| name | financial-services-industry |
| description | Financial services industry knowledge for consulting engagements. Use when working with banks, insurance companies, asset managers, or fintech organizations. Covers regulations, systems, and industry-specific considerations. |
Financial Services Industry Skill
Overview
Provides financial services context for consulting engagements including regulatory frameworks, core systems, risk management, and industry considerations.
Industry Characteristics
| Characteristic | Description |
|---|
| Regulatory Intensity | Heavily regulated, multiple supervisors |
| Risk Culture | Risk management embedded in operations |
| Data Sensitivity | PII, financial data, transaction records |
| Technology Dependency | Real-time processing, high availability |
| Competitive Dynamics | Traditional vs. fintech disruption |
| Trust Imperative | Reputation and customer trust critical |
Regulatory Framework
Banking Regulators (US)
| Regulator | Scope |
|---|
| OCC | National banks |
| Federal Reserve | Bank holding companies, state member banks |
| FDIC | Deposit insurance, state non-member banks |
| CFPB | Consumer financial protection |
| State Regulators | State-chartered institutions |
Securities & Investment
| Regulator | Scope |
|---|
| SEC | Securities markets, investment advisers |
| FINRA | Broker-dealers |
| CFTC | Derivatives, commodities |
| State Securities | Blue sky laws |
Insurance
- State insurance commissioners
- NAIC model regulations
- State guaranty associations
Key Regulations
| Regulation | Focus |
|---|
| Basel III/IV | Capital requirements |
| Dodd-Frank | Systemic risk, consumer protection |
| BSA/AML | Anti-money laundering |
| GLBA | Privacy |
| SOX | Financial reporting controls |
| PCI-DSS | Payment card security |
Financial Services Systems
Core Banking
| System | Purpose |
|---|
| Core Banking Platform | Account management, transactions |
| Payments Hub | Payment processing, clearing |
| Lending Platform | Loan origination, servicing |
| Treasury Management | Cash, liquidity management |
| Trade Finance | Letters of credit, guarantees |
Capital Markets
| System | Purpose |
|---|
| Trading Platform | Order execution |
| Risk Management | VaR, exposure monitoring |
| Portfolio Management | Investment tracking |
| Settlement | Trade settlement, custody |
| Market Data | Pricing, analytics |
Insurance
| System | Purpose |
|---|
| Policy Administration | Policy lifecycle |
| Claims Management | Claims processing |
| Underwriting | Risk assessment |
| Actuarial | Pricing, reserving |
| Agency Management | Distribution |
Enterprise
| System | Purpose |
|---|
| CRM | Customer relationship |
| Data Warehouse | Analytics, reporting |
| GRC | Governance, risk, compliance |
| Document Management | Records, workflow |
| HR/Finance | Back office operations |
Key Stakeholders
Executive
- CEO
- CFO
- CRO (Chief Risk Officer)
- CIO/CTO
- CCO (Chief Compliance Officer)
Business Lines
- Retail Banking
- Commercial Banking
- Wealth Management
- Capital Markets
- Insurance Products
Risk & Compliance
- Enterprise Risk
- Credit Risk
- Market Risk
- Operational Risk
- Compliance
Regulators
- Primary regulator
- Examination teams
- State regulators
Common Engagement Types
Digital Transformation
- Core modernization
- Digital channels
- Data analytics/AI
- Open banking/APIs
- Cloud migration
Risk & Compliance
- Regulatory remediation
- AML/BSA program
- Model risk management
- Third-party risk
- Operational resilience
Strategic
- Market expansion
- M&A integration
- Product strategy
- Customer experience
- Fintech partnership
Financial Services Considerations
Regulatory Scrutiny
- Examination cycles
- Consent orders, MRAs, MRIAs
- Regulatory reporting requirements
- Model validation requirements
- Change management documentation
Risk Management
- Three lines of defense
- Risk appetite framework
- Model governance
- Vendor risk management
- Business continuity
Technology Constraints
- Legacy system complexity
- 24/7 availability requirements
- Real-time processing needs
- Data security requirements
- Audit trail requirements
Terminology Quick Reference
| Term | Definition |
|---|
| AUM | Assets Under Management |
| NIM | Net Interest Margin |
| NPL | Non-Performing Loans |
| LTV | Loan-to-Value |
| CAR | Capital Adequacy Ratio |
| VaR | Value at Risk |
| KYC | Know Your Customer |
| AML | Anti-Money Laundering |
| MRA | Matter Requiring Attention |
| MRIA | Matter Requiring Immediate Attention |
References
See references/ folder for:
- Regulatory examination process
- Core system vendor landscape
- Industry benchmarks
- Risk framework templates
