The Federal Deposit Insurance Corporation (FDIC) announced a new tech sprint designed to determine how well community banks, and the banking sector, can withstand a major operational disruption. This is intended to be the first of several tech sprints focused on fostering stronger operational resilience in banking sector. FDITECH, the FDIC tech lab, is challenging participants to identify solutions for institutions of all sizes to measure and test their operational resilience to any disruption. FDIC invites experts in operational resilience, financial institutions, non-profit organizations, consumer advocates, academic institutions, private-sector companies, and others to participate.
FDIC seeks solutions that improve sector-wide resilience. The focus of this initial resilience sprint is to identify existing and proposed measures, data, tools, or other capabilities, upon which a greater understanding of a bank’s true resilience to any hazard may be understood. There is no “one size fits all” approach to this problem; therefore, innovations developed for this tech sprint could range from developing findings and research-backed observations on how to more widely implement existing solutions, to designing a framework for helping to understand the problem better, or creating technical solutions that help identify opportunities for new interventions. Participants may focus on any aspect of the problem statement and, to develop that focus, FDIC encourages consideration of the following questions:
- Does the solution identify new/unique data or measures that provide deeper insights into the impact of a disruption on all aspects of the bank’s activities, including safety and soundness, core business services, market integrity, their customers, communications, and health and safety?
- Does the solution develop a consistent set of operational resilience measures and data that define normal and abnormal operating conditions?
- How might community banks, the largest financial institutions, and third-party service providers partner to collectively determine and test the solution, in a way that provides community banks with better capabilities to take more ownership of their resilience planning?
- What would a technical implementation of the measures and data look like and how might it be implemented sector-wide?
- Is the solution cost-effective and scalable to any size financial institution, including community banks; does it create value for other business applications; and can it be easily implemented and understood by non-technical staff?
FDITECH will open registration for this tech sprint in the coming weeks. Interested organizations will have two weeks to submit applications requesting participation. After a brief review of submissions, FDITECH will invite a select number of teams to develop proposed solutions to this challenge. Finally, FDITECH will host a "Demo Day," inviting teams to make short presentations to a panel of expert judges who will evaluate their solutions. All submissions will be publicized, and "winners" will be chosen in several categories.
Keywords: Americas, US, Banking, Tech Sprint, FDITech, Operational Resilience, Operational Risk, Community Banks, Regtech, Fintech, FDIC
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