Five years and 398 new regulations, into Dodd-Frank and banks are still battling onerous compliance processes that waste valuable time and money. According to the American Action Forum, U.S. financial institutions have lost a collective 61 million “paperwork” hours – the time needed to complete paperwork and filing required by law – since Dodd Frank’s implementation. That’s the equivalent of 30,370 employees working full time to complete annual paperwork (“paperwork” here mostly taking the form of both physical and electronic filing).
So what’s a bank to do? We can’t solve every compliance-related problem. However, we can help with a lot of them. Here are two examples.
This is a big one and technically, it’s not a part of Dodd-Frank. Regulation E was amended a few years ago to mandate (among other things) that financial institutions require their customers to opt in or opt out of overdraft protection on checking, savings and other EFT-enabled accounts. For many banks, adding this election to all new accounts is a manual process. Oklahoma-based Fort Sill National Bank used to add these elections manually, twice each day, to over 3,000 accounts per month. This meant pulling someone off of their regular job to sit at a work station and update account information in their core for hours on end. Today, the bank uses Foxtrot software to automate this and other processes, saving them hundreds of hours each year and allowing workers to focus their energy in more productive ways.
New HDMA requirements as part of Dodd-Frank require that more – and more complex – information is included in new mortgage lending reporting to the government. This could mean hours of manual preparation and submission of HMDA data including geocoding, summary performance reports, and rate spread analysis reports by race, ethnicity, and gender. This and other demographic information must be extracted, scraped, and compiled from your core and LOS, then input by hand into a number of difference electronic forms. Moreover, it’s not just the time and effort required to report; errors inherent in these sorts of manual processes can incur delays and fines for lenders. Instead, consider using Foxtrot to automate your HDMA and other reporting to save time. Our automation technology scrapes data from any core or lending system, compiles it, then inserts the information into any number of web-based forms without error.
So while we wait on Washington to ease regulatory restrictions, there is a common-sense way to alleviate some of the paperwork burden they cause today: automate your compliance processes with Foxtrot. No doubt as you look around your branch or office, you can identify other processes that would be better performed by one of our “digital” employees. Contact us today to hear more.