Posted September 13, 2016
On July 1, the FDIC released the Information Technology Risk Examination program (InTREx), which replaced its IT risk management program.
Since the release, several states have adopted InTREx, and more states are likely to follow suit. One reason: InTREx is considerably smaller than most IT risk questionnaires, and it has a quantifiable ability to determine scope and resources needed for exams. Many states have modified the program to fit their needs; they also have the option of building sections to further define each exam.
At least 90 days prior to an IT exam, the bank will receive an Information Technology Profile from FDIConnect. The profile made up of 26 questions, under the categories of: Core Processing (4); Network (6); Online Banking (4); Development and Programming (1); Software and Services (2); and Other (9).
For the examination, banks will be assessed using four core analysis modules: Audit; Management; Development and Acquisition; and Support and Delivery. Two workpapers contained within InTREX—one covering information security standards and one applicable to cybersecurity—are referenced in the core analysis modules.
Also built into the document are two expanded analysis sections—one specific to management, the other pertaining to support and delivery. Examiners may opt to complete either or both expanded sections if certain procedures are not specifically addressed in the core modules, or if an examiner determines the bank needs additional analysis.
All questions and referenced materials (modules, expanded sections, workpapers) are incorporated in the downloadable InTREx document, which is posted to the FDIC website via this link: https://www.fdic.gov/news/news/financial/2016/fil16043a.pdf
InTREx will markedly change how a bank prepares for and conducts IT examinations and audits. The new InTREx process can help banks wanting to adopt a more proactive stance to risk while devising their IT strategy. Overall, a bank that completes the initial questions and reviews the modules and workpapers will be better prepared for an exam by the FDIC or by a state that has adopted InTREx.
InTREx is also a publicly available, examiner-approved and organized way to internally audit a bank’s IT functions with a heavy emphasis on cybersecurity.
Posted July 21, 2016
Even as check volume continues to decrease, check fraud is growing. In fact, according to the 2013 Federal Reserve Payments Study, check fraud accounted for more than $1 billion. Detection and prevention are essential to curbing check fraud. Alert, well-trained employees and strong operational processes are your first and best line of defense.
On October 7, professional trainers with the WesPay Payments Association will conduct a 90-minute webinar – “How to Combat Check Fraud” – exclusively for Bankers’ Bank of the West customers. Participants will learn about the types of fraud taking place in the consumer and corporate check world, the preventive steps banks can take, and what kinds of tools can be used to fight check fraud. To request a course description and registration form, speak with any BBW operations specialist or email firstname.lastname@example.org.
Posted July 1, 2016
The next WesPay-led course in the 2016 special series for Bankers’ Bank of the West customers will thoroughly examine Same Day ACH. Subtopics include implementation guidance, staff and client education, potential agreement modifications, and operational obligations. This 90-minute session will be an essential foundation of knowledge for new hires and a valuable refresher for longtime employees. For information or to request a course list and registration form, speak with any BBW operations specialist or email email@example.com.
Posted April 28, 2016
Phase 1 implementation of the Same Day ACH Rules change will take place Sept. 23, 2016. From that point forward, any current day or stale day date in the effective entry date field of a credit entry will, in most cases, activate same-day processing.
A Same Day Entry Fee of 5.2 cents per such transaction will be charged to the originating depository financial institution and credited to the receiving depository financial institution. Given the potential impact of the new fee on banks with sizable sale-dated transaction volume, the Federal Reserve Bank suggests that all originating depository financial institutions assess how much stale-dated transaction volume they currently originate—and recommends that they work with their originators to remedy the situation before the Same Day Entry Fee goes into effect.
A March 14 Federal Reserve Financial Services memo, as well as other information on this topic, can be found at frbservices.org.
Registration and logistical details are available for the October 2016 two-day program known as Loan Officer Financial Management Training. The course has been sponsored annually since 2008 by Bankers’ Bank of the West to extend access to high-quality, job-specific education for community bankers in its service area.
The interactive, hands-on seminar focuses lenders on cultivating effective techniques, strategies and tools they can put to immediate use for the benefit of their bank as well as their commercial customers. The curriculum, with its emphasis on relationship-building, is geared toward experienced business loan officers with portfolio, underwriting, or calling responsibilities. Download the course brochure to learn more.