CFOs have rapidly changing roles at all financial institutions. This is especially true of smaller ones including many credit unions as reported in the Credit Union Times in 'The Modern Credit Union CFO'. Each CFO must become strategic advisors to the CEO and Board, evaluating complex forecasts in order to identify and quantify both risks and opportunities. This is in addition to being an expert at accounting and financial and regulatory reporting, facile with understanding and managing internal control systems, and knowledgeable about asset/liability options to maximize returns.

CECLNow supports the changing role of the CFO by providing tools to support analysis and gain insights into account and segment performance for each loan product. These tools help to identify areas of risk and opportunity that can lead to strategy changes to product and customer mix as well as emphasis on different channels. In addition, two tools stand out in the future value to each organization -- benchmarking and forecasting.

Benchmarking provides apples-to-apples comparisons of behavior in your portfolio with like groups of accounts at similar lenders. These comparisons highlight where you are performing better or worse than you peers. The mix of applications and approval rates for different products and segments are the starting point as it helps identify missed opportunities. In tracking performance of each segment pockets of high and low risk asks questions of how to improve future results by avoiding risk or managing it differently.

Forecasting brings together past performance with projections of future delinquency, losses, and CECL reserve requirements all based on estimates of how business will change down the road. Reallocating capital to more valuable products and segments will drive the changes from the status quo. Bringing it together to maximize returns to shareholders or members is a challenge we will try to make as easy as possible.

No doubt the role of the CFO will continue to change and will vary with each organization depending on the strengths of the management team. Changes are the CFO will need to wear multiple hats and will need to use their skills to communicate internally and externally the future direction of the organization and the rationale. A wide-ranging, well-rounded role to be sure.