5 key strategic issues for financial institutions in 2017
From regulation to technology, where to focus now
Financial institutions face a variety of issues in 2017. Five key strategic areas you should focus on now to drive growth and control risks include:
1. Regulatory hot topics. Regulation continues to heat up for financial institutions. Key regulatory topics for 2017?
- Look at your compliance management system—regulators will
- Evaluate your fair lending practices
- Self-assess your Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) Integrated Disclosure (TRID) compliance
- Ensure integrity of Home Mortgage Disclosure Act (HMDA) and Community Reinvestment Act (CRA) data
- Evaluate your risk management models
- Take a close look at incentive-based compensation packages
- Reconsider your diversity and inclusion practices
2. Anti-money laundering and Bank Secrecy Act compliance.
- Use data analytics to increase the accuracy and efficiency of your AML/BSA practices
- Understand the new customer due diligence rule
- Understand New York Department of Financial Services Rule 504
3. Credit administration. While the economic expansion continues, not all the news is positive. Pay attention to credit quality.
4. Cybersecurity threat landscape. Cyberthreats are growing and evolving. Managing this risk has to be a vital focus for every financial institution.
5. Information technology outsourcing and cloud computing options. IT outsourcing and cloud computing can provide key competitive advantages. Financial institutions looking to do more with less and seeking greater returns on their IT investment are outsourcing a wide variety of functions, including:
- Human resources and payroll
- Risk management
- IT functions
- Core processing
- Independent sales organizations
- IT committee advisors