The Conference of State Bank Supervisors announced the selection of five technology companies to develop prototypes for modernizing bank financial data reporting.
The companies Lumio, HarmonyTech Inc., Regnology, ICF, and Curinos, would be charged with developing and prototyping their own concepts for making reporting less burdensome, more granular and more timely than the current quarterly submission process, officials said.
“Technology can help fundamentally change the way states examine banks and identify risks in the financial system,” said CSBS President and CEO Brandon Milhorn. “By testing new tools in real-world environments with examiners and banks, we can help produce capabilities that increase the effectiveness of supervision and reduce compliance costs.”
CSBS said the companies were selected from a pool of 19 competitors that submitted concept papers for the CSBS Bank Financial Data Innovation Challenge. After demonstrating their prototype to CSBS and a panel of state supervisors, the most compelling ideas will most to the next phase, a pilot program with at least one state financial regulatory agency.
The move is part of CSBS’s Catalyst Initiative, an effort to accelerate innovation through partnering with technology firms to address challenges facing state supervisors.
CSBS is a group of financial regulators from all 50 states, American Samoa, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands. State regulators oversee nearly three-quarters of all U.S. banks and some non-depository financial services. CSBS, on behalf of state regulators, also operates the Nationwide Multistate Licensing System to license and register non-depository financial service providers in the mortgage, money services businesses, consumer finance, and debt industries.