Finastra launches new module to aid compliance with equal credit opportunity act
Finastra, a leading global provider of financial software applications, has introduced a new Small Business Data Collection module designed to help banks adhere to the Equal Credit Opportunity Act (ECOA) small business data collection requirements, as outlined by Section 1071 of the Dodd-Frank Act (DFA). This innovative module is part of Finastra’s LaserPro Compliance Reporter solution and aims to streamline various compliance processes, including data collection, validation, storage, report generation, and the annual filing procedure.
The newly launched module by Finastra promises to simplify the compliance burden for community banks and credit unions by offering an efficient way to manage the complexities of new regulations under the ECOA. Mitch Lucas, the head of retail lending at Finastra, emphasized the importance of preparing for new regulations. “When new regulations are implemented, it is crucial that financial institutions plan ahead to ensure compliance,” Lucas stated. He also noted Finastra’s commitment to easing these challenges, expressing enthusiasm about helping financial institutions across the country streamline their data collection processes.
Finastra’s module includes several key features to enhance the efficiency and security of data handling. It provides intuitive integrated workflows and simple checklists to help determine if loans meet the definition of covered transactions. Additionally, it supports compliance teams by maintaining a firewall between the collection of applicants’ sensitive information and loan decision-makers. This ensures that sensitive demographic details are collected and stored securely, respecting the privacy and confidentiality of business owners.
The cloud-native solution is seamlessly integrated with Finastra’s suite of retail lending products, such as LaserPro, CreditQuest, DecisionPro, and Originate. This integration allows for a smoother operation and reinforces the security and accuracy of the data handling process.
The introduction of the Small Business Data Collection module by Finastra is a significant advancement in the financial technology sector. It not only underscores Finastra’s role in driving innovation in financial services software but also highlights the company’s proactive approach in assisting financial institutions to manage regulatory challenges effectively. This tool is likely to become an essential asset for banks looking to ensure compliance with the ECOA, enhancing their capability to serve small businesses efficiently and securely.