Streamline Compliance and Prepare for Dodd-Frank 1071 with nCino's Small Business Banking Solution

On July 31, U.S. District Court Judge Randy Crane granted a preliminary injunction in favor of two trade groups and a private bank that filed a lawsuit against the CFPB to prevent the implementation of Dodd-Frank 1071. A federal judge agreed to halt the Consumer Financial Protection Bureau’s small-business data collection rule until after the Supreme Court decides next year on whether the bureau’s funding is constitutional. Then, on August 2, the Texas Bankers Association and the American Bankers Association jointly sent a letter to the CFPB, urging for a relief measure that would exempt all banks from adhering to the mentioned rule.

Regardless of your stance on Dodd-Frank 1071, we’ve got some good news: with nCino's Small Business Banking Solution, FIs can comply with confidence even as regulations evolve, while at the same time overcoming a multitude of other challenges, from outdated systems and manual processes to fragmented data storage.

What is Dodd-Frank 1071?

With the finalization of Section 1071 of the Dodd-Frank Act on March 30, financial institutions (FIs) are required to collect and submit credit application data for underserved businesses. This regulation aims to increase transparency and enforce fair lending practices but can pose significant operational challenges for FIs that aren’t prepared to meet the new requirements. As the deadline for data collection and reporting approaches, FIs need a reliable and adaptable solution.

Enter nCino’s Small Business Banking Solution, which collects, translates and exports data in a format according to the filing instructions provided by the Consumer Financial Protection Bureau, providing a comprehensive solution for FIs.

How nCino’s Small Business Banking Solution Addresses Dodd-Frank 1071

nCino’s September 2023 release integrates fields required for Dodd-Frank 1071 within the small business loan application. Thanks to the platform's flexible nature, these fields can be seamlessly integrated at any point within the workflow, ensuring a consistent experience for both frontline staff and small business applicants.

Compliance officers have access to information instantly via detailed dashboards and reporting. These tools are crucial for providing regulators and auditors with 1071 data—and they can be created and accessed at a moment's notice. Plus, nCino’s managed service offering with Informatica enables data collection, translation, and export into .csv format for use with third-party data validation and reporting tools.

Why Choose nCino?

When it comes to regulatory compliance, nCino is your trusted partner. Our platform fosters institutional transparency and enables institutions to manage critical regulatory concerns efficiently. By leveraging nCino, FIs can confidently handle sensitive information and meet regulatory requirements.

We also recognize the untapped market potential in serving historically marginalized groups. nCino's platform helps institutions identify and understand this potential, proactively addressing the challenges that Dodd-Frank 1071 aims to rectify.

With nCino, financial institutions can enjoy lower compliance costs and risks, decreased examination prep time, and optimized efficiency. Our solution minimizes operating expenses, provides comprehensive data protection, and ensures audit readiness. By offering a single source of truth, we aim to reduce fragmented systems and help institutions tap into previously underserved market segments.

Key Takeaways: Your Partner in Lending

In the evolving world of financial regulations, nCino is your steady partner. With built-in compliance considerations, we take care of the details, allowing FIs to focus on what truly matters: serving their customers.

By leveraging existing workflows and data fields within our platform, FIs can expect zero to minimal service disruption as they approach the first phase of the Dodd-Frank 1071 data capture. And with our shift to monthly releases, we guarantee real-time enhancements to our regulatory compliance functionality. Regardless of your FI’s respective compliance timeline, nCino is ready and waiting to help you take the first step on your Dodd-Frank 1071 journey.

To learn more, register for our upcoming webinar Navigating Dodd-Frank 1071: Turning Challenges into Opportunities for Financial Institutions, with Consumer Bankers Association, which will take place Thursday, September 14, 2023. Not a CBA member? Use the code NCINO914 to register for free. We hope to see you there!