SDBA to Hold Ag Credit Conference July 19-20

The South Dakota Bankers Association will present the 2023 Agricultural Credit Conference on July 19-20 in Pierre, S.D. This conference focuses on the unique needs of ag bankers and the desire for quality information and training to better serve their customers. Attendees will benefit from a day and a half of presentations from nationally recognized speakers, network with more than 125 banking peers and meet several exhibitors who offer products and services geared toward ag banking. New or experienced ag lenders, as well as CEOs, will all benefit from this conference.

For more information or to register, click here.

SDBA and WBA Offering Course: Virtual Understanding Bank Performance

If there's one thing we've seen clearly in the fallout from Silicon Valley Bank and Signature Bank, it's that today's bankers need to have a deep understanding of how bank performance actually works. Washington Bankers Association’s Understanding Bank Performance curriculum, taught by a graduate of Pacific Coast Banking School, is designed to provide just that, in an engaging, relevant, and comprehensive fashion. This opportunity is being offered virtually in July in conjunction with the SDBA.

Participants will learn how to assess and analyze a bank’s financial performance by working with data from real institutions. Using financial statements from one sample financial institution along with statements from their own banks, participants will become familiar with the ins and outs of balance sheets and income statements and learn how to apply key performance metrics to the data presented in these documents.

To view more details and to register, click here.

SDBA Fraud Peer Group Established

With all the recent fraudulent activity, the SDBA has been asked to establish a peer group of fraud-related personnel to share ideas, exchange thoughts, and network. There is no cost to participate in this group. This will initially be email-based, and, if the desire exists, potentially expand to Zoom/virtual or in-person, when allowed. If you would be interested in connecting, please email [email protected]. You will receive additional information once the group is established.

Sign up for SDBA Protective Alerts

As a service to our members, the SDBA electronically notifies employees of banks and branches in South Dakota about reported financial crimes.

Register to Receive Protective Alerts:
If you would like to register to receive electronic protective alerts, contact the SDBA to register for a profile.

If you are already a registered online user with the SDBA, you can log in and edit your profile to receive protective alerts.

Post a Protective Alert:

If you feel that your bank has been the subject of an attempted scam, please contact Haley Juhnke or Natalie Likness and we will notify SDBA members in order to minimize their losses. Please include all pertinent information and also list a contact person and phone number or email address.

If you have any questions about registering to receive or posting a protective alert, contact Haley or Natalie at [email protected] or call 605.224.1653.

CFPB Releases FAQ on Section 1071 Rule Compliance

The CFPB has published on its website a list of frequently asked questions about compliance with its recently finalized Section 1071 small business lending rule. The document covers topics such as which institutions are covered by the rule and what transactions they must count when determining whether they satisfy the origination threshold.

To view the FAQs, visit: Small business lending rule FAQs | Consumer Financial Protection Bureau (consumerfinance.gov)

CFPB Monitoring Developments in Fair Lending Technology

The CFPB has expanded its expertise in data science and analytics to identify fair lending violations as technologies such as artificial intelligence are more widely used in financial products, the agency said last week in its annual fair lending report to Congress. The agency said that in 2022, much of its fair lending supervision efforts focused on mortgage origination and pricing, small business and agricultural lending, and policies and procedures regarding geographic and other exclusions in underwriting. But the CFPB also noted that it has bolstered staffing resources as advanced algorithmic technologies such as AI are increasingly used throughout the entire life cycle of financial services products.
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“The CFPB is keenly focused on the risks that these technologies present to individual consumers, small businesses, communities and the market as a whole,” the agency said. “Big tech platforms, with their vast consumer surveillance and data harvesting infrastructure, have the potential to undermine fairness and competition.… Indeed, vast troves of sensitive data available about consumers that institutions using more traditional methods would never have used in a credit decisioning context are now fueling highly complex, black box algorithms.”
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The CFPB pointed to a circular it published last year stating that creditors must follow the law and provide statements of specific reasons to applicants against whom adverse action is taken, regardless of the technology they use. The agency also said that digital marketers acting as service providers can be held liable by it or law enforcement for committing unfair, deceptive or abusive acts or practices as well as other consumer financial protection violations.

To read more, visit: cfpb_fair-lending-report_2023-06.pdf

CISA News: Secure Cloud Business Applications (SCuBA) Project

The Cybersecurity and Infrastructure Security Agency (CISA) released the first series of final security guidance resources under its Secure Cloud Business Applications (SCuBA) project last week. Find the article here.

QUESTION OF THE WEEK

Q: On Regulation E error investigations, does a customer have to be given provisional credit if the investigation is conducted within the first day of the dispute and proven the customer is liable for the purchases?

A: You're required to provide provisional credit if an investigation under Regulation E 1005.11 extends beyond ten days. https://www.ecfr.gov/current/title-12/chapter-X/part-1005#p-1005.11(c)(2) So, if you're resolving your investigation and issuing findings before that deadline then there is no need for provisional credit under the Regulation.

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