April 11, 2018

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Trump Touts Reg Relief Bill - S. 2155       

President Donald Trump reiterated his support for legislation to provide community bank regulatory relief. At a tax-reform event in West Virginia, Trump said final passage of the Senate-passed S. 2155 "should be done fairly quickly" to bolster community bank lending.

ICBA continues urging participation in its nationwide petition drive calling on the House to immediately pass substantial community bank regulatory relief. Following the Senate's strong bipartisan passage of S. 2155, ICBA wants to ensure momentum for relief is not derailed.

All community bankers, staff and bank directors are urged to join this important petition drive and enlist customers and community banking allies in the effort as well.

Sign the Petition  > 
Bill to Create Bipartisan Commission Structure for CFPB

In a joint comment letter to several House members, financial trade groups expressed support for H.R. 5266, a bill that would transition the governance structure of the Consumer Financial Protection Bureau from having a sole director to a five-person, bipartisan commission. The bipartisan bill was introduced by Reps. Dennis Ross (R-Fla.), Kyrsten Sinema (D-Ariz.), David Scott (D-Ga.) and Ann Wagner (R-Mo.).

"The current single director structure leads to uncertainty as we have witnessed in CFPB leadership from the Obama administration to the Trump administration. This uncertainty is not only borne by financial institutions providing significant lending services, but it negatively impacts America's consumers, small businesses and our local economies," the groups said. "A Senate-confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation and enforcement by encouraging input from all stakeholders."
The associations added that transitioning to a bipartisan commission structure has wide support, both from Congress and the public; similar bills have been passed multiple times on bipartisan votes by the House Financial Services Committee and the full House, and a recent Morning Consult poll noted that only 14 percent of the public favors maintaining the bureau's current leadership structure.

The Letter  > 
CFPB Asks Congress to Limit Its Authority
The Consumer Financial Protection Bureau called on Congress to make four changes to the Dodd-Frank Act to reform the bureau.

In its first semi-annual report under Acting Director Mick Mulvaney, the CFPB recommended that Congress:
  • fund the bureau through congressional appropriations,
  • require legislative approval of major rules,
  • ensure that the CFPB director answers to the president in exercising executive authority, and
  • create an independent inspector general at the bureau.
CFPB Report  > 
FinCEN Issues Customer Due Diligence FAQs

The Financial Crimes Enforcement Network (FinCEN) issued new fr equently  asked questions on the customer due diligence final rule published in May 2016.

The rule requires banks to implement a formal customer due diligence program and identify the beneficial owners of legal entity customers by May 11, 2018.

FinCEN may issue additional FAQs, guidance, or grant exceptive relief as appropriate. A covered financial institution with notice of or a reasonable suspicion that a customer is evading or attempting to evade beneficial ownership or other customer due diligence requirements should consider whether it should not open an account, close an account, or file a suspicious activity report, regardless of any interpretations below.

FinCEN Guidance  > 
Gallup recently conducted a poll on how Millennials think about banking. And while the results might not be terribly surprising -- Millennials rely on digital versus in-person experiences -- they provide more data for banks looking to alter their approach so as to reach what is now the largest living generation of consumers. Indeed, Gallup recommended specific actions banks can take to better reach and serve Millennials, which you can read from the links below.

Key stats from the poll:
  • Millennials are first-generation digital natives. In our recent banking study, Millennials were the most likely generation to use both online (92 percent) and mobile channels (79 percent) -- and they tend to use those channels more frequently than older generations. 
  • Only 66 percent of Millennials visited a brick-and-mortar branch within the past six months, compared to 81 percent of Baby Boomers and 80 percent of Traditionalists. 
  • Millennials have the lowest levels of customer engagement with their primary bank (30 percent are fully engaged) compared with Baby Boomers (40 percent) and Traditionalists (51 percent)
  • (While) Millennials were slightly more likely to say they had a problem...(they) were the least likely generation to report their problem to their bank. 

Then, the kicker: 

Millennial customers recently reported switching their primary bank at a rate that is 2.5 times more often than Baby Boomers and Traditionalists and 1.5 times more than Gen Xers.  

Providing financial services to Millennials requires a thorough understanding of their needs, preferred channels, and problem resolution. And the Gallup results and recommendations advance that cause.

Ways to better reach and serve Millennials  >    More Ways  > 
Technology and banking go hand-in-hand these days, and let's just be honest about it, we don't want to deal with the bits and bytes of technology, we just want it to work. Today though, banking executives need to know how to capitalize on technology, how to turn it into an asset, how to squeeze and wring every dollar and profit out of it to make your bank more successful. That's the reason for this email, because it is rare that a technology event comes around that isn't all geek speak, and is geared toward the executive that wants I.T. to just work, and to work for you to create better success in your bank.
That event is the JMARK Business Innovation Technology Summit, and there is no selling at this event, it is a purely educational event occurring on May 18th, in Springfield, MO. The summit includes 2 keynotes, 25 sessions, 200+ attendees, and so much more. Here are 5 things that every banker will get out of this event:
·     Learn how to perform strategic I.T. planning to use technology to create 
      efficiencies and profitability.

·    Enhance employee training while increasing adherence to best practices 
     that keep you compliant with regulations.

·    Learn what is needed to put into practice smart I.T. processes and 
     policies that improve the security of your financial data.

·    Learn the key steps to I.T. maturity and how to reach the next level, and
     beyond. (Organizations with high I.T. maturity are more profitable and
     spend less on technology.)

·    Learn how to turn I.T. into a profit center for your bank instead of simply a
     tool for getting work done.

Lastly, because we know your time is money, we have negotiated with JMARK to allow every ACB banker to attend the Summit for FREE. It will include breakfast, lunch, snacks, drinks, and a reception to celebrate JMARK's 30-year anniversary. This is JMARK's way of giving back to Arkansas' community bankers and other executives across the area that have given so much to them over the years.
Just go to https://www.bizinnovationtechsummit.com/ to register with the code of ACB