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As another quarter comes to a close and a new one is upon us, Finosec remains committed to providing you with impactful industry updates and educational resources so you can leverage them to drive progress within your organization.

Below you’ll find our most engaging content from the quarter, including regulatory updates and company happenings.

Company Updates

Our team has been hard at work developing upgrades to our platform that will create a more intuitive and streamlined experience. Additional details will be sent out as upgrades are ready for release but you can look forward to improvements and enhancements in the vendor governance and UAR modules.

The team meets every Tuesday to discuss AI developments within the industry and how they’re using AI to create better customer experiences. From this meeting an exciting and unique project was presented. His name is Regi Ranger and we believe he’s going to be a game changer for your team. To learn more make sure you stay up to date with our latest blogs!

In early June, our team spent two days together imagining and brainstorming the future of Finosec. As a fully remote team, we value the opportunity to get everyone together in one place. Our team members had the opportunity to preview several new features on our product roadmap that we cannot wait to share.

Since our last meeting, we’ve grown 49% in the last year! Words cannot express what your trust in our team and platform means to us and your support as we continue to grow and expand.

Check Out Our Latest Blogs

Finosec in the News

• BAI Banking Strategies: Security: 8 steps for banks to simplify Identity and Access Management
• ABA Banking Journal: Preparing for the departure of an information security officer
• Independent Banker: Integrating Innovation

Regulatory Updates

In May, the OCC released two enforcement actions with The Lemont National Bank and Comerica Bank & Trust, National Association. Here’s what they had in common:

1. Strong Governance and Oversight

   • Both enforcement actions emphasize the need for strong governance structures, with clearly defined roles and responsibilities for the Board and senior management.
   • There is a requirement for the establishment of Compliance Committees to oversee the implementation of corrective actions and ensure ongoing compliance.

2. Strategic Planning and Risk Management

   • Each action mandates the creation and maintenance of comprehensive strategic plans, focusing on long-term goals, risk profiles, and financial performance.
   • Emphasis is placed on identifying and mitigating risks, including credit, liquidity, operational, and compliance risks.

3. Capital and Financial Management

   • Both banks are required to maintain adequate capital levels and have detailed capital planning processes.
   • Financial reporting and accountability are highlighted, with regular reviews and updates necessary to ensure the accuracy and integrity of financial data.

4. Internal Controls and Audit Functions

   • The enforcement actions call for robust internal control systems and independent internal audit functions to assess and ensure the effectiveness of internal controls.
   • Both banks must implement comprehensive internal audit programs to evaluate the adequacy of their controls and compliance with regulatory requirements.

5. Third-Party Risk Management

   • Effective third-party risk management programs are required to assess and manage the risks posed by third-party relationships.
   • Continuous monitoring and documentation of third-party activities are essential to ensure compliance and protect the bank’s interests.

1. Resource Constraints: Smaller institutions may lack the resources needed to implement comprehensive governance, strategic planning, and risk management programs.

2. Complex Regulatory Requirements: Keeping up with and implementing complex regulatory requirements can be challenging for smaller institutions.

3. Operational Efficiency: Maintaining robust internal controls, audit functions, and third-party risk management programs with limited staff and budget can be difficult.

On The Road

This spring was busy for the Finosec team! We attended quite a few conferences where we were able to connect with attendees to discuss information security, cybersecurity strategies, innovation in banking, and more.

Some highlights from the last few months include Finosec’s Beth Sumner facilitating the first session of a series of Information Security Officer Peer Groups in collaboration with the Community Bankers Association of Georgia where she discussed information security in community banking, best practices and resource sharing, preparing for future sessions, and more. Additionally, our Founder and CEO, Zach Duke, spoke at the Florida Bankers Association’s 2nd Annual Operations & Technology Forum about recent exam trends and best practices to ensure that your identity access and user review processes meet expectations.

Connect with us at the following upcoming events:

• Independent Bankers of South Carolina, July 25-July 27 - Hot Springs, VA
• Indiana Banker's Technology Conference, August 28-August 29 - Indianapolis, IN
• Data Center Inc. Conference, September 15-September 17 - Overland Park, KS
• Jack Henry Connect, October 7-October 10 - Phoenix, AZ

Finosec Forward

This quarter, we are thankful to have had the opportunity to support Love INC of Newaygo County, an organization dedicated to helping the homeless in their community on behalf of Lisa Rudd, and Hale County Animal Shelter, an animal shelter committed to advocacy efforts and adoption programs for animals in the community.