Regulatory compliance is never fun—especially when the stakes are high. Section 1071 of the Dodd-Frank Act adds a new layer of complexity, requiring financial institutions to collect and report detailed data on small business lending activities, like the race, gender, and ethnicity of business owners. The price of getting it wrong? Hefty fines, a hit to your reputation, and the operational headaches that come with it.
Our latest infographic breaks down what this all means for equipment finance lenders. Did you know non-compliance fines have shot up 45% over the last five years? Or that compliance costs can eat up to 10% of your operational expenses? And if you think playing catch-up later will save you, think again—delaying compliance adaptation increases costs by 30%.
But here’s the real kicker, a complicated compliance process not only strains your budget but also makes borrowers less likely to complete applications. In fact, 70% of borrowers abandon lengthy loan applications. Ready to see how you can stay compliant and improve your borrower experience? Check out our infographic and learn why automating your reporting process can save you time, money, and a whole lot of headaches.
find out more about our section 1071 solution
Sources
- “Small business lending rulemaking.” Consumer Financial Protection Bureau
- “Section 1071 of the Dodd-Frank Act – Small Business Lending Data Collection.” Wolters Kluwer
- “The regulator’s new toolkit.” Deloitte
- “2024 banking regulatory outlook.” Deloitte
- “The True Cost of Non-Compliance in Business.” FMP Global
- “The True Cost of Non-Compliance.” Colligo
- “The Ultimate Cost of Noncompliance on Your Business.” sumtotal
- “The 2023 Thomson Reuters Risk & Compliance Survey Report: A delicate balance between risk and reward.” Thomson Reuters
- “How technology can help to boost business productivity.” Thomson Reuters
- “PwC: Global Risk Survey Findings – Banking and Capital Markets.” PwC
