When it comes to analytics access and customizable data reporting, Twenty Twenty’s new loan portfolio management platform was the best option for Memphis City Employees Credit Union, says Nathan Stevens, CPA. The $275 million asset credit union has six branches in the Memphis area, approximately 32,000 members, and gross loans of about $125 million — all of which are consumer loans, including residential real estate and credit card loans.
Currently, the credit union is working to increase its 54% loan-to-share ratio, and the platform helps in that effort, says Stevens. The online tool also provides the framework the credit union needs for profitability analysis, peer-to-peer comparisons, credit risk management, implementation of the Financial Accounting Standards Board’s current expected credit loss (CECL) standard, and more.
“The platform continues to evolve and improve as new functionality is added,” says Stevens. “The new tool allows better access to the analytics 2020 provides. Furthermore, as we move toward CECL implementation, we can use the tools previously developed by 2020 along with the modeling scenarios for our CECL modeling.”
Specifically, the credit union’s CECL model focuses on probability of default methodology, although it’s also running static pool for comparison, as a basis for the historical components of its methodology. “I like the additional features that have been added, where we can shock our portfolio for unemployment and changes in collateral values, plus throw in interest-rate shocks,” says Stevens. “And 2020 has been very responsive to any suggestions I’ve had, and has implemented the good ones.”
The new platform allows credit unions to extract data to plain text CSV and Excel formats, and builds on Twenty Twenty Analytics’ credit risk model to provide credit unions with interactive visualizations so they can: