Digital Banking Issues – What Are the Compliance Requirements?

Date:

Sep 25, 2024

We are seeing a rapid shift in the way financial institutions interact with their customers and conduct business to a more remote, online delivery model. Not that these capabilities haven’t always been present, but since the pandemic, much more business is conducted remotely, and this is a trend we can expect to continue. What are the requirements to keep in mind when conducting business in this fashion? 

What challenges exist to remote business interactions? For starters, there are Bank Secrecy Act issues when opening accounts and maintaining relationships with customers who are never seen.

The rise in electronic transactions means increased attention to Regulation E compliance, for example, especially when it comes to handling disputes (which are expected to increase in number). The provisions of the E-SIGN Act must be followed to the letter as well. In lending, there is now the capability to originate a loan from application to closing without ever meeting the borrower (and this includes notarization).