Sageworks: Simplifying CECL & Loan Growth

CIO VendorJay Blandford, President
With the emergence of fintech companies bringing frictionless payment solutions and the evolution of consumer preferences, banks and credit unions are under tremendous pressure to digitize their loan approval process to meet customer expectations, while not compromising on decision making. Rising costs, emerging risks, and an evolving regulatory landscape further augment the predicaments. This calls for a nimble approach that will allow institutions to align with evolving business challenges. Rising to the occasion is Sageworks, a financial information company offering technology solutions and industry best practices that allow banks and credit unions to grow more profitably and mitigate risk. Having built an artificial intelligence (AI) engine almost 20 years ago to enable small businesses to better manage their finances, Sageworks has expertise in enabling financial institutions to improve their reporting, loan decisioning, and business performance.

At the heart of Sageworks’ client engagement strategy is their end-to-end Sageworks Banking Platform, which drives consistent and faster loan lifecycle decisions for the customer. The platform’s integrated suite of web-based lending, credit risk, and portfolio risk solutions pave the way for a secure credit risk management framework, providing clients the ability to access information from any location and integrate disparate datasets. While this eliminates tedious manual data entry, access to information from a single login also streamlines the lending process.

Using patented technologies, including its FIND Engine and Electronic Tax Return Reader (ETRR), Sageworks quickly turns financial statements into a completely customized report summarizing the client’s financial performance and highlighting areas for improvement. The FIND Engine leverages AI—comprising thousands of expert system rules, text pages, and industry benchmark data—for rapid analysis, interpretation, and consolidation of financial data.

There is no compromise in the quality of our products; we listen to our customers and provide them the right technology that they need

On the other hand, ETRR extracts data from electronically produced PDF tax returns and readies the data for decisioning, while improving data quality that drives loan decisions and renewals.

For bank CFOs, the most critical Sageworks application is its CECL-ready ALLL product, which allows institutions to comply with today’s incurred loss standards for the allowance for loan and lease losses (ALLL) and readies the bank for compliance under the Current Expected Credit Loss (CECL) standard. “We are the first to market CECL-ready solutions to help clients manage their incurred credit risks versus expected,” adds Jay Blandford, President, Sageworks. Many institutions are facing this transition now, and with Sageworks they work with the industry leader on ALLL data management, flexible methodologies and reporting.

In addition, the platform’s credit analysis and global cash flow analysis applications enable banks and credit unions to measure the creditworthiness of prospective borrowers. This solution helps in making more profitable credit decisions by viewing the impact of proposed loans on financial metrics and viewing accurate global income and debt service.

Apart from the technology solutions, Sageworks also offers strategic Advisory Services that support portfolio evaluation with M&A activities, credit policy procedures, and design strategies to grow with minimum credit risks in the loan approval processes. What is more, through their Sageworks API Network, Sageworks can bridge different data sources and applications to bring insights into one easy-to-use interface with a seamless experience.

Enabled with a strong portfolio of solutions and experts, Sageworks continues to grow rapidly. The company’s roadmap includes leveraging their API, analytical tools, and real-time data to better guide clients on risk rating, commercial lending, and quick decisioning while not sacrificing credit quality. “There is no compromise in the quality of our products; we listen to our customers and provide them the right technology that they need,” concludes Blandford.