In an age where financial technology is rapidly evolving, compliance can be both cumbersome and complex for banks and lending institutions. Recognizing the challenges that these institutions face, Finastra has stepped forward with an innovative solution — a Small Business Data Collection Module designed to tackle the intricacies of adhering to the Equal Credit Opportunity Act, especially under Section 1071 of the Dodd-Frank Act. By incorporating this new module into their LaserPro Compliance Reporter software, Finastra is alleviating the stress associated with regulatory compliance. The tool is built to simplify several processes, including data collection, validation, and storage.
Moreover, it makes reporting and the annual filing process more efficient. Mitch Lucas, the head of retail lending at Finastra, underscored the need for financial institutions to be well-equipped in anticipation of upcoming regulations. By providing this module, Finastra vows to ease the path to compliance for all clients.
Key Features of the Compliance Module
The module introduced by Finastra isn’t just a standalone tool; it is deeply integrated with their existing suite of software to ensure a seamless user experience. The new Small Business Data Collection Module is embedded with features such as integrated workflows that guide bankers through each step of the compliance process. Additionally, it supplies a checklist that aids in identifying if transactions fall under the regulation, plus, it comes equipped with firewall tools to safeguard the confidentiality of applicant data during the loan decision process.
This initiative is in direct response to institutions needing to accurately capture the demographic details related to small business loan applicants. The automated prompts and storage solutions included within the module eliminate the chances of human error and ensure that all necessary data is correctly captured and maintained for regulatory purposes. This systematization is a testament to Finastra’s commitment to providing robust, error-minimizing financial technology solutions.
Cloud-Native Integration and Its Benefits
The benefits of Finastra’s Small Business Data Collection Module are further amplified by its cloud-native capabilities. By being fully compatible with Finastra’s suite of retail lending products, which includes LaserPro, CreditQuest, DecisionPro, and Originate, the module provides a unified approach to small business lending challenges. Its cloud-based nature ensures that the module can effectively operate in tandem with these products, promoting an efficient and collaborative environment for data collection and analysis.
This reflects Finastra’s foresight in offering wide-ranging solutions that are not only diverse in their capabilities but also progressive in terms of meeting the current and future needs of the regulatory landscape. All in all, the module works behind the scenes to streamline compliance for its users, allowing financial institutions to remain focused on their core business objectives without being bogged down by the complexities of regulatory compliance.
