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. Transactions are becoming faster, more complex and more interconnected. The financial system needs regulators who can adapt to rapid change.

So, state regulators adopted a dynamic and collaborative approach called "Networked Supervision." Networked Supervision doesn't just respond to changes in the industry, but proactively improves the supervisory process.

The result? A safer state financial system for consumers, the industry, and regulators alike.

See the Benefits

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

Three platforms, one 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

CSBS Data

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, chartering, 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.

Benefits

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…

Consumers

Networked Supervision protects you:

  • Where your money is stored, whether in a bank or in a digital wallet.
  • When you engage with a bank or company licensed to do business in your state.
  • When your money moves, whether it is paying a company, getting paid or sending money to your friends and family.

Businesses

Networked Supervision means:

  • A faster, better, more efficient licensing & chartering experience. 
  • A faster, better, more efficient examination.
  • A consistent, data-driven and mutually beneficial relationship with your regulator.

Examiners

Networked Supervision provides for your agency:

  • Enhanced collaborative tools when working with your colleagues across state lines.
  • Enhanced data & analytics to see what is happening in your local communities and institutions in real time.
  • Training to ensure your agency can produce a Workforce of Tomorrow.