TOPIC: FDIC

De Novo Banks vs. FinTechs: What do you think the future of start up banks will be?

Hi Everyone,
Did you get a chance to see Jelena McWilliams, Chairman of the FDIC speech last week?
If not here it is https://www.fdic.gov/news/news/speeches/spmar1419.html. We found the part about De Novo Banks the most interesting. Only 2 were created from 2010-2016. Do you think the initiatives are enough on the FDIC’s part to help to create more banks, or do you think Fintechs are going to be the new banks? What are your thoughts?

    Is This Partnership a Right Fit? More than 50 Banks Found Out Firsthand.

    In January, 56 community banks from 20 states joined Bankers Healthcare Group for a behind-the-curtain experience at our Informational Regional Seminar in Nashville, Tenn.

    Our 75 attendees heard from BHG’s Founder/Chairman/CEO Al Crawford and c-suite leadership team in finance, credit, underwriting, compliance, marketing, sales, and analytics. This was a great opportunity for them to learn about our business model, commercial medical loan program and financial strength, and uncover new revenue opportunities for their banks.

    We had a great mix of prospective customers and current customers from some of BHG’s 940 bank partners, which gave everyone a chance to network and learn. Prospective customers love to hear about the experiences of current customers, while current customers appreciate the business and product updates, as well as the opportunity to connect with key BHG contacts.

    Our seminars are a great way to get to know BHG—and we hold them throughout the year, across the country. If you’d like to attend an upcoming seminar, please email bhgbanks@bhg-inc.com or call 877-731-6562 to get the details!

    About BHG: Bankers Healthcare Group (BHG) is the leading provider of financial solutions for licensed healthcare professionals. The company originates, underwrites and funds medical and professional loans before selling them to local banks nationwide.

    To date, BHG has underwritten nearly $15 billion in commercial loan requests with an average size of $100,000, providing a network of more than 940 U.S. community banks a source for premium loans, portfolio diversification, and competitive yields without overhead costs traditionally associated with this quality borrower. Banks purchase BHG loans through a secure, online system that allows for daily sale and delivery of loans. This has been a highly effective channel for a bank to quickly approve and purchase loans according to their underwriting standards. BHG’s 2018 sales distribution has averaged $4 million per day and new loans are posted daily.

    Pinnacle Financial Partners, Inc., and its subsidiary Pinnacle Bank hold a 49% total interest in BHG.

      How the Government Shutdown is Affecting Regulatory Agencies

      Good afternoon, Bankers! Today's topic is the current government shutdown. This post originally appeared on the Ncontracts blog.

      How the Government Shutdown is Affecting Regulatory Agencies

      The partial government shutdown has furloughed workers at the national parks, the Smithsonian museums, the IRS, courts, and other federal institutions, but enforcement actions from federal banking agencies continue...

      READ THE FULL PDF: Download the attached PDF

        Educational Seminar in Nashville, 2019

        See why more than 925 of your peers have purchased loans from Bankers Healthcare Group, at the upcoming Nashville Info Seminar.

        • Engaging seminar - Hear from the Founder/CEO and the c-suite leadership team in finance, credit, regulatory, marketing, sales and analytics.
        • Understand the 5 convenient, hassle-free methods to purchase loans.
        • Discover additional revenue opportunities for your bank:
          • Consumer loans to licensed medical and other professionals
          • Patient lending – connecting community banks to hospitals and surgery centers
        • Network with key BHG personnel and other community banks from around the US.

        Email us at bhgbanks@bhg-inc.com or call 866-461-5069 to find out the details!

        "The BHG Info Seminar was an excellent experience. We are new to BHG, having just purchased our first loan last month. It’s was a valuable experience to have the company’s staff answer your questions and talk to other banks who have experience with BHG. I was able to learn how they manage their portfolio and loan terms. The event was first-class, all the way. I came away very impressed with BHG." – Minnesota Bank President

        About BHG: Bankers Healthcare Group (BHG) is a well-established, direct lender that has a commercial loan program specifically tailored to the business needs of licensed healthcare and other professionals. BHG has provided over $4 billion of these originated, underwritten and funded loans to 925+ community banks throughout the US since 2001.

          Joint Statement Offers Support and Guidance for New Innovation Pilot Programs

          Some financial institutions have had a fear that they will receive regulatory scrutiny for exploring emerging technologies in the BSA/AML space. This week, the Fed, FDIC, FinCEN, NCUA and OCC (the Agencies) laid some of that fear to rest by collectively issuing a statement showing strong support for innovation in the fight against money laundering and terrorist financing. The joint statement aims to encourage responsible innovation to protect our financial system from illicit financial activity.

          In our latest blog, Jessica Caballero, CRCM explains what this means for financial institutions and their BSA programs and advice on how to implement a pilot program at your institution.

          Read the full blog.

            CBANC Premium - Workspace Tips

            Manager at a Company (USA)

            Here is a quick tutorial on how to add users to your CBANC Premium Workspace application. Workspace is a central source of truth for your policies, procedures, and other important documents. It also includes 25 policy & procedure checklists, updated by experts as regulations change, to help your team hit the ground running. Workspace is great for collaborating with your board of directors, impressing your examiners, and streamlining policy and procedure management. Works great on iPads without the need to download additional software and has bank-level security built in.

              Reminder! Free May Webinar - Managing the Risk of Cyber Threats: Assessing Third Parties and Measuring What Matters

              Don't forget! You are invited to our May webinar discussing the risks and opportunities associated with cyber threats. Register for free today! If you are not able to make it to the live event, we will send you the recording afterwards.

              A recent Harvard Business Review survey stated that 85% of those surveyed expect financial impact to rise from cyber breaches while only 23% of respondents said their strategic plan addresses business risk. Join study co-author & leading cyber expert Reid Sawyer and third-party risk expert Michael Berman for a presentation that’s sure to help both C suite and frontline managers better understand the risks and opportunities associated with this timely issue of cyber risk.

              Session takeaways:

              • Exploration of how FFIEC, OCC, FDIC and Fed mandates overlap regarding vendor management
              • Best practices in vendor due diligence reviews and contract management to decrease cyber risk
              • Re-conceptualize threats from a strategic not tactical mindset
              • Mandates for stress testing
              • What the future holds with cyber risk

              Register Today

                Free May Webinar - Managing the Risk of Cyber Threats: Assessing Third Parties and Measuring What Matters

                Hello, Bankers! You are invited to our May webinar discussing the risks and opportunities associated with cyber threats. Register for free today! If you are not able to make it to the live event, we will send you the recording afterwards.

                A recent Harvard Business Review survey stated that 85% of those surveyed expect financial impact to rise from cyber breaches while only 23% of respondents said their strategic plan addresses business risk. Join study co-author & leading cyber expert Reid Sawyer and third-party risk expert Michael Berman for a presentation that’s sure to help both C suite and frontline managers better understand the risks and opportunities associated with this timely issue of cyber risk.

                Session takeaways:

                • Exploration of how FFIEC, OCC, FDIC and Fed mandates overlap regarding vendor management
                • Best practices in vendor due diligence reviews and contract management to decrease cyber risk
                • Re-conceptualize threats from a strategic not tactical mindset
                • Mandates for stress testing
                • What the future holds with cyber risk

                Register Today

                  New Regulatory Guidance About Cybersecurity Insurance

                  Hello, Bankers! Today we are discussing cybersecurity insurance. This post originally appeared on the Ncontracts blog.

                  New Regulatory Guidance About Cybersecurity Insurance

                  Does your institution need cybersecurity insurance? Is it required? If utilized, are there rules? Cybersecurity insurance can protect against financial loss in the event of a cyber incident, but there are many intricate details...

                  READ THE FULL ARTICLE: Download the attached PDF

                    Free Webinar: FDICIA Compliance is at Your Doorstep...Are You Ready?

                    Remaining compliant during the transition to a $1 billion bank requires a more sophisticated risk management structure, which includes the appropriate personnel, as well as accurately documented and effective processes and procedures. In the absence of this, FDICIA compliance is challenging to achieve and unfortunately, many bankers find themselves on the cusp of the asset threshold only to discover that they are woefully unprepared for the transition. Join us on April 10th for this complimentary webinar as we help you better understand the intricacies of FDICIA compliance as well as the practical steps you can take to prepare before you hit $1 billion. Register today: https://register.gotowebinar.com/register/6029247166891222018

                    Blob

                      Weak Vendor Management Trickles Down to Contracts

                      Hello, bankers! Today, we're discussing Vendor Management. This post is the second in a series originally published on the Ncontracts blog.

                      Weak Vendor Management Trickles Down to Contracts

                      Insights from the FDIC watchdog's contract review findings

                      Third-party vendor management is all about managing risk. It's an issue that regulators have been pressing for years, yet it seems that not every financial institution (FI) is getting the message...

                      READ THE FULL ARTICLE: Download the attached PDF

                        Is Your Vendor Prepared for Disaster?

                        Good morning, bankers. Today, we're discussing Business Continuity Planning! This post is the first in a series originally published on the Ncontracts blog.

                        Is Your Vendor Prepared for Disaster?

                        The only thing worse than having a critical system go down is having a critical system go down and having no idea when and in what condition it will come back up.

                        Many pages of regulatory guidance have been written to guard against this situation, yet a recent analysis conducted by the FDIC's Office of Inspector General finds that just half of vendor contracts it reviewed "explicitly included business continuity provisions."

                        READ THE FULL ARTICLE: Download the attached PDF

                          InTREX

                          In mid 2016, the FDIC implemented InTREx with the goal of offering an enhanced, risk-based approach for conducting IT examinations. Since then, we have heard mixed reactions from our clients regarding the new framework and are hoping to better address some of the most common best practices and pitfalls. Please take a moment to complete this brief 3 question survey to help us gain a better understanding of how you are using the new framework: http://bit.ly/InTRExSurvey

                          Blob

                            Blog: Top 10 Risks - Cloud Risk

                            This blog post is part of a series of posts on risks that impact financial institution. See the original article here or download the attached PDF.

                            Cloudy with a Chance of Data Loss

                            Understanding cloud risk's role in vendor management

                            Perhaps there's no buzz word more confusing to bankers and credit union executives than the "cloud." It evokes an ethereal image of data floating safely and serenely overhead, able to materialize on screen with the press of a button.

                            But the cloud is a place on earth. Actually, many places on earth...

                            READ THE FULL ARTICLE: Download the attached PDF

                              Researching Going National

                              Employee at a bank ($915MUSA)

                              Hello,

                              We are an FDIC supervised, commercially focused institution that has a handful of centrally located branches. Recently, I've been asked to research the implications of opening up our commercial lending niches to a national market.

                              For those of you with a national commercial lending market, what are some considerations that I should be looking into? What kind of impact should I consider to our CRA Assessment Area? How do these vary based on if we decide to accept deposits or not?

                              Thanks!

                                Blog: Top 10 Risks - Country Risk

                                Person at a Company (USA)

                                This blog post is part of a series of posts on risks that impact financial institution. See the original article here or download the attached PDF.

                                Top 10 Risks - Country Risk: Why It Pays to Choose Domestic Service Providers

                                Country risk's role in vendor management

                                If you think it’s tricky to keep track of the rules and regulations of your regulatory agency, imagine having to follow the legal, regulatory and operational requirements of foreign countries.

                                That’s exactly what needs to happen if a vendor is conducting any segment of your business in another country. Country risk is “an exposure to economic, social, and political conditions in a foreign country that could adversely affect a vendor’s ability to meet its service level requirements,” according to the FFIEC’s Appendix C ...

                                READ THE FULL ARTICLE: Download the attached PDF

                                  Free Webinar - How to Determine Your Critical Vendors

                                  Person at a Company (USA)

                                  Good morning, bankers! You're invited to join us for a free webinar on November, 16 where you can learn how to determine your critical vendors and how to make sure they don't negatively affect your FI's risk exposure. Can't watch live? Just register and you'll get the recorded version of the webinar. Register Here.

                                  Determining Critical Vendors

                                  What makes a critical vendor different from other vendors? The importance of properly determining your critical vendors is a key factor in your vendor management program. It maps out how you proceed in the vendor management process, with due diligence, monitoring and annual reviews. Knowing what questions to ask is at the forefront. Likewise, identifying who is a critical vendor, how many different types of vendors you should have and the criteria to determine the criticality of vendors is paramount to a successful vendor management program. This webinar will discuss:

                                  • How to determine inherent risk and vendor classifications
                                  • Considerations when risk rating your vendors, from NPPI, GLBA
                                  • Differences in the guidance by federal regulators including OCC, FRB, FDIC, and NCUA
                                  • What ‘critical vendor’ looks like in a post-Equifax breach realm

                                  Join us as we address critical vendors and the role increased vendor risk plays in the financial institution.