At a time when regulatory direction feels uncertain and examiner consistency is in flux, compliance leaders are doubling down on the fundamentals. At CBA Live in Orlando, Leaders in Lending host Lynn Sautter Beal sat down with Aaron Rykowski, Chief Compliance Officer at WesBanco, and Mikey Reynolds, Director of Compliance at Zions Bancorporation, to unpack what’s top of mind for the compliance community.
With both leaders serving on the Consumer Bankers Association’s CFPB Committee, their conversation offered a candid look into what’s changing, what’s holding steady and how banks are adapting.
The Current State of CFPB Engagement
There’s no denying the atmosphere of uncertainty around the CFPB. As Aaron shared, the once clear channels for dialogue have grown murky. While the CBA has historically played a key role in shaping regulation through direct feedback and comment letters, the current moment is defined more by “wait and see” than engagement.
Mikey echoed that sentiment, noting that while engagement has slowed, institutions still have to operate within the codified rules and that means sticking closely to exam manuals and established expectations.
Forecasting with a Moving Target
From leadership transitions to the prospect of new rules, the regulatory outlook remains hazy. Aaron emphasized the importance of common sense supervision and consistent enforcement. As a former FDIC examiner himself, he knows firsthand the value of transparency and steady dialogue.
Right now, both leaders are bracing for potential changes depending on political appointments and the trajectory of CFPB priorities, especially as it relates to enforcement versus supervision.
AI, Fintech, and the Tech Curve
Technology, and AI in particular, was another key theme. Aaron and Mikey discussed how banks are working to govern the use of AI responsibly, particularly in lending and fraud detection.
The takeaway? Compliance doesn’t go away with innovation. It just evolves. Leaders need robust third-party risk management and a clear understanding of how tools are working under the hood. And as fraudsters leverage advanced tools themselves, staying ahead means combining operational effectiveness with regulatory rigor.
State-Level Patchwork and What Comes Next
With federal regulation in a bit of a lull, state-level oversight is stepping in. Aaron pointed out the real costs, both operational and financial, of managing a patchwork of state laws, especially for institutions that operate nationally or work with fintechs that do.
The consensus is uncertainty isn’t a reason to pause. It’s a reason to prepare. And that preparation includes solid compliance frameworks, thoughtful risk assessments and open collaboration across the industry.
What’s Ahead for 1071 and 1033
Looking ahead, both Aaron and Mikey expect continued movement on two major CFPB rules: the 1071 small business lending data collection rule, and the 1033 open banking rule. While litigation and political shifts may shape how these evolve, the need for readiness is already here.
Mikey summed it up well: now is the time to shore up your program. Use any lull to review documentation, improve frameworks, and share best practices.
Compliance may not come with a crystal ball, but collaboration and consistency go a long way. As Aaron joked, sometimes it feels like you're consulting a Magic 8-Ball, but building resilient, transparent processes gives institutions the clarity they need to move forward.
