Implementing a strategy, managing your risk, and staying compliant in the future will mean a fresh, new way to think about banking systems.
Because of their age and complexity, most of today's core systems require complex and costly procedures to gather compliance-related data from different locations.
Once this financial data is collected, special accountants must sort it, pricey lawyers must review it, and stern-faced consultants must recommend any action.
And by the time you do get it, you're only looking at a snapshot that's already completely outdated.
With mountains of regulation looming, the costs to pay these people are sure to double, triple, or worse. For some banks to hire even one additional employee threatens overall profitability.
The Dodd-Frank Wall Street Reform and Consumer Protection Act went into effect in full on January 10, 2014.
Some of the biggest impacts to banks include interchange fee fixing, tighter mortgage requirements for both borrowers and lenders, stringent new reporting and stricter capital requirements.
Due to interchange fee price-fixing, experts estimate that bank card revenues will drop by as much as 80%, a direct hit to the bottom line.
New mortgage "templates" will tighten debt-to-income ratios and down payment requirements for borrowers while new liquidity ratio requirements and predatory lending preventatives will challenge lenders.
The Dodd-Frank Wall Street Reform and Consumer Protection Act affects banks uniquely. Heavy and ongoing reporting requirements, some involving complex accounting and stricter capital requirements also come as a result of this legislation.
Basel III sets standards for banking in terms of capital requirements, leverage ratios, liquidity requirements and other measures to ensure a stable, flexible banking system.Then there is the Bank Secrecy Act (BSA), Fair and Accurate Credit Transactions Act (FACTA), FDICA Section 404, Sarbanes Oxley (SOX) assessments, and on and on, each requiring multiple, ongoing detailed assessments across the enterprise, including essentially every significant transaction, branch, vendor, system, and process of the bank. Do you know where you stand? It's enough to keep a banker up at night.
Spreadsheets and stand-alone point solutions are no longer sufficient to remain competitive. Enter AppPax Bankware, an easy-to-use, unified, expert system that you can let monitor and report on your bank's operations. See the status of your bank operations in easily consumable dashboards.Let AppPax handle the regulatory, technical, and organizational complexity so you can focus on building your bank.Once you use it you'll think, "This is how it should be."
Meanwhile, most legacy banking systems were originally deployed decades ago. Obviously, they weren't built for Internet and mobile demand, let alone new technologies like Google Glass and smartwatches. They weren't designed with API's for nimble system and device integration.
That's why complex workarounds and added procedures have added up to 40% in overhead to a bank's overall operating expenses just to support simple core banking activities...not to mention compliance monitoring and reporting requirements.
Because of the way these legacy systems were built, crucial compliancerelated data, got spread across multiple locations, both within the system and the organization.Key data went missing or got scattered like dust in the wind.
Accessing and securing this information becomes incredibly expensive and next to impossible to integrate and analyze, especially in realtime.
AppPax Bankware is the answer.