Insights

Equifax Data Breach – Is Your Identity at Risk?

With over 143 million records compromised, it is very likely that your personal data was compromised in the Equifax data breach.

Sep 11, 2017
Industries: Agribusiness, Construction and Real Estate, Dealerships, FinTech, Financial Institutions, Financial Services, Freshwater, Governments, Health Care, Insurance, Manufacturing and Distribution, Nonprofits, Private Equity
Services: Governance, Risk, and Compliance

About Three Years and Counting

During the next several years, experts project a significant change in the United States payment structure. Regulatory changes as well as a host of other risk areas falling under the scope of enterprise risk management will be in the spotlight due to the massive change. In addition, it will be important to address financial institution payment system connectivity along with that of nonfinancial institutions, including FinTech companies. And for the record, the United States is not alone in the push to expedite payments.

Aug 25, 2017
Industries: Financial Institutions
By: Karen A. Mitchell

Are the Phones Your Employees Using to Contact Consumers Subjecting the Financial Institution to Compliance With the Telephone Consumer Protections Act?

At the recent ABA Compliance Conference in Orlando, Florida, I had the opportunity to hear Jonathan Thessin, Senior Counsel, American Bankers Association, speak on the Telephone Consumer Protection Act (TCPA). I had one of those “Aha!” moments when he was explaining one of the 2015 changes to the broad definition of “autodialer” and how financial institutions could be using one and not realize it.

Aug 25, 2017
Industries: Financial Institutions
By: Cindy L. Mabry

CECL Methodologies Series: Vintage Loss Rate

In our last newsletter, we began a series of articles that will focus on the different Current Expected Credit Loss (CECL) methodologies and their pros and cons. The first methodology we looked at was the cumulative loss rate, CECL Methodologies Series: Cumulative Loss Rate, which is the simplest methodology to use under the new standard, but will require a great deal of qualitative (Q) factor analysis and will likely result in a higher allowance for loan and lease losses (ALLL) balance relative to other available methodologies. In this article, we will explore the vintage loss rate methodology.

Aug 25, 2017
Industries: Financial Institutions
By: Brett D. Schwantes

Cyber Threat Predictions for 2017

We live in a never-ending game of cat and mouse pitting security professionals and information technology administrators against bad actors out to steal money, corporate secrets, and personal identifiable information (PII). Methods used by bad actors have evolved over the years as security measures have been put in place. 2016 saw a continued rise in phishing and ransomware attacks. If bad actors can find a way to profit from these tactics, 2017 will continue with this trend and introduce newer threats.

Aug 25, 2017
Industries: Financial Institutions
By: Joel R. Lego

Does Culture Drive Your Strategic Initiatives?

Strategic planning is a time to harness the thoughts, ideas, and energy of your financial institution’s leaders to identify key strategic issues, develop strategies and actions plans to address those issues, build capacity to implement action plans and create a single-minded team focus on desired outcomes.

Aug 25, 2017
Industries: Financial Institutions
By: Susi Massaro, Heather L. Debelak

Historic Tax Credits and the R&D Credit for Financial Institutions

With the current top C-corporation tax rate at 35% and the top individual rate at 39.6% for S-corporation shareholders, many financial institutions actively look for deductions to take some of the bite out of their tax bill. The use of tax credits can be an extremely effective way to reduce tax liability. While tax deductions reduce the amount of taxable income to which the tax rates are applied to figure the liability, tax credits are a dollar-for-dollar reduction of the tax liability itself. There are a plethora of credits available, but this article will focus on two types of credits that are increasingly being used by financial institutions: historic tax credits and the research credit. 

Aug 25, 2017
Industries: Financial Institutions
By: Brianna N. Komppa

Improving Your Interest Rate and Liquidity Risk Process

A steep yield curve usually results in strong financial institution net interest margins. Unfortunately, the Great Recession lowered both short- and long-term interest rates to record lows and flattened the yield curve, which decreased net interest margins. For the past eight-plus years, the market has been forecasting higher interest rates. Since November 15, 2016, the Federal Reserve has raised short-term interest rates four times, each by 25 basis points, so short-term interest rates have risen modestly, but less than forecasted. In the same time frame, the 5-year rate in the Treasury curve has not experienced any significant increases at all. This has resulted in a continuing flattening of the yield curve. 

Aug 25, 2017
Industries: Financial Institutions, Financial Services
By: Jim Broucek