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.
- 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
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).