensitive, and tailored for credit unions with diverse or complex loan portfolios.
- Mid-to-Large Credit Unions: PD-LGD is recommended for credit unions with more complex portfolios, diverse loan types, or those seeking granular risk analysis. It provides deeper insights and supports advanced modeling.
- SCALE: Streamlined, efficient, and ideal for smaller institutions or those seeking rapid, low-touch implementation.
- Small Credit Unions: SCALE is recommended for smaller credit unions or those with straightforward loan portfolios. It offers rapid onboarding and compliance with minimal data requirements.