4 questions to ask regtech vendors

first_imgThe evolving regulatory technology marketplace presents both opportunities and challenges for credit unions. Today’s “regtech” providers are focused on the application of advanced, innovative technology, such as machine learning and artificial intelligence, to the practice of regulatory compliance. In general, these providers and their products offer fairly cost-effective solutions. New products, creative business models and smart integration strategies have the potential to create economies of scale within the regulatory compliance function. Today, this is largely achieved through the process of compliance automation.By automating otherwise time-consuming processes, credit unions can focus their people resources in other areas.  Another benefit of automation, specifically when dealing with the compliance function, is a much deeper and valuable application of data. There are regtech solutions that propose to automate  everything from modeling risk to updating compliance manuals.  Yet for every benefit of regtech integration, there is a potential downside. Many contemporary regtech providers operate in a cloud environment, which calls for increased diligence.  Credit unions considering a partnership with any cloud-based vendor must ensure the potential partner has robust security protocols, as well as tested business continuity processes, in place. This is new technology, so the likelihood of bugs is fairly high. Is your credit union prepared to act as the guinea pig that will sniff out and help eradicate those bugs?The other component to consider is how examiners will react to a regtech partnership. Regulators tend to err on the side of caution. They are conservative, and the idea of so much information being stored in the cloud, outside of the credit union’s immediate control, could make an examiner nervous. Nervous examiners can equal increased scrutiny.Regulators also tend to be concerned with vendors that are new to any line of business. That said, when it comes to regtech, every vendor is new. It’s still an emerging field, after all. So credit unions should be prepared – perhaps even overly prepared – to explain how any regtech solutions in play at the cooperative adds value to the member while also protecting their personal data.Before integrating a regtech solution at your cooperative, there are a few questions you might consider asking of the provider:May we talk with your clients? You want to be aware of the vendor’s current customer base so you can understand how your credit union fits into their existing client profile. Tap their referrals for stories. How has the provider and its early adopters weathered first-mover storms? How have they worked with other credit unions to iron out the kinks? What were those kinks, and have they been fully resolved?What are the qualifications of your principal employees? Don’t be afraid to ask for resumes. You want to understand the backgrounds of those leading the company to ensure they can apply a 40,000-foot view to their products. What skills or experience do they bring to the table? Do they have the expertise to enhance the compliance function while also keeping sensitive information secure?Which security protocols are in place and which are planned for the future? Fraud trends change. Malware, ransomware and phishing attacks evolve. How is the cloud-based regtech vendor prepared to not only thwart intrusion attempts today, but also into the future?How does the product actually work? Having a good understanding of how regtech automation integrates with your systems is essential. Without this information, your credit union cannot prepare its own policies and procedures to play with the vendor’s solutions in the most efficient, most secure, way.While there are some tasks that will never be replaced by good old-fashioned boots on the ground, embracing technology is smart. Innovation is the only way we can, as an industry, remain relevant to a rapidly changing consumer expectation of the financial institutions they choose to do business with. The compliance function is no different. As new and more demands on compliance officers and their teams emerge, we will have to evolve to manage both the day-to-day and the strategic needs of sound regulatory compliance. Regtech represents an outstanding opportunity to do our jobs better; we just need to do what we do best, which is to proceed with caution and diligence. 32SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Cindy Williams Cindy Williams is vice president of regulatory compliance for PolicyWorks, a national leader of credit union compliance solutions. She can be reached at cindyw@policyworksllc.com. Web: www.policyworksllc.com Detailslast_img read more

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Wyandanch Pedestrian Fatally Hit by Truck

first_imgSign up for our COVID-19 newsletter to stay up-to-date on the latest coronavirus news throughout New York A 58-year-old man was fatally hit by a truck in his hometown of Wyandanch on Sunday night.Suffolk County police said Keith Norman was struck by a GMC pickup truck that was making a left turn from Straight Path onto Long Island Avenue at 8:30 p.m. Sunday.The victim was pronounced dead at the scene. The driver was not injured.First Squad detectives impounded the truck, are continuing the investigation and ask anyone with information on this crash to call them at 631-854-8152.last_img read more

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EU Justice Court Rules German Feed-In Tariffs Not State Aid

first_imgThe European Court of Justice has annulled the Commission’s decision that feed-in tariffs, as provided by the German 2012 renewables law EEG, constitute state aid.The World Wind Energy Association explains that the European Commission pressured Germany and other governments to wrongly notify feed-in legislation as state aid, which caused feed-in legislation to be substituted with a system of auctions.The decision by the court thus reveals that there has been no legal basis for such a switch which puts the successful transition towards a renewable energy based economy at risk, WWEA said.“According to the Court of Justice, the General Court was wrong to find that the funds generated by the EEG surcharge constituted State resources,” the court said.“It follows that a factor required in order to classify as ‘aid’ advantages resulting from the mechanisms established by the EEG 2012 is lacking.” The EEG surcharge cannot be assimilated to a levy since the EEG 2012 does not require suppliers to final customers to pass on the amounts paid in respect of the surcharge to customers, the court stated, adding that the fact that in practice the financial burden resulting from the EEG surcharge was passed on to the final customers is not sufficient.According to the court, the General Court, on the other hand, failed to establish that the state held a power of disposal over the funds generated by the EEG surcharge or even that it exercised public control over the transmission system operators responsible for managing the funds.The Court of Justice also finds in particular that the fact that the funds from the EEG surcharge are allocated exclusively to the financing of the support and compensation schemes tends rather to show that the state was specifically not entitled to dispose of those funds, that it is said to decide on a different allocation.Although the factors accepted by the General Court permit the conclusion that the public authorities monitor the proper implementation of the EEG 2012, they cannot permit the conclusion that there is public control over the funds generated by the surcharge, the court writes.“Legislation related to renewable energy should be based on the successful principles which are well known, including feed-in tariffs which allow for a broad, non-discriminatory participation of all potential investors,” said Stefan Gsänger, WWEA Secretary General.“Considering the huge amount of investment that is required to shift the world’s energy supply away from fossil and nuclear resources towards a full renewable energy supply, it is of utmost importance that investment is in the hands of as many citizens as possible. New regulatory frameworks which aim at supporting integrated approaches should also take broad participation and broad distribution of benefits as a basis.”last_img read more

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Guardiola risks Premier League fine after Spurs defeat by leaving media hanging

first_imgPEP GUARDIOLA may face a Premier League fine after leaving the media hanging for 45 minutes following Manchester City’s 2-0 defeat by Tottenham.The Manchester Evening News claims that the Spaniard’s lateness meant that home manager Jose Mourinho had already finished his post-match press conference by the time he emerged.1 Pep Guardiola kept his Manchester City players in the away dressing room after defeat at SpursCredit: EPAA debut goal from Steven Bergwijn followed by a strike from Son Heung-min condemned Guardiola’s side to their sixth league defeat of the season.Pep’s frustration was compounded by City’s domination in the game, which saw them miss a penalty in the first half before the tide turned in the second following Oleksandr Zinchenko’s red card.The former Barcelona boss responded by locking his players in the away changing room for three-quarters of an hour after the final whistle before emerging to face the press.But when Guardiola eventually emerged to face the Sky Sports cameras, he insisted the delay was not because he was criticising his stars.He said: “Never. With this performance? How should I be critical after this performance?”I was talking to my staff and my wife. After this performance it would be an incredible mistake to say how bad they are. We created chances and conceded few.”He later told reporters in a press conference when asked what he said: “How proud I am of them, but it’s not enough. I like to see my players playing that way.LADBROKES 1-2-FREE Simply predict Brighton vs Watford, Sheff Utd vs Bournemouth and Man City vs West Ham scores this coming weekend and win £100Most Read in FootballTHROUGH ITRobbie Keane reveals Claudine’s father was ’50-50′ in coronavirus battleTOP SELLERGavin Whelan has gone from League of Ireland to David Beckham’s InstagramPicturedAN EYEFULMeet Playboy model and football agent Anamaria Prodan bidding to buy her own clubExclusiveRIYAD RAIDMan City’s Riyad Mahrez has three luxury watches stolen in £500,000 raidI SAW ROORodallega saw Rooney ‘drinking like madman’ & Gerrard ‘on bar dancing shirtless’NEXT STEPJonny Hayes set to move to English Championship having been let go by Celtic“Never when we lose do I stay away from my players because I know them.”We lost the game so we talked about how to move forward and keep going. There’s a lot of months to play and try to do it.“If I would find the solution I would try to work on that. It would be a mistake not to let them feel incredible and fantastic after that game, football is sometimes like this.”Pep Guardiola doesn’t appear from dressing room for 45 minutes but claims Manchester City ‘played well’ in defeat at Tottenhamlast_img read more

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