Financial institutions are looking to risk mitigation and regulatory compliance technology following the industry turbulence brought on by the recent collapses of Silicon Valley Bank, Signature Bank and First Republic Bank.

The events of the past two months have banks asking, “What do they have in place to, one, protect themselves but also earn the trust of their customers back?” Tracy Moore, director of strategy, Americas at software-as-a-service (SaaS) solution Fenergo, told Bank Automation News.

Fenergo clients, including PNC, Truist and Commonwealth Bank, are looking to Fenergo for risk and compliance monitoring, Moore said. Bank clients are looking at who they are banking with — and banks are finding that it’s critical to show clients their compliance programs and the guardrails they have in place to protect consumer assets.

The solution, which allows banks to automate know your customer (KYC) and anti-money laundering (AML) programs, allows constant risk monitoring rather than just annual reviews of client risk ratings, Moore said. The tech provider has noted an increase in its client base since SVB and Signature failed in March.

San Juan, Puerto Rico-based FV Bank is another FI looking to technology for risk and compliance monitoring, Chief Risk Officer and Deputy Chief Compliance Officer Luz Mabel del Valle at the bank told BAN, without disclosing its provider.

The bank uses several tech providers for risk monitoring services, Mabel del Valle said. From virtual onboarding and automated fraud flagging, the bank does not have a one-size-fits-all approach to technology.

“We are using high technology in order to mitigate and in order to provide our staff with better tools to be able to acquire a more robust client base,” she said. “We assure our clients that we meet all the capital regulation requirements. … And we spice it up with technology.”