This presentation covers a brief overview of the "hot topics" effecting community banks in 2012.

1. Revenue Generating Solutions For The “User”

2. Scott Sharp
HOT TOPICS FROM THE EXPERTS

3. Information Security
Corporate Account Take Over (CATO)
• Objective:
1) Breach Customer
– ZeuS – Polymorphic/Custom Trojan
2) Coerce Bank Personnel
– Our Phones are down?
– I really need this now?
3) Take the Money and Run!
– Wire
– ACH domestic or IAT (w History)

4. Information Security
Corporate Account Take Over (CATO)
• Protections
– ACH Schedule & Check Account
Numbers
– Voice Authorization for Wire/ACH over
pre-set limit
– No foreign RDC
– No “Drawn Against Uncollected
Funds”
– Education
– Reference TDB Guidance
– http://www.ectf.dob.texas.gov/index.htm

5. Information Security
• http://www.bluekaizen.org/securitykai
zen_mag/issue4/Security_Kaizen_41.
pdf
– Hacking Banks for Fun & Profit
– Facebook Awareness
– Best Practices for InfoSec Training
• Less Thought of Breaches (part 364)
– Mobile Phones
– Client List
• Still Using IE7? Is Your Customer?
– BEAST – Break SSL/TLS

6. Use Data & Tools to Your Benefit
• National Credit Tool File
– Perform you own analysis
– We can provide Header / Format
– Put your examiner hat on!

7. Use Data & Tools to Your Benefit
• HMDA / CIP / PIF Data
– Find “Fair Lending” violations before the
examiners do
– Prevent UDAAP – Small Business is Next
– Dive Deeper:
• Check Loan Amounts for Areas
– Only Low Amounts in Low Income Areas?
» Makes Sense Right? No?
• Run for Several Years Prior
– “Regression Testing”
• Prevent “Racist Output Without Racist Input”
• In Case of Question – Ask for Examiner Data
Dump!

8. Use Data & Tools to Your Benefit
• PIF / CIP Data for Deposit Accounts
– Class Actions for Account Structures
• Check Deposit Account Types by Area
• Check Deposit Account Types by
Ethnic Groups

9. Use Data & Tools to Your Benefit
• CRA Data
– Map IT! / Don’t Branch IT!
• Export Data to Excel
• Import into MapPoint
• Look for holes / concentrations
• Compare to Demographics or Income Maps
• iPad for Board
– Secure Device/Data and you’re all set
• Presentation Available @ CoNetrix Conference

10. Use Data & Tools to Your Benefit
• Vendors – What’s Available?
– P2P – Advertise IT!
– Text Alerts – Payment Reminders
– Mobile Banking
– Marketing Support
– Cash Management
• Let the service outweigh the risk
“As bankers we have a tendency to market the
products we buy to support the customer rather
than the features of the products that mean the
most to the customer.”

11. Tools to Complete
• OFM/PFM – Personal Financial Management
– Spending Analysis
– Account Aggregation
• P2P – Person to Person Payments
– Available in Bill Pay
• Mobile Merchant Processing
– Through Referral
• Mobile/ATM Check Deposit (soon)
• Social Media
– On Your Own or BuzzBanking

12. Regulatory
• June 30th 2012 – FinCEN files must be
filed electronically
• Reg Z Interpretation
– Watch out for bonuses
• Fair Lending / UDAAP
– Small Business
• Vendor Management (FIL-44-2008)
• Payday/Predatory Lending
– Look at Georgia
• Reg E – Transfers (Consumer & Foreign)
• OCC – No blanket preemption (CFPB)
– Might as well got the way of Frost!

13. Relax!
Consumer Financial Protection Bureau
(CFPB)
• Good Web Site Template (Dummy Proof)
– “Know Before You Owe”
• Non-Bank Focus / Rules
– 9 months – 1 yr Rule Implementation
(after issuance)
• 120 Hour Estimate for Compliance
– Systems (Majority)
– Disclosures (8)
– Policies (8)

14. Relax!
Dodd-Frank
• Main Issues Already Implemented
• Political Influence
– Wait for November or Go to D.C.?
• Too Big – Wait for Guidance
• Too Confusing – Wait for Guidance
Durbin Amendment
• Competition Limitations
– Delayed by Implementation of
Interchange Caps

15. Questions?