Hoosier Banker 45 bankers identified upcoming changes to Regulation CC (3.4/5) and the Current Expected Credit Loss standard (3.1/5). • Marijuana Banking: Although a growing number of banks view marijuana-related businesses as a potential new target industry, as a regulatory issue, it was not ranked as a priority. From compliance readiness to extending their digital reach, bankers are set to hit the ground running in 2020. Is your institution set to keep pace? HB Note: Download the full report at: go.csiweb.com/BankingPriorities20.html ond-least important, only ahead of social media outreach. Digital transformation, however, is incomplete without digital lending. Top Cyber Threats in Banking The survey delved deep into cybersecurity threats to gauge bankers’ understanding of this continuously evolving risk, asking: What is the greatest cybersecurity threat to your bank in 2020? • Social Engineering: This was the clear winner, with 41% of bankers ranking it highest. This tracks with the enduring popularity of social engineering with hackers, for the ease with which it consistently preys on human emotion to gain access to financial systems and data. • Third-party Data Breaches and Ransomware: At 21% and 20%, respectively, these threats followed social engineering. Combat these issues by conducting sound due diligence on vendors’ cybersecurity readiness and frequently back up your data. Despite acknowledging the severity of these threats, bankers seem ready for them, rating themselves 3.7/5 in cybersecurity readiness. While it’s encouraging that institutions feel confident about their cybersecurity readiness, at the same time it’s concerning. Experts warn that, as quickly as institutions get a grip on the latest hacking techniques and install preventative measures, cyber criminals adjust and adapt. 2020 Regulatory Focus In order to gain an understanding of how bankers would prioritize their compliance strategies for 2020, the survey asked: Which upcoming regulatory issues were most important to financial institutions on a scale from 1 to 5, with 5 being the most important? • Data Privacy: An average rating of 3.9/5 reveals industry anxiety about General Data Protection Regulation and California Consumer Privacy Act compliance, as well as concern that more state-enacted privacy laws – each with their own nuances – is looming. Keep in mind that digital-only strategies will likely expand customer bases into even more jurisdictions that may have distinct privacy laws. • BSA/AML and Beneficial Ownership/ Customer Due Diligence Rule: Bank executives think BSA/AML modernization (3.5) is a vital issue in 2020, as is the corresponding Beneficial Ownership/ CDD Rule (3.3/5). But there’s good news. The Corporate Transparency Act of 2019 would transfer some of the burden off of banks, as it “requires certain new and existing small corporations and limited liability companies to disclose information about their beneficial owners.” • Reg CC and CECL: Rounding out the top five most important regulatory issues, Managing the web of complex issues and regulatory constraints that surround banking today has never been more challenging. So the deep expertise of our banking team has never been more vital. Make life easier. Call us today. New Albany 812.945.2311 Louisville 502.423.0311 monroeshine.com CERTIFIED PUBLIC ACCOUNTANTS Audit & Assurance BSA & ACH Compliance Outsourced Internal Audit SEC & SOX Compliance Loan Review IT Risk Management Consulting Services Merger & Acquisition IN MEMORY OF David D. Baer, 86, retired president and chairman of Monroe County State Bank, Bloomington, died Feb. 25. He was 1993-94 chairman of the Indiana Bankers Association and a member of the IBA 40 Year Club. Baer began his career at Northern Trust, Chicago, and retired from banking in 2001. His community service included the Bloomington Chamber of Commerce and the Bloomington Hospital board. Baer was a veteran of the U.S. Navy, a graduate of the University of Iowa and the Graduate School of Banking at the University of Wisconsin, and a Sagamore of the Wabash. HB
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