Independent Banker - October 2020 - 22

PORTFOLIO
NOW ON DEMAND
Reopening But
Not Recovering
The impact of reopening
and economic recovery on
your credit portfolio
Featuring:
Robby Holditch
Director, Regulatory
and Accounting
Solutions
Featuring:
Alex Cannon
CPA | Associate
Director, Senior
Consultant
Featuring:
James Partridge
PhD | Director,
Subject Matter Experts
in Credit Analytics
Adjustments and changes to how you manage
your credit portfolio are necessary
against the backdrop of COVID-19. Join us as
we discuss adjustments to each stage of the
credit lifecycle, from risk ratings of new and
on-book credits, to accounting for payment
assistance and volatile economic variables
into your allowance framework.
Mary Gill Hundley, chief administrative
and risk officer at KlariVis in
Roanoke, Va., which has developed a
data analytics systems, says the integration
of automated data analysis
into compliance solutions is helping to
provide " faster delivery of information
to drive efficiencies associated with
implementing and monitoring compliance
risk, " which is critical given the
rapid pace of new regulation.
Regtech overall has been seen as a
boon to banking because it takes the
often tedious but necessary tasks of
filtering huge amounts of customer,
onboarding, employee and transactional
data and sifting for possible
red flags. Experts say marrying existing
and emerging regtech solutions
to more advanced data analysis tools,
even utilizing artificial intelligence (AI)
and machine learning, will leapfrog
the technology ever further forward,
allowing for cleaner and more accurate
data to be collected from legacy or disparate
systems more quickly.
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Community banks can branch out
Many community banks that may not
have considered regtech now have
opportunities to embrace this growing
category of fintech. " Within community
banks in specific, the landscape
for regtech is still at a fairly underdeveloped
stage, " says Gilles Ubaghs, a
senior analyst for Boston-based Aite
Group. Since many community banks
rely on their core provider for solutions,
Ubaghs says that it is only in
recent months that banks " are starting
to branch out and work more
directly with smaller scale fintech
[and] regtech providers, " which might
offer more advanced solutions for data
analysis utilizing AI, machine learning
or cloud-based delivery models. Much
of this development is centered on
automating onboarding and improving
the customer experience, including
KYC requirements, he adds.
Colin Whitmore, also a senior
analyst at Aite Group, says machine
learning-based data analytics is also
being incorporated into financial crime
compliance solutions, often involving
cloud-based services through an
application programming interface
(API) to make implementation faster
and cheaper. Assessing potential risk
of all varieties, especially in terms
of KYC, has been aided greatly by
advanced analytic techniques such as
machine learning and AI, according to
Justin Gagne, the head of data science
and analytics for Artis Technologies
in Atlanta.
" These technologies provide
ML-driven services built from massive
datasets collated from giants in the
banking and e-commerce industries,
enabling companies to have big data
tools without the pain of managing big
data themselves. The net effect being,
for consumers of these tools, a large lift
" The regtech space is especially
promising for community banks
because the availability of off-theshelf
solutions can increase efficiency
and lower costs ... "
-K. Thomas Ko, Stroock & Stroock & Lavan
http://www.Independentbanker.org
Independent Banker - October 2020

Table of Contents for the Digital Edition of Independent Banker - October 2020
