Teachers Federal Credit Union Selects Moody’s Analytics CECL, ALM Solutions

Rhea-AI Summary

Moody’s Analytics has been chosen by Teachers Federal Credit Union to enhance its risk management and treasury processes through its Current Expected Credit Loss (CECL), asset and liability management (ALM), and stress testing solutions. The ImpairmentStudio™ platform will automate allowance calculations, while the Portfolio Analyzer will support expected loss calculations and stress testing. Additionally, the ZMDesk™ solution will aid ALM activities by projecting earnings and assessing risk under various scenarios, enabling Teachers to make informed decisions for its 350,000 members.

Positive

• Teachers Federal Credit Union selected Moody's Analytics for CECL, ALM, and stress testing solutions.
• The ImpairmentStudio™ platform will improve automation in allowance calculations.
• The Portfolio Analyzer will enhance expected loss calculations and support stress testing.
• The ZMDesk™ solution will assist in projecting earnings and managing risks under various scenarios.

Negative

• None.

Moody’s Analytics today announced that Teachers Federal Credit Union has selected its Current Expected Credit Loss (CECL), asset and liability management (ALM), and stress testing solutions to improve their risk and treasury processes.

To prepare for the adoption of CECL, the credit union selected the ImpairmentStudio™ platform to automate their allowance calculation, analysis, reporting, and workflow. The solution also supports custom model development, validation, monitoring, and execution alongside a range of off-the-shelf loss-forecasting models. The credit union will also use Portfolio Analyzer, the Moody’s Analytics consumer loan models platform, to drive expected loss calculations and support their stress testing and capital strategy decisions.

Teachers Federal Credit Union also selected the Moody’s Analytics ZMDesk^TM solution for their ALM activities. This flagship product of ZM Financial Systems, which Moody’s Corporation acquired last year, enables users to project earnings, values, credit losses, and a wide range of stress test metrics under various interest rate risk and macroeconomic scenarios.

“In 2021, many credit unions are investing in technology to better measure risk and improve operational processes for the benefit of their members,” said Ed Young, Senior Director at Moody’s Analytics. “We see this as an excellent opportunity for Teachers Federal Credit Union to leverage the broad capabilities of Moody’s Analytics to manage their risks more holistically.”

“With continued expansion and an elevated member experience on the horizon, maintaining a consistent view of risk across departments is vital,” said Denise McGlone, Chief Financial Officer at Teachers Federal Credit Union. “By collaborating with Moody’s Analytics, our organization is able to leverage intuitive systems that will allow us to grow, scale, and promote sound business decisions for the betterment of our members, both current and future.”

About Moody’s Analytics

Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody’s Analytics, visit our website or connect with us on Twitter and LinkedIn.

Moody's Analytics, Inc. is a subsidiary of Moody's Corporation (NYSE: MCO). Moody's Corporation reported revenue of $5.4 billion in 2020, employs approximately 11,400 people worldwide and maintains a presence in more than 40 countries.

About Teachers Federal Credit Union

Teachers Federal Credit Union (Teachers) is one of the country’s largest credit unions with $8.3 billion in assets and more than 350,000 members across all 50 states. Founded on Long Island in 1952, Teachers is a full-service, not-for-profit financial institution that provides members with 32 full-service branches throughout Long Island, Queens, and Manhattan, as well as access to services at more than 5,000 shared service centers located across the country. Over the years and through various partnerships, Teachers has been proud of its role as a key supporter of the communities it serves. Teachers offers a range of member-focused products with competitive rates and low fees that started as a smart solution for teachers - now smart for all. For more information visit www.teachersfcu.org

View source version on businesswire.com: https://www.businesswire.com/news/home/20210315005130/en/

FAQ

What solutions did Moody's Analytics provide to Teachers Federal Credit Union?

Moody's Analytics provided its CECL implementation tools, including ImpairmentStudio™, Portfolio Analyzer, and ZMDesk™ for risk management and treasury processes.

How will Moody’s solutions impact Teachers Federal Credit Union's operations?

The solutions will automate allowance calculations, enhance expected loss calculations, and support effective stress testing, optimizing overall risk management.

When did Teachers Federal Credit Union select Moody’s Analytics?

The press release does not specify an exact date but indicates a current decision in 2021.

What is the significance of the CECL adoption for Teachers Federal Credit Union?

CECL adoption is significant as it improves the credit union's risk assessment and helps maintain a consistent view of risk across departments as it expands.

What is the market position of Teachers Federal Credit Union?

Teachers Federal Credit Union is one of the largest credit unions in the U.S., with $8.3 billion in assets and over 350,000 members.