Holiday Greeting from the SDBA + Holiday Hours

REGISTER TODAY: Virtual Understanding Bank Performance | Jan. 10 to Feb. 1

How familiar are you with how your bank actually earns a profit? Whether you are new to banking or have been in the industry for decades, Duncan Taylor, SVP/Chief Operating Officer, Washington Bankers Association, will teach participants how to assess and analyze you 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.

The Understanding Bank Performance course is a two-day, four-week course that will meet on Wednesdays and Thursdays for an hour beginning Wednesday, January 10 and concluding on Thursday, February 1. WBA’s virtual training mimics their highly-sought after in-person classes, focusing on providing students with the information, access to instructors and networking with peers to help prepare them for new responsibilities within the bank. Each program is carefully crafted to ensure students have personal interaction with our expert instructors and includes homework designed to help them fully understand class materials.

Click here to review the full curriculum and register with the WBA. As always, if you have questions, don't hesitate to reach out at [email protected] or 605.224.1653. 

REGISTER TODAY: 2024 Midwest Economic Forecast Forum - Virtual| Thursday, January 11

Don't miss this unique economic forecast for 2024!

Presented by the Wisconsin Bankers Association, in partnership with the Illinois Bankers Association, Michigan Bankers Association, Minnesota Bankers Association, and the Wisconsin Bankers Foundation. Prepare for 2024 by joining an economic discussion with Federal Reserve Bank of Minneapolis First Vice President Ron Feldman. Time will be allowed for open Q&A during this virtual event. Bankers and community leaders are encouraged to invite their business clients to virtually share these economic insights. Individuals or group registration rates are available.

Individual and group rates available. Click here to learn more and register.

About the Speaker: Ron Feldman is first vice president and chief operating officer at the Federal Reserve Bank of Minneapolis, where he leads Bank operations, including finance and budgeting, strategic planning, workforce and talent development, and performance against strategic objectives.

Feldman is also a primary adviser on monetary policy, playing a leadership role in preparing for Federal Open Market Committee meetings and in the development and communication of positions on monetary policy.

An expert on financial institutions and related government policies, Feldman has authored more than 50 articles on topics related to banking, finance, and monetary policy. He is one of the foremost authorities on the too-big-to-fail problem, co-authoring Too Big to Fail: The Hazards of Bank Bailouts, published by the Brookings Institution (2004).

Since joining the Bank in 1995, Feldman has served as a senior officer for Supervision, Regulation, and Credit and has run the Financial Services Support Office, which assists in the oversight of the Federal Reserve’s financial services.

He has a B.A. with distinction from the University of Wisconsin and an M.P.A. from the Maxwell School, Syracuse University, where he was a university fellow. He is a fellow of the National Academy of Public Administration.

Feldman is married and the father of three children. He is an active community member, serving on the boards of Second Harvest Heartland and Beth El Synagogue. He is on the Board of Visitors for the University of Wisconsin-Madison History Department.

The ABA Banking Journal's top hits of 2023 

From the SVB meltdown to interest rate volatility to Section 1071 litigation, your ABA Banking Journal editorial team has had an incredibly busy year keeping tabs on banking issues. Our team published 1,143 short Newsbytes stories, as well as numerous web and print features, to keep the industry informed. Over the same periods in 2022 and 2023, pageviews on the site were up 48.5% as readers turned to the Banking Journal.

Linked below are a few of the top most-read feature items (not including our short news coverage) published on the Banking Journal website this year. Thank you for reading in 2023 — and feel free to let us know how we can better serve you in 2024 by emailing [email protected]. We wish you a happy new year!

1. Compliance for 2023: What Does the Future Hold? In this ABA Risk and Compliance cover story, compliance expert Carl Pry, CRCM, outlined what to expect in the year ahead, from rulemakings like Section 1071 to broader initiatives like the CFPB’s “junk fees” campaign. It was our most-read feature of the year.

2. Back With a Vengeance: The Challenges of Check Fraud. As old-fashioned check fraud — enabled by new tech tools — continued to soar in 2023, Scott Jones of Adams and Reese outlined the rules around returns. (ABA also launched a free Check Fraud Claims Directory to help banks manage this behind-the-scenes process.)

3. Understanding (and Using) ChatGPT in Banking. In just a couple months this year, ChatGPT went from zero to hundreds of millions of users. ABA VP Ryan Jackson explored the implications of this surge in generative AI for bankers.

4. Podcast: A Deep Dive into the Section 1071 Final Rule. This podcast episode with ABA VP Kitty Ryan, a subject-matter expert on Section 1071, helped banks navigate the early stages of compliance and implementation preparation.

Click here to view and read the full list.

The Biggest Banking And Financial Services Trends For 2024 

by Bernard Marr on forbes.com

2024 promises to be a landmark year in banking and finance, marked by significant changes and transformations. The influence of AI will be pivotal, permeating every aspect of the sector—from revolutionizing customer service to reshaping financial management tools and streamlining back-office operations. This article offers an insightful overview of the key trends poised to drive these shifts over the coming year and beyond. These advancements, when effectively harnessed, have the potential to deliver more efficient, innovative, and cost-effective solutions in banking, investment, and insurance. However, they also present challenges that must be addressed to ensure these changes are implemented safely and ethically.

Generative AI In Fintech
Fintech generally refers to technology that gives consumers more power over how they manage, spend and invest their money. The most visible application of generative AI will be chatbots, with customers increasingly communicating with banking apps and online money services in natural language. Bank of America, Wells Fargo, BlackRock and Citigroup are among the major financial services players that have already launched or announced initiatives around generative AI. Expect to see innovations such as personalized financial planning and bespoke investment strategies based on customer profiles and behavioral data, all thanks to generative models like those powering ChatGPT.

Sustainable Finance
Moreso than ever before, we expect the institutions we do business with to prioritize sustainability and ESG factors in their decision-making. In the financial services sector, this means supporting investment in green initiatives such as renewable energy, recycling and carbon footprint reduction. Sustainable financial products are emerging, allowing customers to ensure their money isn't being used to cause harm to the environment or society while it is gathering interest in a bank vault.

Digital And Crypto Currencies
Digital currencies and cryptocurrencies are firmly back on the radar of financial services in 2024. Over 130 countries are reported to be investigating the use or adoption of central bank digital currencies (CBDCs), while Bitcoin’s recovery from its 2021 crash is attracting renewed interest from innovators and investors. Of course, outside of CBDCs, the crypto-space is still a wild west, so we can also expect further movement towards governance and regulation of those who do business there.

Customer Experience
In 2024, customer experience (CX) will be driven by the emergence of technology that enables every touchpoint of the customer journey to be analyzed to reduce friction and improve satisfaction. On top of that, new and immersive technologies like VR are starting to provide new, more engaging ways for us to interact and engage. With CX increasingly playing a major role in buying decisions, there’s clearly a direct connection between customer loyalty and business success, and more financial service businesses will prioritize leveraging this in 2024.

AI-Powered Insurance
Thanks to AI and its ability to spot patterns in data, we will see more insurers offering personalized products based on an assessment of an individual's risk. In theory, a more accurate risk assessment will lead to fairer insurance and lower costs. However, the industry will face challenges around privacy and data protection, as well as the risks of AI bias.

Open Banking
Open Banking is based on the principle of allowing us to take control of our financial data and how it’s used. It makes it possible to securely share information through APIs with other applications, services or tools that can provide us with useful services. In 2024, it will be a key trend as we become more aware of the importance of understanding who has our data and what they’re doing with it, as it also encourages service providers to engage in competitive innovation.

Cyber-Security And Fraud Detection
The escalating frequency and complexity of cyber threats and the ongoing AI arms race between cyber criminals and organizations means cybersecurity will continue to be a key trend. Countering these threats requires strategy and ongoing investment in tools, infrastructure, and skills. This is why Gartner forecasts that worldwide spending on security and risk management will reach $215 billion in 2024 – an increase of 14.3 percent in 2023.

Process Automation
Automating manual and repetitive elements of back-office processes will continue to drive efficiency and transformation in 2024. Tasks such as onboarding new customers, processing routine transactions, document verification, KYC checks and compliance will increasingly be managed by AI.

Blockchain Banking
We haven't heard too much about blockchain over the last year, as we've all had our heads turned by generative AI. However, distributed ledger technology is becoming increasingly commonplace in financial services. Researchers predict that spending will hit $19 billion in 2024, up from $4.5 billion in 2020. Aside from cryptocurrencies and digital currencies (covered above), we are likely to see more use cases for blockchain around creating smart contracts, establishing trust, streamlining payments, and authenticating transactions.

Regtech
Regtech refers to the integration of technology into tools designed to help banks and insurers deal with compliance and regulation. It includes using tools like AI, blockchain or cloud computing to conduct compliance tasks. It will become more prominent in 2024 due to the growing complexity and volume of regulatory requirements in financial services, particularly regulations involving personal data and privacy.

These emerging trends in banking and financial services not only promise a transformative journey but also highlight the critical balance between innovation and responsibility, setting the stage for a future where finance is not only more efficient and customer-centric but also more ethical and inclusive.

Click here for the original article.

CISA Reports

Jim Edman's CISA News looked a little different this week, as instead he sent over some of 2023's most helpful and informative docs, including technical briefings, reports, planning and tool documents below. 

Technical tools
Phishing Guidance: Stopping the Attack Cycle at Phase One
As excellent description, education and set of recommendations for protecting clients from the scourge of the email world.

Planning
Connected Communities
A couple infographics defining cybersecurity questions and considerations to consider for technology procurement. Separate documents for internal and vendor consideration.

Annual Reports
Homeland Threat Assessment
The Department of Homeland Security (DHS) Intelligence Enterprise Homeland Threat Assessment reflects insights from across the Department, the Intelligence Community, and other critical homeland security stakeholders.

Nation State Cyber Threat Overviews and Advisories
Russia
Russia will remain a top cyber threat as it refines and employs its espionage, influence, and attack capabilities and that, “…Russia is particularly focused on improving its ability to target critical infrastructure, including underwater cables and industrial control systems, in the United States as well as in allied and partner countries, because compromising such infrastructure improves and demonstrates its ability to damage infrastructure during a crisis.”

Winter Weather Tips from OSHA

QUESTION OF THE WEEK

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