Forget the Roaring Twenties of the last century. Four years into the 2020s, and it’s looking like we might be living through the Turbulent Twenties. 2023 was no exception.
In 2023, financial institutions weathered the failure of SVB and the consequences of surprisingly fast and high interest rate increases. They watched the “will they, won’t they” drama surrounding the Consumer Financial Protection Bureau and 1071 implementation (spoiler alert: It’s looking like they will). They witnessed a revolution in artificial intelligence, and wondered what it means for their institution. They saw the financial repercussions of institutions facing fair lending violations. And some experienced the heartbreak of natural disasters in their communities.
What does 2024 hold in store?
While we don’t have a crystal ball, we do have tools that can help make us more prepared, responsive, and resilient. Many of our 2023 blog posts touched on strategies for dealing with specific regulations and operational scenarios while others offered a more general perspective. To help you prepare for 2024, here are 8 blogs from 2023 that can help you set the stage.
1. Key Risk Indicators for Banks, Credit Unions and Other Financial InstitutionsThe title may not be eye-catching, but this post packs a punch. Want to predict and identify risk? Key risk indicators (KRIs) are the tool for you.
How do they work? What are some KRIs your institution can use? Read the post to better understand this essential early warning system.
2. Third-Party Service Providers and Vendor Management: What Banks Need to Know About New Guidance
Remember when the Interagency Guidance on Third-Party Relationships: Risk Management (aka the new vendor management guidance) came out in June? Remember how it took effect immediately?
This blog post and the accompanying webinar explain the biggest changes in expectations for third-party vendor management at banks and what you should look at. Check in with these resources if you want to get an idea of how your vendor management program aligns with regulatory expectations.
3. Emerging Risks in Banking 2023
This blog post focuses on emerging risks in 2023 (including regulatory change, interest, credit and liquidity risk, and cybersecurity). It’s safe to say that these risks will remain a high priority in 2024. Check it out for insights into risk management.
4. 1071 Update
Our 1071 Update post wins the award for most-updated blog post of 2023. From the publication of the final rule to the many, many lawsuits filed and judgements issued, this is a post that we’ll continue updating in 2024. Bookmark it if you want the latest on 1071 next year.
As a bonus, here’s another helpful post: Section 1071 Data Collection.
5. 2023 Regulatory Enforcement Actions
Enforcement actions are cautionary tales for bankers. While the regulatory agencies publish their supervisory priorities each year, enforcement actions provide real-life examples of institutions that came up short at exam time.
This post breaks down some of the most significant enforcement actions of 2023 and the lessons learned. And if you want to know more about working with examiners, check out this post, Ask the Examiner: Your Exam Questions Answered by a Former OCC Examiner, and the accompanying on-demand webinar How to Work with Examiners.
6. Can ChatGPT Help Your Compliance Department? Not Yet.
When we wrote this post back in February, ChatGPT had been out for less than three months. Since then, the world of AI has rapidly evolved. Will there be a greater use case in 2024? We’ll find out. Until then, here’s a reminder why you don’t want to use ChatGPT to answer your compliance questions.
7. DOJ Settles $9 Million Redlining Suit with Bank
Fair lending was under government scrutiny in 2023 as the continued tag-team effort between the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) resulted in several multi-million-dollar settlement agreements against financial institutions of all sizes.
How did the institutions get into trouble? What should your institution do to avoid making the same mistakes? We cover that and more in this blog post.
8. Is Your FI’s Contingency Funding Plan Exam Ready?
Asset-liability management was top of mind in 2023 and will continue to be a major issue in 2024. This blog post outlines the elements of a contingency funding plan and how to prepare for increased regulatory scrutiny in that area.
Want even more insights into 2024? Register for our webinar!
Fair Lending: Get Ready for 2024.
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