March 26, 2013 REGULATORY COMPLIANCE: DRIVING THE GROWTH OF BANK TECHNOLOGY

Berkery Noyes’ most recent white paper covers regulatory compliance trends in the bank technology sector. 

The piece highlights electronic record keeping and social media monitoring as two of the key areas undergoing a significant amount of change. There is currently strong demand for technology that assists the banking sector with mitigating risk and strengthening compliance.

First, the full outcomes from the implementation of Dodd-Frank are only starting to have an impact. Perhaps the most visible example is the Consumer Financial Protection Bureau (CFPB). The CFPB is beginning to review copies of monthly statements, consumer payment records, and bills from vendors documenting services related to loan accounts. The agency has also been given responsibilities under Title X of Dodd-Frank that were previously held by other authorities.

Second, social media is being used by banks and credit unions to solicit new customers, interact with current account holders, and disseminate information to a broad audience. However, many financial institutions lack a comprehensive internal policy that outlines their social media practices. Certain firms are using monitoring software and other tools to avoid potential compliance issues.

Technological growth in specific bank niches is often followed by investments in products and companies that offer these innovative solutions. This is a positive sign in particular for companies that facilitate electronic record keeping, as well as those that help monitor social media and traditional marketing efforts.