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By Bryan Ridgway and Kenneth M. Levey
Managing business and financial performance in today’s challenging and constantly evolving financial environment is critical for any bank to achieve its short-term and long-term goals. The ability to manage business and financial performance is directly dependent upon an institution’s understanding of the drivers of that performance and the ability to effectively quantify projected business strategies. Evolving the planning and budgeting process from a stagnant, annual process to one that enables more timely strategic decision making is essential to accomplish this objective.
2016 ISA Entry – Reputation Monitoring from G2 Web Services
CFPB enforcement actions increased 56 percent from 2014 to 2015. Most relate to UDAAP, “Unfair, Deceptive, or Abusive Acts and Practices.” Consequently, banks are finding it increasingly important to monitor the conduct of their business customers.
Multi-million dollar fines in 2014 and 2015 issued to banks with less than $700MM in assets could have been avoided had the banks monitored complaints and declining business customer reputation.
The DOJ found one community bank “ignored warning signs and numerous complaints” in a consumer fraud scheme. The FFIEC Examination Manual states banks should note “consumer complaints…that suggest a payment processor’s merchant clients are inappropriately obtaining personal account information.”
CFPB Director Richard Cordray testified in February he does not have legal authority to treat small institutions differently when enforcing regulations.
G2 Web Services’ Reputation Monitoring reports leading indicators of fraud and deceptive practices:
- Complaints Monitoring reviews multiple leading sources, including BBB, CFPB Consumer Complaints, and consumer feedback databases. It provides summary statistics, links to detailed complaints, and recommends which business customers to investigate further. It monitors continuously for signs of worsening reputation that may expose banks.
- Negative News/WatchList Monitoring scans over 100,000 unique sources of adverse media, identifying fraud, money laundering, bribery, regulatory actions, business crimes and misconduct. It also checks over 400 watchlists. It enables upfront and ongoing scrutiny through G2’s expert analysts who screen out false positives.
G2’s Reputation Monitoring helps community banks:
- Manage risk: (1) avoid boarding customers engaging in anti-consumer activities, (2) apply enhanced due diligence to higher risk customers, (3) exit relationships with fraudulent businesses faster.
- Follow regulator best practices: (1) abide by FFIEC recommendations, (2) adhere to CFPB Enforcement Action guidance, (3) produce consistent documentation every time.
- Operate more efficiently: (1) obtain information faster and more cost-effectively than internal analyst reviews, (2) scale faster, (3) avoid IT implementation costs.
G2 Web Services
By Alan Wooldridge
In an increasingly competitive banking environment, new efficiencies can pay big dividends. For commercial lending institutions, this is particularly true with regard to exception tracking.
June 16 – American Express has announced the availability of Amex Quick Chip, a technology that enables merchants to provide a more seamless experience at the point of sale for Card Members when they pay with their EMV chip cards. Amex Quick Chip is available to merchant processors, which may deploy the service to interested U.S. merchants through a software update to the merchants’ EMV-enabled payment terminals. This provides another option for merchants in industries where having a fast check-out process is especially important.
June 6 – Synechron, Inc., a global consulting and technology innovator in the financial services industry, has released the results of a survey conducted by the TABB Group for Synechron on the potential of blockchain and artificial intelligence (AI) in financial services. The survey was conducted with 92 banking and capital markets institutions, with executives that are directly involved with technology decisions at their firm.
May 9 – Dwolla, an all digital bank transfer payment system, has submitted a faster payments proposal to the Federal Reserve-chartered Faster Payment Task Force for review and assessment. The Fed-chartered initiative, comprised of the over 500 Faster and Secure Payments Task Force members, has been tasked with representing, addressing, and assessing improved payments systems. The Dwolla proposal offers an alternative to the 40-year-old $40 trillion bank transfer system that can take up to four days to transfer funds.
By Erin Oswalt
Would you like to drive digital sales to new levels? You are not alone – Recently Bottomline and BankNews offered a webinar focused on best practices in driving growth through digital channels. 90% of our audience indicated they have not reached their goals for digital growth.