FDIC Selects Four Vendors for Next Phase of Rapid Prototyping Pilot
The Federal Deposit Insurance Corporation (FDIC) has chosen four companies—Novantas Inc, Palantir Technologies Inc, PeerIQ, and S&P Global Market Intelligence LLC—to propose a pilot consisting of testing new reporting and analytical tools with a small group of FDIC-supervised institutions on a voluntary basis. This is the next phase of an ongoing Rapid Phased Prototyping Competition. The chosen vendors will propose a “proof of concept” for their solutions, which will be assessed for compliance with all legal, supervisory, and regulatory requirements as well as for security, scalability, operability, and marketability.
The Rapid Phased Prototyping Competition is designed to accelerate the adoption of modern technological tools to help financial institutions draw inferences from their data and to improve structure, portability and processing of data that may support more efficient operations and reporting. The four chosen companies submitted the following proposals:
- Novantas’ concept supports FDIC by leveraging its Comparative Deposit Analytics product to modernize regulatory deposit data submission and liquidity risk analytics. Fueled by artificial intelligence, the proposed solution aggregates anonymized, account-level data to produce advanced behavioral reporting on a frequent, standardized basis. These innovations will improve the effectiveness of FDIC supervision and Call Reports as well as provide banks with actionable data for funding management.
- Palantir Technologies’ concept supports FDIC by offering Palantir Foundry—a commercial Platform-as-a-Service (PaaS) that can be configured as a shared data ecosystem by means of extensible data, logic, and application capabilities housed within a single secure platform. With Foundry, FDIC can establish a banking industry ecosystem that can accommodate the data reporting and sharing needs of FDIC and its constituent banks while adapting to the changing realities of the organization, industry, and economy.
- PeerIQ’s concept supports FDIC by developing a powerful insight-oriented solution to transform how the FDIC assesses banking risk. The platform ingests daily loan-level data and leverages machine-learning technology to extract, verify, and contextualize complex unstructured documents to provide a live detailed view of a bank’s data. A rich visual analytics dashboard proactively alerts of high-risk trends and provides auto-generated narratives, highlighting key takeaways to facilitate the examination review process.
- S&P Global’s concept supports FDIC by leveraging their community bank-focused business intelligence software, combined with artificial intelligence, automation, and a “Privacy by Design” approach to privacy and data security, for an early warning system that benefits the FDIC and the U.S. banks. Integrating seamlessly with cores and general ledgers, the prototype will demonstrate how a bank’s data is standardized into key credit and liquidity metrics. Coupled with S&P’s leading credit tools and analytics, the prototype will provide both banks and FDIC with timely, essential intelligence on emerging risks in the U.S. banking system.
In addition, FDIC extended the registration period to participate in a tech sprint designed to identify and develop measures, data, and other capabilities to understand how resilient banks are to major disruptions. Interested organizations may submit applications requesting participation until September 19, 2021. The extended registration period will not affect the duration of the tech sprint. After a review of applications, the FDIC’s Tech Lab (FDITECH) will invite a select number of organizations and teams, from among private and public sector experts in operational resilience, financial institutions, non-profit organizations, academic institutions, and others, to participate. Selected teams will attend an initial meeting and then work independently on their proposed solutions for a period of approximately three weeks. FDITECH will host a “Demo Day,” inviting teams to make short presentations to a panel of expert judges who will evaluate their solutions. In a separate development, FDIC released an updated list of entities for which a Primary Purpose Exception Notice has been filed with the FDIC under the Brokered Deposits Rule, along with an updated document on questions and answers (Q&As) related to the Brokered Deposits Rule.
Related Links
- Press Release on Prototyping Competition
- More on Prototyping Competition
- Entities Submitting Notices for Primary Purpose Exception (PDF)
- Q&A on Brokered Deposits Rule (PDF)
- Brokered Deposits Overview
Keywords: Americas, US, Banking, Community Banks, Regtech, Fintech, Rapid Phased Prototyping, FDITech, Reporting, Operational Resilience, Brokered Deposits, Q&A, FDIC
Featured Experts
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Related Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
