Katie Grey Ferrell, CRCM, CAMS

The current challenges of ACH fraud require an industry wide approach. Download our new infographic, NACHA’s New Rules: What Your Institution Needs to Know, to learn how your institution can be prepared to respond to this evolving landscape. https://buff.ly/3zMrvbh

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⏰ BREAKING: The Fed, FDIC, and OCC just released a new guide to help Community Banks manage their third party risk. One key point of emphasis: "A community bank may engage an external party to conduct aspects of its third party risk management. However, the bank cannot abrogate its responsibility to employ effective risk-management practices, including when using a third party to conduct third-party risk management on behalf of the bank." Outsourcing third party diligence to a firm isn't enough - it's crucial to invest in internal operations because the bank is ultimately responsible. 🗒 Reach out to our team at [email protected] if you'd like to learn how we can help strengthen and streamline in-house efforts.

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In 2022, Beneficial State Foundation (BSF) launched the Equitable Bank Standards. Since then, much has changed in the financial industry and the Standards marketplace more generally. As we prepare to revise the Standards in 2025, we want to hear what you believe is needed for financial institutions to better foster an equitable and regenerative future for all communities. Share your feedback on which standards resonate, and suggest any updates, refinements, or additions that can drive meaningful change. Your insights will guide us in making the Standards more practical, user-friendly, and impactful for the financial industry. #EconomicJustice bit.ly/ebspubliccomment

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Make your voice heard! Beneficial State Foundation is seeking feedback on what equitable banking could look like. In preparation to update the 2022 Equitable Bank Standards, they want to hear from you - there are 3 weeks left! Share your input here: bit.ly/ebspubliccomment Take a look at the current Equitable Bank Standards here: https://lnkd.in/gsN3ZcWy #financialbelonging #financialempowerment #financialwellbeing #financialinclusion #financialaccess #BankOn #BankOnWA

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For the first time, RDFIs will have a defined role in monitoring ACH payments they receive. This significant development, approved by Nacha members, aims to combat fraud, including business email compromise (BEC), associated with credit-push payments. As Jane Larimer, Nacha President and CEO, points out, "All participants in the ACH Network have a part to play in reducing the incidence of fraud and recovering when fraud has occurred." Learn more in our April 2024 Innovating Payments Executive Summary— Nacha Rules Take Aim at Credit-Push Fraud: https://lnkd.in/ezsgudgX. Plan to join Sean Carter, AAP, APRP, Mark J. Dixon, CTP, AAP, APRP, NCP, Mary Morrison, AAP, APRP, NCP, CAMS, and Patty Presta for a comprehensive two-part series, "Diving Into the Operation Impact of the New ACH Rules," on May 31 and June 07, 2024, where they will delve into the implications of these new rules, offering insights on implementation, procedures, policy updates, audits, risk assessments, and organizational engagement. 🔍 Curious about engaging with third-party providers? 📝 Wondering about new procedures and policy updates? 🤔 Unsure about ACH audits or risk assessments? Get the answers by registering for Diving Into the Operation Impact of the New ACH Rules: https://lnkd.in/e7y73DN2 #ACH #FinancialServices #FraudPrevention #RegulatoryCompliance #ProfessionalDevelopment

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The #CFPB issued an interpretive rule describing how lenders issuing digital user accounts to access credit are also “creditors” subject to subpart B of Regulation Z. The rule makes clear that lenders issuing BNPL products and other digital user accounts to access credit will be regulated like credit card providers. Read more in this #clientalert: https://ow.ly/8IYm50RTU3w #legalnews

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This just in 📣: The Consumer Financial Protection Bureau recently released their final rule to supervise some of the largest digital payment apps to ensure they are following federal law just like #Banks, #CreditUnions and other financial institutions. Read more about the final rule and comments from CFPB Director Rohit Chopra: https://lnkd.in/eNFTcUGB

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The FDIC, OCC, and Federal Reserve recently released a supplementary resource for #communitybanks. This guide offers many helpful #TPRM considerations that community banks can implement. This blog will cover the main components found in the guide and some tips on how to use it within your own organization: https://lnkd.in/gtqR8ga2 #thirdpartyrisk #vendorriskmanagement

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The #ACHNetwork is constantly evolving. In fact, Nacha's Membership recently approved a number of amendments to the Nacha Operating Rules. To ensure you and your organization are up to date on the latest when it comes to the ACH Network, consider our ACH 101: Fundamentals for Operations & Frontline two-part virtual workshop, taking place May 8 & 9, 9-10:30 a.m. Central. This workshop will provide an overview of the ACH Network including defining the participants, explaining the transaction flow, and reviewing common exceptions. Given the changing environment, whether you are new to ACH or a seasoned pro, this workshop will prove beneficial to you.  https://lnkd.in/eX72cbWH Pam Rodriguez, AAP, CIA, CISA Danita Moss, AAP, NCP Dominic Plumeri, AAP, APRP David P. Catherine Bishop, AAP, APRP, NCP Sandra Parker

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Each handbook contains all the knowledge necessary for compliant ACH operations in a condensed format that is more easily referenced and digested by the Originator. It includes an overview of the ACH Network, its participants, and why it is a safe, efficient payment system. 🔗Link to purchase: https://lnkd.in/gMM_r_Jr #Payments #Publications #Origination #Handbook #ACH

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New blog post: CECL implementation is creating new norms for banks and credit unions. Learn which model inputs your financial institution should be evaluating to ensure you're maintaining a proactive approach to CECL. Read today: https://lnkd.in/eSHWeF-t Thanks to Zach Englert for sharing! Empyrean Solutions

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In this webinar on September 5, banks and credit unions will learn how to develop a robust scorecard that applies qualitative factors more objectively, ensuring accuracy and consistency. Learn more and register today: https://buff.ly/4bDMycV

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What's new in the Compliance Corner: FFIEC guidance, DFPI webinars, alerts and more. Read more here: https://buff.ly/4e4or9h #CANVLeagues #CreditUnions #Compliance

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If your financial institution or credit union assigns scores by hand, runs calculations, or uses an algorithm, risk scoring is a crucial part of a well-oiled compliance system. ✅ Join former OCC regulator Ryan McInerny in our upcoming webinar on May 30th to discover how to align with your unique risk profile and ensure you're not missing suspicious activity. ✅ Register today! >> https://lnkd.in/dZ_7bHu2 #Riskscoring #RiskScout #Streamlinedcompliance #Financialinstitutions #Creditunions

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This week in exciting #OpenBanking news: last Wednesday, the Consumer Financial Protection Bureau (CFPB) announced a new rule explaining the qualifications and attributes a standard setting body will need to be recognized by the CFPB. This is significant because recognized industry standard setting bodies will be able to issue standards to companies so they can comply with the CFPB’s upcoming Personal Financial Data Rights Rule.   “Industry standards can be weaponized by dominant firms in order to maintain their market position, undermining competition for all,” said CFPB Director Rohit Chopra in the CFPB's press release. “Today’s rule will prevent these firms from rigging standards in their favor by identifying attributes the CFPB will use to recognize standard setters.”   To gain recognition from the CFPB, a standard setting body will need to display: ·  Openness ·  Transparency ·  Balanced decision-making ·  Consensus ·  Due process and appeals It is widely expected that the FDX API from the Financial Data Exchange will be declared as official standard, based on its existing market dominance. However, the CFPB has made it clear that FDX should not take this for granted, and with the release of these guidelines, they have set the bar for selection quite high, level playing field in the open banking ecosystem.   Read more in the release here: https://bit.ly/3KydorY

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NCUA just issued its Q2 Credit Union Data Summary. Per Chair Harper: “The credit union system overall remains largely stable in its performance and is relatively resilient against potential economic disruptions. However, challenges persist across the system and at specific institutions,” Chairman Todd M. Harper said. “Notably, an increasing segment of credit union membership continues to experience financial strain as evidenced by a steady increase in the loan delinquency rate, charge offs, and borrowing using the NCUA’s payday alternative loan product. While interest rate and liquidity risks have ebbed recently, we are seeing growing signs of concern in loan performance, capital, and earnings as deposit levels have dropped. Credit union managers must continue to monitor their institution’s performance and balance sheets and act expeditiously to prevent small anomalies from growing into big problems.” The referenced financial strain can be seen in these stats in particular: 1. Delinquency rate increase: Delinquency rose to 0.84 , up 21 basis points from a year earlier. 2. Net charge-offs increase: The net charge-off ratio increased to 0.79% in Q2, up 26 basis points from Q2 2023. This substantial rise in loan losses is impacting some credit unions' profitability and capital positions. 3. Declining ROA: The ROA decreased to 0.69% in Q2 2024, down from 0.80% in Q2 2023. 4. Rapid share certificate growth: Share certificate accounts grew by 30.6% over the year, reaching $528.2 billion. This growth is a "return to the mean". 5. Commercial loan delinquency rate spike: The commercial loan delinquency rate rose to 0.94% in Q2 2024, up 52 basis points from a year earlier. This sharp increase indicate increasing stress in credit unions' commercial lending portfolios. 6. Credit card delinquency rate increase: The credit card delinquency rate rose to 1.98% in Q2 2024, up 44 basis points from a year earlier. This could be an early indicator of broader consumer financial stress. 7. Provision for loan and lease losses increase: This expense increased by 41.4% over the year to $13.0 billion at an annual rate in the first half of 2024. The significant rise suggests credit unions are anticipating higher future loan losses - and is likely also linked to ramifications of CECL. 8. Slower asset and deposit growth: Total assets grew by only 3.5% and total deposits by 2.6% over the year, which is slower than historical averages. When deposit growth is less than cost of funds - its really a decline...

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Great insights from Angela! Are there any additional takeaways from these top 5 Webster First blog articles? Let us know what you think.

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Heads up, bank board members and risk managers! The FDIC is proposing new guidelines on risk management for large banks. This could impact your institution if it has over $10 billion in assets. The guidelines cover areas like board oversight, committee structure, and communication. Guidelines - similar to these - previously issued by the US Department of the Treasury and the Federal Reserve Board have found there way into many industries beyond banking and financial services. Get a head start on compliance by reviewing (or starting!) your ERM Program https://bit.ly/3CSCwXM #riskmanagement #banking #FDIC #ERM

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