Will AI Replace Financial Examiners?

Direct and participate in formal and informal meetings with bank directors, trustees, senior management, counsels, outside accountants, and consultants to gather information and discuss findings.

text generation — Information exchange coordination largely automatable

Recommend actions to ensure compliance with laws and regulations, or to protect solvency of institutions.

decision support — Compliance guidance drafted; human verifies and owns

Prepare reports, exhibits, and other supporting schedules that detail an institution's safety and soundness, compliance with laws and regulations, and recommended solutions to questionable financial conditions.

text generation — Generate operational reports from structured data

Resolve problems concerning the overall financial integrity of banking institutions including loan investment portfolios, capital, earnings, and specific or large troubled accounts.

decision support — Financial decisions carry accountability and require authority

Investigate activities of institutions to enforce laws and regulations and to ensure legality of transactions and operations or financial solvency.

data analysis — Analyzes records and processes; human confirms conclusions

Review balance sheets, operating income and expense accounts, and loan documentation to confirm institution assets and liabilities.

data analysis — Financial indicator monitoring is well-suited to AI analytics

Plan, supervise, and review work of assigned subordinates.

interpersonal — Employee supervision is accountability-bearing human work

Review audit reports of internal and external auditors to monitor adequacy of scope of reports or to discover specific weaknesses in internal routines.

data analysis — Organizational process monitoring is largely digital and analyzable

Examine the minutes of meetings of directors, stockholders, and committees to investigate the specific authority extended at various levels of management.

data analysis — Organizational process monitoring is largely digital and analyzable

Train other examiners in the financial examination process.

interpersonal — Job-skill training content AI-assisted; coaching human

Establish guidelines for procedures and policies that comply with new and revised regulations and direct their implementation.

decision support — AI drafts guidelines; authority and context are human

Review and analyze new, proposed, or revised laws, regulations, policies, and procedures to interpret their meaning and determine their impact.

information retrieval — Law-to-activity mapping; human owns compliance

Provide regulatory compliance training to employees.

text generation — Procedural training content AI-assisted; delivery human

Evaluate data processing applications for institutions under examination to develop recommendations for coordinating existing systems with examination procedures.

data analysis — Analyzes records and processes; human confirms conclusions

Review applications for mergers, acquisitions, establishment of new institutions, acceptance in Federal Reserve System, or registration of securities sales to determine their public interest value and conformance to regulations, and recommend acceptance or rejection.

decision support — Screens applications against criteria; human owns approval

Verify and inspect cash reserves, assigned collateral, and bank-owned securities to check internal control procedures.

data analysis — Financial accuracy checks, human reviews exceptions

Confer with officials of real estate, securities, or financial institution industries to exchange views and discuss issues or pending cases.

decision support — Financial conferral aided; judgment and trust human