New Jersey-based Cross River Bank implements CLOUDecision’s revolutionary, cloud-based financial analytics software, a first-of-its-kind solution to help community banks comply with federal regulations and replace legacy software platforms.
Woodland Park, NJ -- (SBWIRE) -- 06/26/2012 -- CLOUDecision (www.CLOUDecision.com) has deployed its revolutionary, industry leading cloud-based commercial loan decisioning, portfolio analysis and risk management software for New Jersey-based Cross River Bank. This implementation enables the bank to create a consolidated view of its portfolio for risk management and comply with the stricter federal requirements.
Bracing For The Storm Of Regulatory Changes
“The successful deployment of our web-based software suite comes at a time when community banking executives are bracing for the storm of federal regulatory compliance changes,” explained Brian Chirles, Principal of CLOUDecision. “The new regulations require usages of commercial decisioning software and aggregation of data for portfolio analysis and risk management. Over the past few years, banks have faced the real estate bubble, credit crisis, competition from industry consolidation, and the introduction of new guidelines for a comprehensive health of commercial and commercial real estate loans – now the impending challenge takes the form of stricter federal regulatory requirements,” Mr. Chirles noted.
“All banks are not alike but all face the monumental challenge of aggregating and processing loan data to assess portfolio risk and prepare clear and presentable board and examination packages,” said David Tilis, Director of Servicing, Cross River Bank. “All banks use hard copy files or files stored on servers or clouds. However, few banks possess the capability to provide reports to regulatory examiners or auditors immediately upon request.”
CLOUDecision Solutions: Bankers’ Tools For Regulatory Compliance
“Through the use of CLOUDecision’s business financials, commercial RE and Portfolio Analysis & Stress Testing software, and comprehensive back-end servicing, we are able to compile and consolidate all loan data from hard or soft copies, PDFs, spreadsheets, etc. from our core system and shared drives, with easy access and handling,” Mr. Tilis added. “We created a central repository of data for financial analysis, risk analysis and portfolio analysis stress-testing purposes. This is a great risk management tool.”
Mr. Chirles explained that community banks must start to organize data from multiple sources into one central location, which will be the first step in moving toward the future of community banking. To do this, many banks will need to completely restructure the way they manage, store, maintain and report on their financial portfolios. Gone are the days of having data in multiple places including file cabinets, folders, shared drives, and scanned in storage without having any integration or central storage of the data. According to an ABA article, lenders could even face legal risk in this current environment if borrowers find that original loan documents violate internal bank or federal guidelines.
Why CLOUDecision Tools Are So Important For Banks
Community banking executives are faced with important questions: Can we provide regulatory information to examiners when requested, or by using an online delivery method? Are our customers’ data in one place including core data, financial spreads, income/expenses, and collateral in conjunction with core data? Do we have the ability and resources to compile and consolidate all data into one place? Even more importantly, is our loan portfolio compliant with federal policies?
CLOUDecision Tools Are Cost Effective
The growing need for cost-effective solutions is also opening the door for financial software companies to develop streamlined solutions. By leveraging web-based software, cloud storage and standardized processes that are compliant with federal regulations, companies like CLOUDecision offer significant cost savings to community banks.
“Our on-demand, pay-as-you-go model enables community banks to be on an equal footing with the larger banks. The pay-per-use model enables banks to purchase any type of software including financial spreading, commercial loan origination & decisioning, commercial real estate, portfolio analysis and stress testing, small business decisioning, risk management and more at a fraction of the cost of traditional software,” said Mr. Chirles.
In addition, “many community banks don’t have the time and resources to compile and consolidate data for auditors and the regulators. Our company compiles and consolidates data from multiple sources, including shared drives, scanned documents, core data, scanned files, excel sheets and word documents into one central database. CLOUDecision will enable them to be ready for FDIC or State regulatory examinations today and in the future. Since the cloud platform requires no annual licensing fees or hardware, it is far less expensive for banks, saving them as much as tens of thousands of dollars annually.”
Navigating The Future
CLOUDecision’s software is indicative of a trend toward operational efficiencies that can help trim the bottom line while achieving compliance for community banks.
Based in Woodland Park, New Jersey, CLOUDecision (www.CLOUDecision.com) is the creator of a software-as-a-service, web-based platform that provides secure financial analysis, statement spreading, stress testing, portfolio analysis, reporting and decisioning solutions. CLOUDecision products are affordable for banks of any size, conveniently accessible via the web, designed to streamline operations, and are fully FDIC and NCU compliant. Designed by banking industry professionals to deliver superior operational and cost efficiencies to banks and credit unions, CLOUDecision’s web-based financial analysis software represents an alternative to legacy hardware and software packages that are cumbersome to implement and expensive to purchase and maintain. CLOUDecision is SAS-70 Type II compliant.
About Cross River Bank
Cross River Bank began operations in Teaneck in 2008 and has quickly grown into one of the largest community banks in the region, offering a full range of savings, credit, and lending services to individuals and businesses. Its business model is considered to be the bank of the 21st century, as it sits at the crossroads of technology and banking. For more information, visit www.crossriverbank.com or call (877) 552-7255. Cross River Bank is a member of the FDIC.