New report analyzes the cultural, technological, and operational impacts Section 1071 will have on SMB lenders
The enactment of Section 1071 of the Dodd-Frank Act will soon transform the credit market, expanding the remit of the Consumer Finance Protection Bureau (CFPB) to include small to midsize business (SMB) lending. Section 1071 will have cultural and training implications that will be enterprise-wide for lending financial institutions (FIs). In a new Impact Report, Section 1071 and SMB Lending: Understanding the Operational Impacts, research and advisory firm Aite-Novarica Group analyzes the impact of Section 1071 as currently proposed, including the cultural, technological, and operational impacts it will have on SMB lenders.
“The coming enactment of Section 1071 will be among the most impactful regulations in the business lending world in recent memory, with legal, reputational, operational, and cultural implications,” said David O’Connell, Strategic Advisor at Aite-Novarica Group and author of the new report. “FIs should prepare immediately for the required firewalling of Section 1071 data away from SMB application decision-makers, despite the fact it goes against the muscle memory of credit underwriters.”
About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.