Finastra launches Small Business Data Collection solution to help financial institutions comply with DFA 1071
Module streamlines key data collection processes, enabling community banks and credit unions to easily prepare for the incoming regulation
Finastra, a global provider of financial software applications and marketplaces, today announced the launch of its Small Business Data Collection module, which enables banks to easily comply with the Equal Credit Opportunity Act (ECOA) small business data collection requirements, mandated by Section 1071 of the Dodd-Frank Act (DFA). The module, deployed as part of Finastra's LaserPro Compliance Reporter solution, streamlines data collection, validation, storage, report generation, and the annual filing process, saving financial institutions time and effort while ensuring accuracy and regulatory compliance.
"When new regulations are implemented, it is crucial that financial institutions plan ahead to ensure compliance," said Mitch Lucas, head of retail lending at Finastra. "As a financial software solutions provider, it is our goal to make these challenges as easy as possible to overcome, and we look forward to helping community banks and credit unions across the country simplify their data collection procedures so that they can focus on serving their customers and communities."
The Small Business Data Collection module features intuitive integrated workflows, simple checklists to assess whether loans fit the definition of covered transactions, and aids compliance teams with the firewall requirement, keeping applicants' sensitive information confidential from loan decision makers. The module prompts users to enter required data, such as the type and purpose of the credit, then facilitates the collection and secure storage of the business owner's sensitive demographic information, offering users multiple options for collection. Sensitive demographic information is returned to a secure location within the module, ensuring information is fully protected.
The data collection module is a cloud-native solution that integrates seamlessly with Finastra's suite of retail lending products, including LaserPro, CreditQuest, DecisionPro, and Originate. To learn more, download Finastra's fact sheet.