Abrigo, a North Carolina-based provider of risk management software for financial institutions, has launched an AI-powered tool designed to reduce the manual work involved in calculating and reporting expected credit losses under the current expected credit loss (CECL) standard.
The company has introduced Abrigo Allowance – Intelligent Automation as an add-on to its existing Allowance platform, combining automated workflows, AI-generated analysis and controls to help financial institutions manage recurring allowance processes.
The tool is being made available to more than 1,000 financial institutions already using Abrigo Allowance, the company’s CECL solution. The launch comes as Abrigo receives the 2026 Chartis Award for Managed Services: Credit Risk for its work supporting allowance programmes at financial institutions across the US.
While CECL calculations can already be handled through software, Abrigo says much of the work surrounding those calculations remains manual. This includes running processes, reviewing results, documenting changes and completing governance and sign-off requirements, with the workload increasing during month-end and quarter-end reporting periods.
Abrigo Allowance – Intelligent Automation is designed to automate those recurring processes once the required data is ready. The tool can launch configured tasks including running calculations, refreshing forecasts, processing pools, calculating qualitative factor scorecards, generating reports and notifying relevant employees when a cycle is complete.
AI-generated narratives are also used to explain changes between calculation periods, giving users analysis of what has changed and the factors driving those movements. Workflow capabilities provide structured tasks, reviews, approvals, controls and reminders throughout the allowance process.
The product is scheduled to become available by the end of September 2026. Abrigo describes its platform as supporting US financial institutions across risk management, lending, financial crime and compliance, analytics and intelligence, and customer relationship management. More than 2,400 institutions currently use its software and services.
Abrigo chief executive officer Jay Blandford said, “We’ve been supporting financial institutions through CECL transitions and calculations for more than 10 years, and allowance calculations continue to be critical to every institution’s executive team and board. We’re excited to build on our existing AI capabilities and extend them across our 1,000+ Allowance customers, helping them get more value from automation and turn calculation results into actionable insights.”
Lake Trust Credit Union financial analyst III Lionel Bontemps added, “Having an early view of new loans, updated balances, and current qualitative factors will give me a clearer picture of where the allowance is headed and help me focus on the areas that need attention. From there, reconciliation, sign-off, and automation will let me spend less time on the operational work required for the final review, while AI-generated analysis makes it easier to understand the key drivers of change and help me communicate the results with greater confidence.”
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