Another New Haven tech company to watch is Continuity Control, which expects to double its 25-person workforce this year, according to Andy Greenawalt, the company’s chief executive officer and founder.
A recent report from Continuity Control, a New Haven, Conn.-based provider of compliance management system, says that community banks grappled with the toughest regulatory year on record in 2013, with an average of 61 regulatory changes each quarter. "Many community financial institutions continue to rely on one or two individuals and antiquated processes to manage compliance," says Pam Perdue, Executive Vice President, Regulatory Insight, at Continuity Control and former Federal Examiner, said in the report. "It's become untenable for an institution to keep up with all of these changes using current methods. For many banks, they are increasingly discovering that updating their technology can solve the problem better, faster and cheaper."
More regulations, enforcement actions for community banks
Continuity Control, which compiles a banking compliance index, said a 22 percent increase in regulatory changes and a 5 percent increase in enforcement actions required the average community bank to hire the equivalent of more than two full-time compliance employees at a cost of $150,000 during the year.
In an environment characterized by a plethora of new laws and burgeoning enforcement actions, compliance officers today must operate as business catalysts, helping their credit unions grow within the rigors of a rapidly changing regulatory landscape, according to Andy Greenawalt, founder and CEO of Continuity Control, a New Haven, Conn.-based financial technology company.
In the last decade, virtually every aspect of banking has changed. Yet, one conversation – a very critical one – has yet to happen. The one about compliance management. As the regulatory burden has grown for community banks, the role of the compliance officer has been transformed.
Nearly a quarter of bankers surveyed (from banks with $1 billion to $20 billion in assets) expect to become sellers in 2014 as challenges and regulatory scrutiny rise. More than a third of executives said 5% to 10% of operating costs are tied to regulatory compliance; 37% said the figure ranges from 11% to 20%.
Besides spending dollars on compliance, executives are forced to devote time to this area, says Pam Perdue, chief compliance strategist at Continuity Control. Unfortunately, this could lead to regulation fatigue.
"Some banks are sort of becoming numb to the regulatory response," she says. "If you are in a boxing match, you can only get hit so many times until you don't feel it anymore."
The future of compliance automation is here, almost
The fact that most community banks have skated along with in-house systems and technology solutions that only address parts of the problem comes as no surprise, says Andy Greenawalt, founder and CEO of Continuity Control, which has launched an online compliance solution designed to address this problem. He compares the situation to a driver with snow or mud stuck in his or her wheels throwing off the tire’s balance; all seems well until the driver speeds up, and then the car begins to vibrate and seems on the verge of collapse.
“Bankers had a system that worked for a slowly changing environment that was lightly scrutinized,” he says. But with mounting regulations and rapid changes, he continues, “the system simply broke.” Although many compliance solutions address pieces of the regulatory puzzle, the real problem is that they don’t tackle the problem from a high enough altitude. What’s critical, says Greenawalt, is managing the entire regulatory lifecycle.
In an effort to get compliance under control, forward-thinking bankers are applying new strategies to ease their burdens. Many are implementing intelligent technology-based systems that improve how regulatory changes are interpreted and managed, that reduce resource requirements and that foster a culture of compliance across the organization.
“Banking has always been a regulated environment, but it’s kind of on steroids these days. I either had to increase my full-time employee base to keep up with and implement all the regulatory changes, or take a completely different approach, one where we could leverage technology and work with somebody that offered us a team of experts.” ~ Robert Hemsath, president and CEO of Security First Bank in California
How to Survive the Most Oppressive Regulatory Storm Yet
The cost burden for WIB member banks to handle just Q3’s additional regulatory changes was over $46K per institution, according to the Banking Compliance Index (BCI). The good news is there are changes community bankers can make to ensure their institution survives.
It’s time for an honest, constructive conversation about the state of regulatory compliance in community banking. For starters, the burden isn’t going away – it’s only getting heavier. According to the Q3 2013 Banking Compliance Index, 179 regulatory changes have been issued and 508 new enforcement actions have been opened year to date. To understand these changes, compliance officers must read well over 10,000 pages of text. The cost to be compliant with just these new changes is more than $120,000 per institution.
A look at some recent surveys and reports dealing with risk and compliance issues.
"The Banking Compliance Index data for the third quarter compiled by Continuity Control found no sign of regulatory relief for the remainder of the year, and a 31% increase in enforcement actions since the second quarter. The quarterly cost burden for an average institution to handle the quarter’s regulatory changes increased more than 65% to more than $43,000."
Enforcement Actions Rose 31% in Third Quarter, Study Says
Banks had to devote more money to compliance in the third quarter after regulators increased the rate of new enforcement actions.
"Community banks are facing increased regulatory demands, while at the same time, regulators are demonstrating a new focus on beefing up enforcement, creating one of toughest regulatory environments we've seen in 25 years," said Pam Perdue, Continuity Control's chief compliance strategist.
How Do You Measure the Enormity of Someone’s Burden?
Everyone is aware of the tremendous pressure community banks are under as a result of the Dodd-Frank Act, but until recently, it seems no one had a scale or process in which to actually measure the burden. After all, how do you quantify a burden — especially when there is more yet-to-be-official burden to come?
"“There is a huge amount of noise in the industry and the situation has been wildly overblown,” said Andy Greenawalt, CEO and co-founder of Continuity Control, a New Haven, Conn.-based compliance software provider. “A lot of credit unions believe they won’t be ready, but in reality they already are and just have to work through the details.”
Managing compliance is one of the biggest challenges facing financial institutions, according to Sam Whitehurst, president and CEO of $150 million Summit Credit Union in Greensboro, N.C., and a Continuity Control client. The software provider’s automated approach makes addressing the challenges on an almost daily basis relatively easy, he said."
How Bank of the Sierra Stays One Step Ahead of Compliance
Compliance has become overwhelmingly pervasive, impacting virtually every aspect of the business – from the teller line to the marketing strategy. Most banks struggle to easily understand which regulations impact their operations, identify which actions need to be taken by whom, and assess their overall compliance risk across the business.
Such was the case for Bank of the Sierra, a $1.4 billion dollar, 26-branch institution based out of Porterville, California. As the business has grown, so have the compliance risks. Like most of its peers in the industry, the bank has faced greater scrutiny from examiners over the last several years. In 2011, the institution took action.
3 Radical Compliance Management Changes You Can’t Afford to Ignore
If there’s one message financial institution executives can take away from the current regulatory environment, it’s that the storm is nowhere near over. More than 55 regulatory changes were issued in the second quarter of this year spanning over 2,300 pages and yielding 154 enforcement actions. For WIB member banks, the cost impact of Q2’s changes will cost an alarming $37.3 million, or an estimated $46,252 per institution. With compliance costs growing at a rate of 15 to 18 percent each year, it goes without saying that banks are feeling the brunt of an aggressive regulatory burden.
If every regulatory change requires human energy, that becomes a problem. Credit Unions should not address compliance on a 1:1 ratio. Using a shared compliance officer from their CU league, might change that ratio to 5:1. Using technology, might take it to 20:1.
Risk Management Must Be Priority For All Banks, Not Just The Biggest
Despite the financial and operational challenges of regulatory compliance, investments in modern risk management capabilities must be viewed as an opportunity — not a burden — for all banks, regardless of size.
The Banking Compliance Index (BCI), put out by Continuity Control, found the average financial institution must devote 2.3 full-time employee equivalents to manage their regulatory burden; that the quarterly cost for average financial institutions has increased more than 7%, to nearly $40,000 per quarter; and the time it takes to comply with all the rules and regulations has increased more than 50% in the past year.
The compliance burden has more than doubled in the last year, according to a New Haven, Connecticut company that tracks regulatory compliance for community banks. The Banking Compliance Index compiled by Continuity Control shows a 117 percent increase in reg burden during the past 12 months. The company said the average bank has needed to add 2.3 full-time equivalent employees to meet the additional compliance responsibility.
The Regulatory Burden Seriously Threatens Banks’ Survival
Some challenges can seem too overwhelming to even think about, much less actually solve. For many banks, regulatory compliance is this kind of problem – far too big and complicated to contain and subdue.Yet many compliance officers are doing just that. Instead of ignoring the monster, they’re grabbing regulatory compliance by the horns and wrestling it to the ground. Strategically. Efficiently. Successfully.
Reg Worries Divert Bank Execs from Growth, M&A Efforts
Organic growth, dealmaking and innovation are taking a backseat to compliance. The regulatory burden topped the concerns of bank executives in a recent bank survey.
"Bankers are walking on eggshells and the term most frequently used is fear," says Andy Greenawalt, the chief executive of Continuity Control. "There is a psychological paralysis that has crept into the mix."
Case Study: Bank of the Sierra Automates Compliance Tasks
With the ever-increasing regulatory burden, community banks struggle to keep up with Washington. Some have deployed software to streamline compliance – Bank of the Sierra, a $1.5 billion-asset bank based in Porterville, Calif., is one of them.
Cost Of Compliance With CFPB Rules Issued Q1 Alone: $27K Per CU
It is not your imagination; credit unions ARE spending more and more time dealing with new regulations. According to financial technology provider Continuity Control, there were 120 new enforcement actions in the first quarter alone. During a recent Regulatory Compliance Briefing for Financial Institutions webinar, Pam Perdue, chief compliance strategist, said if an average FI dealt only with the new regulations released in Q1, it would need 919 hours to address 5,001 pages. The cost, calculated at $30 per hour, equals $27,570.
It's Time to Change the Way We Manage Compliance Costs
How can we stop the bleeding? It’s a question banks have been asking themselves for years as the cost of regulatory compliance erodes margins, eats away at valuable resources and threatens the overall health of the community banking industry.
If community banks expect to conquer the massive complexities of today’s regulatory environment, while also tackling other market pressures facing their business, they must re-think the way they manage compliance. This includes developing a program that is built upon five key success factors: standardization, automation, change management, process visibility and cost control.
Regulatory Costs Keep Rising, Distracting Community Banks.
Regulatory change is taking increasingly bigger bites out of community banks' bottom lines. Banks are spending more time and money to follow new regulations. That is problematic, especially when it distracts bankers from other duties, industry observers say.
Price of Increased Regulatory Burden: Less Time for Customers
The Banking Compliance Index (BCI) found that smaller banks will spend $250 million and 8.3 million hours complying with regulations implemented in Q1 2013. The BCI shifts the dialogue from anecdotes to quantifiable data that "sends a more powerful message," says Pam Perdue, Continuity Control's chief compliance strategist. "We think it will be welcomed by all of the constituencies. Most importantly, legislatures and regulators will be aware of the impact."
Index Shows Heavy Regulatory Burden on Community Banks
With more than 800 regulatory changes enacted since 2008, community banks have had to devote more time, money and manpower to stay in compliance. The Banking Compliance Index introduced Wednesday by compliance platform provider Continuity Control uses public and proprietary data to track a bank’s regulatory compliance workload.
This week, compliance management platform Continuity Control and cbanc Network, a knowledge-collaboration community, announced a partnership.This partnership will make Continuity Control's RegAdvisor, a quarterly briefing, available through cbanc's WebEd program.
Managing compliance has become an overwhelming task because there is no standardized way to manage policies and procedures, so with every regulatory change the process starts all over again. When banks implement a standardized process for getting the work done, they have a sound system to address regulatory change.
Continuity Control Rolls Out Automated Compliance Software
Continuity Control, a New Haven, Conn.-based compliance company, has announced the availability of an automated compliance management system aimed at small and mid-sized credit unions and designed to offer continually updated information about evolving regulations from the NCUA.
Greensboro Postal CU Adds Continuity Control’s New Compliance Platform
GREENSBORO, N.C. – Greensboro Postal CU has implemented Continuity Control’s regulatory compliance management system to help it keep up with new NCUA rules and regulations. Tied directly to NCUA’s Automated Integrated Regulatory Examination Software, Continuity Control said its new platform automates the notification of regulatory changes, interprets the meaning of the compliance requirements and translates requirements into systematic deliverables for small- to mid-size credit unions.
Regulatory Compliance and Community Banking Growth – Not an Oxymoron
Community banks are finding it hard to prosper in this regulatory environment. In a recent survey, a staggering 47 percent of community banking executives cited regulations as their greatest impediment to growth for the coming year. But this doesn’t have to be the case. There are 5 dynamics causing over-investment in compliance. Once solved, growth is possible even in the face of changes brought on by the regulatory environment.
Illinois Banking Group Adds Continuity Control to Preferred Provider List
Continuity Control announced Friday that it has been endorsed as a preferred provider by the Community BancService Corporation (CBSC), a subsidiary of the Community Bankers Association of Illinois that recommends products and services to banks. Continuity Control sells compliance software to community financial institutions.
Challenges drive innovations that become part of our day-to-day lives. From light bulbs to the Internet to GPS, innovation is everywhere. And the next stop? Innovations that reduce the compliance burden for banks. (Full article found on pages 32-33)
Bankers are no strangers to technology, more and more banks are upgrading their service and product offerings. So it’s logical to wonder, with so many technological advancements taking place within community banking, why has the process of compliance remained in the dark? After years of analysis we’ve deduced that there are 5 major factors causing an over-investment in compliance: the rate of change, managing tasks manually, lack of standardization, reliance on 3rd parties and absence of a compliance budget. This article outlines 5 key dynamics that can renovate your compliance program and get you back to the business of banking. (Full article found on page 12)
We’ve all seen the uptick of transaction notices in newspapers. No, I’m not referring to the housing market, but rather the alarming rate of community banks closing their doors. Given the challenges in the banking industry, community banks looking at their options are increasingly realizing that the burden of compliance management has become more than they can handle.
Part III: Remediation - Compliance Lessons from the Construction Industry
Directors must ensure corrective actions are taken when weaknesses occur. Similar to preserving a house, an institution’s success depends on whether corrective actions are taken immediately.
There are three main aspects to successfully implementing corrective action: 1. Specifying and assigning corrective steps, 2. Confirming the correction occurred, and 3. Following-up at appropriate intervals to ensure the correction’s effectiveness.
Andy Greenawalt, CEO of the New Haven, Conn.-based bank compliance software firm Continuity Control, said regulation isn’t partisan, it’s cyclical. The low point in the cycle is 100 new regulations per year and the high point is 300. Greenawalt said he doesn’t see the pace of new regulations slowing. To maintain viability, credit unions must find ways to make change cost less.
Duke, a former community banker herself, knows there’s a difference between a too-big-to-fail institution and your local storefront lender. She said applying additional regulations and strict capital requirements under the international Basel III guidelines would “seriously impair” small lenders.
Part II: The Inspection Process - Compliance Lessons from the Construction Industry
Just like a home inspection, a banking inspection ensures the safety and soundness of the structure. An overlooked mistake can spell a failed inspection, or worse, a structural collapse—and perhaps liability. Even after a passed inspection, periodic maintenance is required.Prompt detection, and swift and thorough remediation of the problem areas, can halt concerns before they worsen, thereby protecting your institution.
Built to Last: Compliance Lessons from the Construction Industry
What do the most effective compliance programs have in common and how are they similar to construction projects? This article discusses the critical elements to building a successful compliance program - beginning with the blueprint.
The PAIN Score: Letting Data Drive Your Compliance Decisions
With 762 regulatory updates in the past 5 years, an average of 152 annually, It’s time to think about compliance in a more structured fashion. To allocate resources more methodically and get more done with less effort. To deal with this increase, the team of Continuity Control has created the PAIN Score, a data-driven method to compliance decision-making that scores each regulatory update along four metrics: Processes, Ambiguity, Interdependence and Noncompliance Consequences.
While most banks have sufficient regulatory and compliance controls in place, many have found it challenging communicating and documenting those controls to the satisfaction of their examiners. Andy Greenawalt answers questions on how community banks can more effectively report their risk management controls to examiners.
Looking To Technology To Lighten Dodd-Frank Compliance Load
"We still haven't seen the brunt of Dodd-Frank or increased examinations yet," said Greenawalt. "Every year credit unions are investing in more compliance but not modernizing the process. They are investing in horse drawn carriages while cars are available."
The regulatory burden on banks and credit unions has been exacerbated by the Dodd/Frank Act which threatens the viability of thousands of financial institutions. This trend has many financial institutions seeking technologically advanced methods to handle the burden. Andy Greenawalt, CEO of Continuity Control, had this to say,"With a new plan of attack and the right technology, executives willing to make hard choices about change can improve their banks' efficiency ratios...A necessary element of that improvement will be the ability to operate in this complex regulatory environment with minimal overhead."
Small Banks Struggling Under the Weight of New Regulations
Community financial institutions are bearing the greater burden of the Dodd-Frank Act. The overall costs of compliance do not change in accordance to the size of the institution, which is problematic for community banks and credit unions since they are not able to spread the cost as widely. “These banks were forced to deal with 157 rule alerts issued in just the last year, 58 of which came down in the last six months. All together, 762 rule alerts were issued by the individual regulatory agencies over the last five years with hundreds of subsequent updates” says Andy Greenawalt, CEO of Continuity Control. The rise in cost due to the increase in regulations is pushing community financial institutions to a compliance tipping point. Analysis of the soundness of community banks, conducted by Continuity Control, found that “half of the nation’s 7,000 community banks are barely surviving today.”
In July 2010, the federal Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was signed into law. And as a result many community banks and credit unions are struggling to keep up with the pace of change. Andy Greenawalt, CEO of Continuity Control, saw this as an opportunity to develop an innovative compliance platform to help community financial institutions manage the growing burden of compliance.
On the second anniversary of the Dodd-Frank bill, the technology to handle its stipulations is far from complete. That stands to reason, given how few of the rules and regulations implementing the sweeping reform bill have been written.
Continuity Control takes in $2.25M, triples office space
Bank compliance software maker ... Continuity Control, has taken the last round of funding that CEO and founder Andrew Greenawalt hopes it will need: a $2.25 million investment from Connecticut Innovations and several angel investors.
New regulations created to monitor the big banks “are squeezing the smallest competitors and turning our banking system into a commodity business.” These big banks are able to manage the regulatory burden by using sophisticated compliance platforms, previously unavailable to community financial institutions, leaving community bankers with “almost no incentive ... to start a small bank to serve their community” anymore.
The time requirements of new regulations are widely misconstrued by regulators and are exhausting the resources of community financial institutions that are valiantly trying to meet this burden. In today’s regulatory reality, “Word documents and Excel spreadsheets are inadequate tools” however, “by flipping your compliance strategy and tackling the burden in a new way, the costs of compliance can be aligned with the vision of the regulators.”
Regulatory Compliance and Community Banking Growth - Not an Oxymoron
The regulatory environment has been hard on the banking industry. A recent survey found that 47% of community bank executives cited regulations as their greatest impediment to growth. Community banks are facing a 20% efficiency disadvantage to the mega banks, but this doesn’t have to be the trend. This article outlines 5 dynamics that, when controlled, can reduce the over-investment in compliance. (Full article found on pages 9 - 10).
"Having a systematic way to test for compliance is critical," says Julie Conroy McNelley, a research director for Aite. She estimates there are 253 incremental regulations that will be added as a result of Dodd-Frank. "A lot of big banks have a platform in place to help with this. But with small banks, you have one or two people to handle compliance, and oftentimes the compliance and audits come with a huge paper trail."
We'd just like to clarify that our solution is far more than a downloadable compliance management module. Continuity Control is the only complete compliance platform for community financial institutions.
I was talking with a group of bankers the other day who had just heard the rallying cry that “risk management” is a hot topic. When I clarified that the concept of risk-focused supervision had been around since 1995, they were shocked. This seasoned group of top-level executives was even more astounded when I asserted that the traditional models of managing risk would fail in 2012 and beyond.
There is a widely held misconception that post-Dodd-Frank compliance will require banks to spend a majority of their resources to uphold compliance. This commonly held belief is preventing many bankers from making the best long-term decisions for their institutions. Statistics compiled by the regulatory operations center at Continuity Control indicate that the average community bank is projected to spend $200,000 in 2012 on compliance costs alone. However, in actuality there is an inverse relationship between a bank’s compliance expenditures and its compliance performance.
Analyst: Get Ready For Increased Scrutiny Of Marketing & Advertising
"Pam Perdue, chief compliance strategist at Continuity Control, said credit unions can expect to see "a lot more scrutiny around their behaviors with their members, and by that I mean the ways in which they advertise their product and service offerings," as well as the disclosures associated with those offerings."
Continuity Control in New Haven acquires two companies
The company acquired Compliance Services Group of Des Moines, Iowa, and Kirschler Peterson & Associates of Atlanta to support to the growing number of financial institutions that are clients of Continuity Control.
Continuity Control and My Compliance Info Join Forces
My Compliance Info founder Pam Perdue says that after seeing the Continuity platform and methodology, she simply could not go back to using antiquated compliance methods or inferior, piecemeal solutions. “We recognized not only the technological might of Continuity’s engine, but also its unbounded potential for revolutionizing the ways in which we think about and manage compliance,” she observed. “It’s our privilege to join Andy’s team and help them further leverage their proven track record of technology success. Continuity gets compliance under control.”
ATTUS Technologies Announces Partnership with Award-Winning Bankers Assistant by Continuity Control
“The Bankers Assistant program provides significant and sustained cost savings over any financial institution’s manual processes, but it also facilitates better controls and a more thorough audit trail for improved compliance adherence and documentation,” said Lori Moore, CRCM, director of compliance for ATTUS. “One of the most effective tools is the Monitor that allows financial institutions to see all of their compliance activities and their status in real-time.”
"As the WikiLeaks controversy brews, corporate ethics, privacy and the rights of whistleblowers are hot topics of debate. But what about security?"
Andy Greenawalt discusses the core challenge with traditional data management and the solution that banks and credit unions are finding in cloud services such as Google Docs. "The need for human access proves the PC era is broken. The sooner we move on, the more secure we will all be," Greenawalt says. "By putting traffic in the cloud, you make the security and access equation fundamentally more solvable. It helps to keep you from missing a gap."
"Andy Greenwalt's Continuity Control wants to keep community banks in business by making compliance more affordable."
With regulatory compliance Apps that are as easy to purchase and install as an iPhone App, Control gives community banks with only one or two people in the Compliance department the benefits of a tier one bank's compliance "apparatus" at a fraction of the cost.
Northern Federal Credit Union is using Continuity Control's online software application and online resources to boost the credit union's compliance training and vendor management. Control's applications have kept the credit union from having to hire an additional employee and made the compliance officer much more efficient. "It saves me at least three to four hours a week," said Compliance Specialist Jennifer Davis, who added the tool helps her more effectively manage, monitor, and coordinate compliance activity throughout the entire credit union.
"We did everything manually," based on a Bank Secrecy Act (BSA) policy template purchased online, Gilman explained. "I was following an FFIEC manual and hoping I got it right. I spent a week every year preparing and reviewing the policy and then following up with staff to make sure each task was accomplished. Compliance was almost like a line of business for us."
BSA compliance is now largely automated at York County FCU and takes less than three days - that's a cost reduction of nearly 80% for just one area of regulatory compliance. Gilman plans to activate the entire suite of nearly 40 Control applications as part of the Compliance Assistant Program.
"First Service CU responded to the June 2009 holdup by deploying an automated compliance package designed to guarantee that controls such as alarm testing and inventory of bait money are in place at each of the credit union’s 10 locations around Harris County.
"Together with our senior vice president of IT, I worked on a credit union-wide assessment of our security and compliance policies, which showed a definite need for FSCU to automate procedures, organize our control policies and create consistency among all branches," said Sid Zahn, vice president of compliance and internal audit at the Texas credit union."
From compliance management to fraud detection software, community banks are busy considering systems.
One company involved in a compliance management software niche informally called "nagware" is Continuity Control in New Haven, Conn. The company offers 40 specialized applications to help executives and compliance officers...
Mobile-Specific Guidance and Regulations Surely Lie Ahead
Rules and regulations specific to the fast-growing mobile banking channel will be a fact of life. It’s just a matter of time. That’s according to people who make their living helping credit unions and other financial institutions accommodate new technologies and the compliance challenges that come along with them, as well as shape the rules themselves.
The One ‘Tax’ CUs Aren’t Exempt From: Compliance Cost
Credit unions may have a tax exemption, but they’re anything but exempt from the “compliance tax,” according to one company.
Indeed, in the inverse of typical tax rates, the smaller the CU the larger the compliance tax burden in most cases, reports Continuity Control, a provider of an on-demand, web–based software platform for compliance.
“We’re seeing this dramatic increase in back-end costs to support every dollar of assets,” said CEO Andy Greenawalt, referring to what the company calls the “compliance tax.”
The New Approach to Regulation: Moving Beyond Merge or Die
The Frank-Dodd financial reform bill is the latest development in the growing regulatory oversight that is burdening the entire financial services industry and crippling community financial institutions in particular. Some financial industry experts contend that the only options for community financial institutions are to grow, merge or die. The reasoning behind this logic is that there are just two real alternatives for credit unions. The first is to grow, via organic or strategic means, with market share penetration or a merger. The latter, death, needs no real explanation. The assumption that the cost of compliance is not elastic and cannot be scaled down for smaller institutions holds the “merge or die” argument together.
Vendor Pitches Compliance, ‘Nagware’ as cost, headache cutter
On the heels of the epic banking regulatory reform bill that President Obama signed into law on July 21, we were very pleased to share our perspective, and the method by which we aim to help community financial institutions survive and thrive by cutting their Compliance Tax, on the cover of American Banker July 26, 2010. “What we hear from people all the time is, ‘Just tell me what I need to do,’ ” said Andy Greenawalt, the founder and chief executive of Continuity Control.
How CUs Can Collaborate To Gear Up For 'Compliance Tax' Burden
A recent report makes the assertion that "by 2013, the cost of regulatory compliance and risk management will have priced Tier 3 and Tier 4 financial institutions out of the market." This Compliance Tax can be addressed, and I believe the solution is found in technology...
This article, which appears on Page 32, explores the adoption of social media within the banking industry and how technology can be used lower the burden of social media compliance. One of the top reasons cited by community banks for avoiding social media has been the issue of compliance and the concerns it brings.
While compliance regulations have not kept pace with the adoption of social media, banks still must be proactive in establishing a policy that clearly provides guidance and controls for social networking. This article provides helpful tips to get started and how the use of technology can be used to manage the new risks that come with social networking.
Continuity Engine is enlisting other companies to help it streamline and automate the tasks it handles for community banks that must satisfy regulators. Through its ActionPack Alliance, the company is working with its first group of outside providers, writing modules for Continuity Engine’s compliance automation system, Control. Control now offers about 60 ActionPacks and there are more than 400 financial institutions using the platform.
Credit unions are facing the impact of employees using social networking Web sites, such as Twitter, for both professional and personal use. As a result, Arizona State CU built social media guidelines in to its employee handbook. The guidelines were based on the free social media policy that the credit union downloaded from Continuity Engine. The policy was created from a collaborative effort and it’s subject to improvements suggested by the financial institutions that created it through crowdsourcing.
"Facing increasing pressure to improve their data security, a growing number of small and midsized banks are looking for outside help. Union Savings Bank has partnered with Continuity Engine to create regulatory compliance modules, known as ActionPacks, that manage everything from human resource policies to IT change controls."
First National Bank Alaska Selects Continuity Control to Automate Regulatory Compliance and Risk Management
Online Compliance Solution and Expert Guidance to Reduce Regulatory Burden, Improve Accuracy and Increase Efficiency
Senior Auditor Julie Anderson of First National Bank Alaska said: "We had been looking at providers in the risk management space and realized they only solved one part of the problem. About that time, we encountered another institution that was using the Continuity Control platform and were impressed by what we heard. Ultimately, we chose the platform because it allows us to manage, streamline and automate a large part of what our team has to do manually each day."
First Regulatory Index Launched to Gauge Burden on Banking Institutions
The index was designed to equip banking professionals, regulators and legislators with detailed data-driven metrics analyzing the impact of new and existing regulations on financial institution resources, specifically budget and employee headcount. Regulatory changes in just the first three months of this year will cost community banks over a quarter of a billion dollars, according to the BCI.
Continuity Control and cbanc Network Partner to Offer Quarterly Regulatory Briefing for Community Financial Institutions
RegAdvisor is presented each quarter via an online Webcast by Continuity Control's compliance experts and will include real-world feedback from cbanc Network's financial institution members. This valuable update will provide a clear explanation of what the most recent regulations mean to an institution, help assess the workload involved and highlight critical actions banks must take to avoid potential penalties.
Continuity Control Launches Compliance Platform Customized for Small- to Mid-sized Credit Unions
Offers Most Complete Solution for Keeping Up With Rising NCUA Requirements
Continuity Control™, the only complete compliance platform built for community financial institutions, today announced the release of its regulatory compliance management system tailored to the needs of small- to mid-size credit unions. The new program enables credit unions to significantly reduce the costs of keeping up with the NCUA regulatory requirements.
CBSC, Continuity Control, and Young & Associates Partner to Modernize Regulatory Compliance for Illinois Community Banks
Compliance Partnership Sets New Standard for Community Banks Nationwide
Community BancService Corporation, Inc. (CBSC), a
subsidiary of the Community Bankers Association of Illinois (CBAI), today announced its
partnership with and “preferred provider” endorsement of Continuity Control, the only complete
compliance platform for community banking. Together with CBAI’s long-term partner Young &
Associates, Inc., a compliance consultant to community financial institutions, the three organizations
have created a reference model for community banks, fundamentally changing the economics of
Connecticut Innovations Makes $1 Million Investment in Continuity Control Inc.
Connecticut Innovations (CI), the state’s quasi-public authority responsible for growing Connecticut businesses through innovative financing tools and assistance, today announced that it has made a $1 million follow-on investment in Continuity Control Inc. of New Haven, Conn., through its Eli Whitney Fund. CI’s investment was part of a $2 million Series B funding round that also included existing investor LaunchCapital and individual investors.
The Bank Of Marion Selects Continuity Control For Compliance Platform
High-Performing Community Bank Looks To Improve Regulatory Efforts And Reduce Costs. By centralizing all regulatory management activities, the Continuity Control platform enables financial institutions like The Bank of Marion to reduce the resources they spend on compliance while ensuring that they pass regulatory muster and effectively keep up with the steady stream of regulatory changes.
REGULATIONS PILING UP FOR COMMUNITY BANKS AND CREDIT UNIONS ACCORDING TO CONTINUITY CONTROL ANALYSIS
Compliance Solution Adds Another 64 Controls To Stay Ahead Of Regulatory Onlsaught
According to Travis Colquett, Vice President and Compliance Officer at First Citizens Bank in Luverne, AL, the Continuity Control platform eliminates the need to purchase separate tools to deal with various components of compliance.
“Working with my Continuity Control strategist, we identified eight to ten different areas that needed controls, and within a couple weeks they were in place,” says Mr. Colquett, who is a former FDIC examiner. “Once I set them, I never have to touch them again. And If someone on my staff leaves, I only have to reassign a new person to that role, which is a ten-second task.”
Continuity Control Experiences Exponential Growth in 2011
Company doubles revenue for fifth consecutive quarter
“In 2011, financial institutions had to manage more than 200 new regulations alone, a number certain to grow in 2012,” explained Andy Greenawalt, founder and CEO of Continuity Control. “Our robust, intelligent platform enables us to partner with our clients to deliver what the market needs - cost and risk reduction. The dramatic growth we have experienced demonstrates our ability to help financial institutions in a truly unique way, allowing them to achieve more with fewer resources and less work. Once overwhelmed by government oversight, our bank and credit union customers can now easily and cost effectively maintain compliance and focus on serving their communities.”
Continuity Control Doubles Revenue In Q3 2011, Partners With BancVue
Complete compliance solution provider continues dramatic growth. "By acting as a compliance co-op, Continuity Control can bring our clients all of the technology, knowledge, expertise and scale needed to drive down the cost of compliance." ~ Andy Greenawalt
Continuity Control Endorsed by Western Independent Bankers
WIB, a trade association for more than 200 community banks in the Western U.S., endorsed the Continuity Control compliance service following a careful due diligence process, which was driven by the updated FFIEC guidance for vendor management.
Connecticut Innovations Makes Follow-on Investment in Continuity Control Inc.
Connecticut Innovations (CI), the state’s quasi-public authority responsible for technology investing and innovation development, today announced that it has made a follow-on investment of $250,000 in New Haven-based Continuity Control Inc. (formerly Continuity Engine Inc.) through its Eli Whitney Fund.
Recognized for combating industry challenges with advanced, forward thinking solutions. The annual award recognizes the accomplishments of Connecticut-based companies and is designed to foster innovation and stimulate interest in the implementation of quality programs.
Continuity Control Selected by AlwaysOn as an AlwaysOn East Top 100 Winner
Continuity Control chosen by AlwaysOn as one of the AlwaysOn East Top 100 winners. Inclusion in the AlwaysOn East 100 signifies leadership amongst its peers and game-changing approaches and technologies that are likely to disrupt existing markets and entrenched players.
Continuity Control Selected by AlwaysOn as an OnDemand Top 100 Winner
Recognized for creating new opportunities in cloud computing and SaaS. Continuity Control was specially selected by the AlwaysOn editorial team and industry experts spanning the globe based on a set of five criteria: innovation, market potential, commercialization, stakeholder value and media buzz.
Continuity Control Among Innovative Companies to Showcase Technology at FinovateSpring 2010
This event showcases the most cutting edge financial and banking technology innovations, and Continuity Control was selected from a competitive field for its breakthrough approach to organizing and simplifying the work of compliance and its use of collaboration.
Continuity Engine Changes Name to Continuity Control
Financial compliance solutions provider streamlines company name and product line to better reflect full scope of offerings ... As a company that offers an innovative approach for addressing compliance and financial controls, the new name better aligns with the vision of Continuity Control to create cost-effective compliance solutions that streamline, organize and manage policies, procedures and audit programs.
Continuity Engine Founder and CEO Named to Connecticut Technology Council Board of Directors
State association selects financial services technology entrepreneur to help guide strategic direction. The CTC is a partnership of Connecticut-based technology providers and organizations committed to growing and diversifying the state’s technology base.
Industry demand drives growth of compliance solutions provider ... The company’s success and increased size are direct results of the increasing government oversight placed on financial institutions, the increasing cost of compliance, which the company calls the Compliance Tax™, and the cost-effective solution that Continuity Engine offers for that tax.
Continuity Engine Announces Addition to ActionPack Alliance, ATTUS Technologies
Compliance solutions providers Continuity Engine and ATTUS Technologies partner to create innovative, on-demand plans. “ATTUS works with thousands of financial institutions to address various regulations and, as federal oversight continues to grow, to keep pace with what is legislated, our customers need procedures they can depend on."
Continuity Engine Appoints Mickey Goldwasser to Lead Marketing Efforts
Financial industry veteran brings 25 years of experience to compliance solutions provider. This addition bolsters the financial services expertise that Continuity Engine uses to help its customers dramatically simplify the compliance process.
Continuity Engine’s Control Named Best Value/ROI at 2009 Financial Technology Insight Summit
Continuity Engine received the customer choice Best Value/ROI award from the Financial Technology Insight: Best Practices in Global Banking 2009 Summit. “This award represents the insights of the industry from the most well informed CIOs in the country, and to have them see Control as the best value for the money is amazing."
This version adds several third party ActionPacks to the ActionPack Alliance program and an iPhone interface for remote compliance work from any ActionPack. Control is a Web-based SaaS (Software as a Service) solution that lets users access an ActionPack library to simplify the work of compliance by turning it into a set of simple steps, automating those steps and delivering all of the reporting to satisfy oversight needs.
Continuity Engine Receives Innovation Award from the Connecticut Technology Council
“The Connecticut Technology Council recognizes the significance of new technology and its ability to transform a company or industry,” Andy Greenawalt, founder and CEO of Continuity Engine explained. “We are extremely honored to first be named a Company to Watch, and now a winner of the Most Significant Early Stage Capital Investment award. This is welcomed support of our efforts to recognize regulatory compliance barriers that all community financial institutions face and transform the process with Control.”
Continuity Engine Selected by the Connecticut Technology Council as a 2009 Company to Watch
Continuity Engine, the creator of an on-demand platform that automates the regulatory compliance process for community banks and credit unions, has been selected by the Connecticut Technology Council as a 2009 Company to Watch in recognition of its flagship product, Control.
Continuity Engine Launches Compliance Platform, Control
On demand platform makes compliance easy for banks and credit unions ... Control is a Web-based SaaS (Software as a Service) solution that lets users simplify the work of compliance by turning it into a set of simple steps, automating those steps and delivering all of the reporting to satisfy oversight needs.
Continuity Engine is Firing on all Cylinders With Second Acquisition in a Month.
Continuity Engine, a new company that simplifies operations, risk management and regulatory compliance for banks and credit unions, has made its second acquisition in the last month by announcing the acquisition of Business IQ, an innovator in compliance and profitability software for the community banking industry.
Continuity Engine, a new company that simplifies regulatory compliance for banks and credit unions, announced the acquisition of Continuity Integrators, a pioneer in the use of collaboration and social networking for business continuity.
Continuity Engine Launched by Perimeter eSecurity Founder, Internet Veteran and Industry Luminary
Continuity Engine, a new company that simplifies regulatory compliance for banks and credit unions, announced its founding and seed funding by Gnostic Ventures. Continuity Engine was founded by Andy Greenawalt, SaaS pioneer and founder of Perimeter eSecurity; and Mike Jennings, business continuity veteran.