The goal of The Clearing House and Bank Policy Institute's Annual Conference is to deepen the understanding of the shifting regulatory environment and the rapidly changing payments landscape.
Sponsored by the Federal Reserve Bank of New York
Keynote Remarks: Ryan Crocker, Lifelong U.S. Diplomat, Diplomat in Residence at Princeton University
Keynote Remarks: Joseph Otting, Comptroller of the Currency, Office of the Comptroller of the Currency
Technology, changing consumer demands, regulation and non-bank competition are all forces changing the banking landscape, affecting how banks are structured, their technology investments, physical presence, ROE, and more. This panel convenes finance industry leaders with deep knowledge of the banking industry for an outside perspective on how banks are being re-shaped in response to these trends and what these changes mean for bank customers, markets, shareholders, and the financial system more generally. Panelists will also share their perspective and outlooks for the commercial banking landscape in the future.
The growth of online banking is having a significant impact on the availability and demand for various types of banking services. This panel will discuss the following: recent trends in the growth of mobile banking; the decline in the aggregate number of physical bank branches; accessibility of banking services in low-and-moderate income neighborhoods; trends in unbanked and underbanked households, and types of households that visit local bank branches.
Almost every aspect of our lives has moved into a 24/7 on-demand reality, fueled by data-driven experiences, and hyper-personalized interactions. Yet most financial institutions and other legacy industries aren’t able to keep up with this new demand. How do we transform the aspects of customer service, fraud/risk, technology and payments to help meet where our customers already are today and where they expect to be tomorrow?
This panel will discuss the ways to improve supervision of supervised entities by ensuring (i) standards against which entities will be evaluated are clear and communicated ex ante, (ii) establishing a dialogue between firm staff and agency staff to discuss any issues that arise during the supervisory process (informal appeal process prior to finalizing supervisory letters), and (iii) establish the responsibilities of entity staff in the supervisory process.
The digitization of our products and customer experiences, rapid adoption of cloud services, and the rising prominence of APIs have called into question many aspects of our legacy technology environments. According to a recent survey of banks, 57% of financial institutions either have a strategy in place or are putting a strategy in place for technology transformation, which is poised to change almost every aspect of banking.
Keynote Remarks: Jelena McWilliams, Chairman, Federal Deposit Insurance Corporation
The landscape for large commercial banks in the United States continues to evolve in response to the overall business environment, technological shifts, and changing customer demands, as well as other variables. This panel convenes four bank CEOs to provide perspective on the key issues for large commercial banks today, meeting consumer demands, the regional and national economic picture, technological advances and managing a bank in the digital age.
Key business services provided by financial services firms are critical to the efficient operation of markets, financial platforms and systems for customers, clients and counterparties at the national and global level. This panel will pull together senior regulators at the U.S. banking agencies, industry experts and security experts from the private sector to discuss this evolving area, including development of a common taxonomy, which activities to prioritize, defining impact tolerance, coordination between regulation and supervision and driving coordination with non-U.S. regulators.
With RTP now reaching over 50% of the consumer and business deposit accounts in the country, financial institutions are rolling out new products and services that help their customers take advantage of these new rails. Hear from customers that leverage these new products, what they like and what opportunities still exist.
This panel will explore issues of market fragmentation surrounding the current trend towards regulatory and supervisory ring-fencing, which may threaten the stability gains promised by the international framework that has emerged in the years following the Crisis.
Digitization of the customer experience has moved far beyond the consumer and into the business marketplace. Businesses are demanding digital first solutions that integrate with their BAU processes and help to streamline their workflow. Bank enabled API’s, RTP and Fintechs are all enabling these solutions for customers.
Keynote Remarks: Dr. Robert J. Shiller, Nobel Laureate in Economics, Distinguished Professor of Economics, Yale University; Author, Narrative Economics
Keynote Remarks: Justin Muzinich, Deputy Secretary of the Treasury, U.S. Department of the Treasury
The litigation and enforcement environment continues to evolve for banks, particularly in the context of government investigations and enforcement actions, which, year after year, become steadily more demanding. Senior representatives from banks, regulatory agencies, and the legal community will provide insights into the hallmarks of a good internal investigation, current enforcement priorities and initiatives and more. The panelists will also discuss issues relating to voluntary disclosure and cooperation, types of credit available for an effective compliance program, institutional versus individual accountability, interagency coordination of enforcement actions, and the appropriate role of compliance monitors.
This panel will explore the privacy landscape emerging in the US, how the financial sector is reacting to the new data protection regimes being established by the states, and the intersection of data privacy and data security. The panel will also consider issues that arise in the financial services industry around data sharing and customer authorizations to third parties to access data.
This panel will consider the use of new technologies, such as artificial intelligence and machine learning, that are being incorporated in the consumer credit underwriting and decisioning processes. The panel will examine the current ways in which a variety of financial institutions use AI to leverage alternative data to expand access to credit, and discuss the regulatory considerations that come into play, such as fair lending and UDAAP. Further, the panel will provide insights into how regulators consider these issues, including the interactions between the regulators and financial institutions regarding the use of these technologies.
TCH research shows that over half the banked population has used at least 1 fintech app where they can allow the app access their financial data. The panel will explore issues relating to access to and use of bank-held customer data when consumers choose to share their financial data with fintech applications. Topics to be addressed will include the increasingly complex relationships (structurally and technologically) between and among financial institutions, data access providers and fintech data users; consumer permissioning; and data safety and security issues. The panel will address key problems to be solved in these areas and various approaches different companies are taking to solve them.
This panel will discuss the evolution of U.S. sanctions programs and how they and technological developments are impacting bank compliance programs.
Many core payment systems in developed and developing countries have been improved opening the way for new innovations. Some of these improvements come from governments leading the charge but many others come from innovative companies. How will these innovations impact other countries and even the US?
Earlier this year, the Federal Reserve proposed new rules regarding the definition of “control” under the Bank Holding Company Act in view of the frequent uncertainty surrounding whether an investment in and/or by a banking organization would constitute “control” under the Federal Reserve’s current approach and the consequences of bank holding company status for controlling investors in banks. Representatives from the Federal Reserve and the banking industry will discuss how they expect the forthcoming shift in the framework will affect investments in and by banking institutions, including relating to bank investments in fintech companies and shareholder representation on bank boards. Panelists will also discuss the latest regulatory and market developments relating to bank m&a and agency application reviews.
Consumers are now well used to near frictionless commerce in certain situations, e.g., Amazon, Paypal, Uber, etc., but most e-commerce remains a bit more cumbersome. Current initiatives like W3C and Secure Remote Commerce (SRC), aim to strike a balance between speed, safety and consumer convenience. This group will discuss these initiatives and more in the quest for frictionless purchases.
The general counsels of the Federal Reserve, OCC, FDIC and CFPB will share thoughts on their current priorities and what’s ahead for 2020.