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.
Previous Article
PRA Letter Sets Out Findings on Reliability of Regulatory ReportingRelated Articles
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
