Finastra has introduced a small business data collection solution to support financial institutions to comply with the Dodd-Frank Act (DFA) 1071 in the US.
The latest module will allow banks to seamlessly adhere to the Equal Credit Opportunity Act (ECOA) small business data collection requirements, as stipulated by the DFA’s Section 1071, said the financial software applications and marketplaces provider.
Implemented as part of Finastra’s LaserPro Compliance Reporter solution, the module optimises collection of data, validation, storage, generation of report, and the yearly filing process.
It is expected to help financial organisations to save time and effort along with guaranteeing accuracy and regulatory compliance.
Finastra’s new offering is a cloud-native solution. It will easily integrate with the company’s portfolio of retail lending products, including CreditQuest, LaserPro, Originate, and DecisionPro.
Besides, the module features integrated workflows and simple checklists to examine if loans meet the criteria of covered transactions.
It is also anticipated to assist compliance teams in addressing the firewall requirement, safeguarding applicants’ sensitive information from loan decision-makers.
The module initiates user prompts for entering essential data like credit type and purpose.
It then facilitates the collection and secure storage of sensitive demographic information belonging to business owners, providing users with multiple collection options.
The sensitive data is securely relocated to a protected area within the module, ensuring comprehensive information security.
Finastra retail lending head Mitch Lucas said: “When new regulations are implemented, it is crucial that financial institutions plan ahead to ensure compliance.
“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.”