U.S. MSB Daily News
USMSB.com – The Conference of State Bank Supervisors (CSBS) is taking a hammer to the creaky, quarterly bank reporting cycle — and five technology firms just landed front-row seats to the overhaul.
CSBS announced it has selected Lumio, HarmonyTech Inc., Regnology, ICF, and Curinos to build and prototype new tools aimed at making bank financial data reporting more granular, more timely, and a lot less painful than today’s legacy process.
“These tools aren’t just about prettier dashboards,” said CSBS President and CEO Brandon Milhorn, who framed the effort as a fundamental shift in how states examine banks and spot trouble in the financial system. By pushing tech directly into supervisory workflows, CSBS hopes to sharpen risk detection and cut compliance costs for institutions.
From 19 Contenders to 5: The Catalyst Shortlist
The five winners emerged from a 19-company field in CSBS’s Bank Financial Data Innovation Challenge, part of its broader Catalyst Initiative, a program designed to recruit private-sector innovators to help solve the hardest problems facing state regulators.
Each team will now:
- Prototype and test their concepts in real supervisory environments
- Work alongside state examiners and banks to validate real-world usability
- Compete for a potential pilot program with at least one state financial regulatory agency
Translation for MSBs and banks: this is not a whiteboard exercise — these tools are being built with live fire.
Why This Matters for Banks and MSBs
State regulators, coordinated through CSBS, oversee roughly three-quarters of all U.S. banks and a wide range of non-depository financial services, including many players operating as money services businesses (MSBs). CSBS also runs the Nationwide Multistate Licensing System (NMLS), the backbone licensing platform for mortgage companies, money transmitters, consumer lenders, and debt collectors.
Modernizing bank financial data reporting has big implications:
- Faster regulatory visibility: More frequent, standardized data could let supervisors catch liquidity and compliance problems long before a quarterly call report hits the screen.
- Lower compliance drag: If the prototypes work as promised, banks and MSBs could spend less time reformatting data and more time managing risk.
- Better alignment with fintech realities: As payments, remittances, and digital money services move faster, regulators are under pressure to move faster too.
For MSB professionals, this challenge signals where things are heading: continuous, data-driven supervision, where regulators pull what they need from standardized data pipes instead of demanding bespoke reports at fixed intervals.
Catalyst Initiative: Regulatory Lab, Not Museum
The Catalyst Initiative is CSBS’s innovation sandbox — but with a clear supervisory edge. Rather than traditional procurement, Catalyst invites specialist tech firms to:
- Co-design tools with regulators and supervised institutions
- Test in live or near-live supervisory environments
- Scale what works across multiple states
In recent discussions, Milhorn has highlighted data modernization and real-time risk visibility as top priorities for the next chapter of supervisory tech — especially as AI, automation, and shared data standards reshape how regulators and industry collaborate.
What’s Next
Over the coming months, Lumio, HarmonyTech, Regnology, ICF, and Curinos will demo their prototypes to CSBS and a panel of state supervisors. The “most compelling” solutions will be tapped for state-level pilots, putting them one step closer to broader adoption across the U.S. bank and MSB oversight ecosystem.
For readers of U.S. MSB Daily News, this announcement is a clear signal:
- Data expectations are going up — in speed, standardization, and depth.
- Regtech is no longer optional for institutions that want to keep pace with evolving state supervision.
- The next wave of rules, exams, and enforcement will likely be riding on these new data rails.
We’ll be tracking which tools make it into pilot programs — and what that means for money services businesses, compliance officers, and product teams navigating the next generation of state-level oversight.
U.S. MSB Daily News
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