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Networked Supervision

A supervisory approach that produces highly-skilled examiners, a more streamlined and efficient compliance process, and a safer consumer experience.

How consumers borrow, invest, store and send money is changing more rapidly than ever before, and the pace of that change is only set to accelerate. State regulators have always been responsive to changes in the industry, responding to innovations in banking and finance for over 100 years. But the changes affecting financial services in the past several years are unique. Companies and transactions are becoming faster, more complex and more interconnected than ever before.

So, state regulators adopted a dynamic and collaborative approach to supervision. Networked Supervision is designed to not just respond to changes in the industry, but to proactively improve supervisory tools before they’re needed and implement as they’re needed in each state.

Jump to Section: Core Elements | The NetworkBenefits | WorkstreamsNews

Core Elements

  1. Assessing, Licensing, and Chartering New Businesses & Banks Faster
  2. Examining Licensed Businesses & Chartered Banks Better
  3. Producing Real-Time Data on Business & Bank Health and Consumer Protection

The Network

A system comprised of three platforms forming an efficient and effective state financial system

Nationwide MultiState Licensing System (NMLS)

Simplifies licensing of non-banks entering the marketplace

State Examination System (SES)

Connects agencies and companies for efficient examinations


Gives examiners a real-time view into financial and economic data


How It Used To Work

Current & Future Process


States would communicate with one another on an ad-hoc and one-on-one basis.

States actively communicate as a federated unit, sharing secure information instantly and with all regulator stakeholders simultaneously.


States built their own systems and processes for licensing, charting, and examining institutions. Institutions in multiple states had to navigate each process separately.

States use NMLS, SES and more to harmonize and automate processes, reducing confusion and streamlining work for institutions. Each platform is built to grow and evolve with the changing financial landscape.


States frequently examined institutions on their own. Institutions experienced multiple exams from each state they operated in.

States work together to conduct a single, comprehensive exam on institutions in multiple states. Institutions work with one point of contact and experience fewer exams.


States used local and personally-collected data to scope for risks. States relied on periodic data from federal agencies.

States use live, interactive dashboards of curated data to monitor the health of their economy, their institutions and their consumers. Data can be examined as broadly as an entire industry and as granular as a single transaction.


A system that is more integrated, more efficient and more effective for everyone while maintaining a strong and diverse state financial system.

How Does Networked Supervision Benefit…

Key Workstreams


State regulators have identified eight priorities for 2021 to advance Networked Supervision and the state regulatory system.


SES is an examination system built by state regulators for state regulators and the companies they supervise.


CSBS will build a Modernized NMLS to one standard that implements the MSB Model Law and MMLA.

Money Service Businesses

All states that regulate MSBs will participate in or accept "One Company, One Exam" for 75 MSB Firms.

Money Service Businesses

All states with licensing authority over MSBs will adopt the Multi-State MSB Licensing Agreement.

Money Service Businesses

CSBS will produce and assist states in implementing an MSB Model Law using NMLS.


State regulators will pilot “One Company One Exam” for a mortgage company to reduce regulatory burden and create new efficiencies.


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