Product from banking Spectrum Said to Simplify Compliance
Software to produce the "truth in savings" disclosures required by last year's banking reform is being offered by a New York consulting firm.
The Federal Deposit Insurance Corp. Improvement Act requires disclosures of standardized deposit information to bank customers. Rules to enforce the law are to be adopted no later than Sept. 19. Banks must start complying by next March.
In compliance with state rules, thousands of banks already give their customers rate, yield, fee, and other information when they open accounts. The new federal rule simply makes truth-in-savings information more uniform on a national basis.
In the past, most banks have had to devote considerable manpower to writing and updating disclosure forms.
Banking Spectrum, a New York-based consulting firm, has helped banks write and develop these disclosure forms and prototypes for retirement-investment products for years. Executive vice president John J. Mundt said creating a software product is a natural extension of what his firm already does.
The consultant's Disclose system, which runs on personal computers, it formats required truth-in-savings data. These includes fees, charges, and penalties, as well as minimum account requirements, annual yield, and other information.
In addition, the program maintains a data base on other federally mandated disclosures, including Federal Reserve Regulation CC, which deals with funds availability disclosure, and Regulation E, which covers electronic funds transfer.
In addition to generating the actual documents a customer receives upon opening a account, Mr. Mundt said, Disclose can download its data into most graphics programs to create brochures or other marketing materials. Disclose is currently being sold for $695.
As the law is further amended and refined, Banking Spectrum will offer upgrades to Disclose customers.
Ms. Sullivan is a freelance writer based in New York.