Independent Banker - September 2024 - 47

" Compliance involves collective
responsibilities, and vigilance is
essential. And while it continually
evolves, there's no need for fear.
You take measured steps, seek
clarifi cation when uncertain and
collaborate to ensure adherence. "
-Debbie Robertson, Grand Rapids State Bank
How can
intelligent
automation
ease
compliance?
eff ective dates will be extended day by day while
the injuction remains in place.
" The new rules are so complex and can be very
confusing, " says Snyder. " For compliance or
CRA offi cers to learn all of that, and then fi gure
out how to comply with all of it and then train
staff , that's the tough part. "
³ 1071 small business lending leads. Tack
onto that the implementation of the Consumer
Financial Protection Bureau (CFPB) 1071
Small Business Lending Rule, which requires
fi nancial institutions to compile, maintain and
submit to CFPB certain data on applications for
credit for women-owned, minority-owned and
small businesses.
As a result of an ICBA legal challenge to the
1071 rule, and the issuance of a temporary
injuction in that case, the CFPB has provided
updated implementation and fi ling dates. Tier
two institutions (moderate volume lenders)
must be compliant by Jan. 16, 2026, with the
fi rst fi ling deadline June 1, 2027, and tier three
(smallest volume lenders) have until Oct. 18,
2026, to comply, also with a fi rst fi ling deadline
of June 1, 2027. Community bankers should
also make note of the interconnectedness
of elements of 1071 with those found in the
updated CRA requirements.
According to the Deloitte report Intersection
of Section 1071 and Proposed Community
Reinvestment Act (CRA) Modernization Data
collection and Reporting Requirements, " As
90%
of ICBA member
community
bankers said the
current regulatory
environment is more
challenging than it
was five years ago.
When regulatory volume soars,
technology can ease some of the
burden. Embracing intelligent
automation, like robotic process
automation (RPA), can support
more efficient internal procedures
and, in turn, give time back to
compliance staff.
For instance, applying an RPA
system that automates the generation
and submission of regulatory reports
would eliminate the hours required
to manually assemble the details. Or,
if a bank uses technology to support
automated transaction monitoring,
screening against anti-money
laundering watch lists and generation
of suspicious activity reports, it
could save staff resources in both
manual review and report generation.
Automation also can support risk
mitigation by assessing a bank's credit
risk, market risk and operational risk.
While all these instances still
require manual intervention from
staff, intelligent automation can
simplify the more repetitive piece of
the process, freeing up staff time to
address the strategic components of
71%
of ICBA members
identified
regulatory factors
as one of their
bank's top three
challenges.
Source: ICBA
compliance considerations.
" Using intelligent automation
technology to keep up with compliance
and risk management is no longer an
option, " says Todd Michaud, president
and CEO of fintech HuLoop Automation,
an ICBA ThinkTECH Accelerator
participant. " It's a necessity. "
independentbanker.org // 47
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Independent Banker - September 2024

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