Banking on Compliance: Your Defense Against Consent Orders

Stephen Coburn, CEO Avalo Labs

Dec 16, 2024

The Stakes Have Never Been Higher

In today's banking environment, few words trigger more concern among executives than "consent order." These regulatory actions carry devastating consequences: instant stock value impacts, severe reputational damage, and remediation costs that often dwarf the initial penalties. For many compliance officers and banking executives, a consent order can be career-altering. The impact extends far beyond the institutions directly affected. Each consent order sends ripples through the industry, particularly in emerging areas like fintech partnerships and banking-as-a-service relationships, where regulatory scrutiny continues to intensify.

To help you evaluate your institution's vulnerability to regulatory action, we've created a comprehensive checklist covering eleven critical compliance areas. Take a moment to assess your readiness.

Understanding Your Risk Exposure

How did your bank score? If you found yourself marking too many items as "not started" or "in progress," you're not alone. Many banks discover concerning gaps when they conduct this assessment. Even a few incomplete items can expose your institution to regulatory scrutiny and potential consent orders.

Picture your compliance team today: They're drowning in manual processes, piecing together reports from disconnected systems. Your anti-money laundering team struggles with fragmented monitoring tools, creating dangerous blind spots. Risk officers lie awake wondering what threats they might have missed in fintech partnership monitoring. Customer due diligence teams battle with scattered data across multiple platforms, making it impossible to maintain complete risk profiles. Meanwhile, your directors wait days, sometimes weeks, for crucial compliance insights that should be available promptly.

These aren't just daily frustrations – they're vulnerabilities that could expose your institution to regulatory scrutiny.

Transforming Compliance from a Burden into a Competitive Edge

Now imagine a different scenario: Your compliance team working from a single, integrated platform. Advanced transaction monitoring that catches suspicious activity quickly. Automated risk scoring that helps your team make faster, more confident decisions. Complete customer profiles available at a glance. And directors accessing compliance insights the moment they need them.

This transformation is possible through cutting-edge Know Your Client's Customer (KYCC) technology and our Risk-Based Approach to compliance management. These solutions integrate seamlessly through robust APIs, automating monitoring and reporting while adapting swiftly to new regulatory requirements.

The Avalo Difference

Consider one regional bank's journey: Their compliance team once spent long days manually gathering data, leaving little time for strategic analysis. Today, that same team operates differently. Automated reporting has freed them to focus on what matters most: strategic risk management and proactive compliance monitoring. Their fintech partnerships, once a source of regulatory concern, now operate with confidence through automated monitoring and systematic alerts. Management and Board reports that once consumed days of manual effort are now generated with precision at the touch of a button, supported by a fully transparent and auditable process.

That's the Avalo difference – turning compliance from a burden into a competitive edge.

Act Now!

Don't wait for regulatory scrutiny to expose gaps in your compliance program. Schedule a consultation with our experts to review your checklist results, identify vulnerabilities, and develop your transformation roadmap.