1. Division of Financial Institutions Iris Ikeda Commissioner of Financial Institutions Department of Commerce and Consumer Affairs February 2016

2. Agenda Who are we? What we do? Why we do what we do? Trends in the industry. 2

3. Who are we? 3

4. 4 Commissioner Deputy Commissioner Licensing Branch MLO, MLOC, & MS Banks, ED, & MT Field Exam Branch MLOC, MS, & ED Banks & MTResearch StaffAdmin Staff

5. What do we do? Protect. Regulate. Inform DFI ensures the safety and soundness of state-chartered and state- licensed financial institutions, and ensures regulatory compliance by state-licensed financial institutions, escrow depositories, money transmitters, mortgage servicers, mortgage loan originators and mortgage loan originator companies, by fairly administering applicable statutes and rules, in order to protect the rights and funds of depositors, borrowers, consumers and other members of the public. 5

6. What do we do? Protect. Provide the legal structure. State and federal laws Model laws through CSBS Conduct examinations on all our licensees. Banks – conduct jointly with FDIC and FRB MT, ED, MLOC, MS – conduct independently or with other states Recommend enhancements to licensee operations. Examination focus Safe and sound operations of the licensee Compliance with federal and state laws and regulations Information security 6

7. What do we do? Regulate. Provide ongoing supervision through the licensing branch Review applications New companies Mergers Acquisitions Change in Control Branch locations (banks, ED, MT, MLOC, MS) New branches Delegates (MT) list Investigate consumer complaints 7

8. What do we do? Inform. Provide training for licensees Provide information to consumers Provide outreach sessions to the community. 8

9. Why we do what we do? Protect Consumers Inform licensees of the laws and their responsibilities under the state and federal laws and regulations. Provide best practices so companies can improve operations. Coordinate and share information with other states to improve the financial system nationwide. 9

10. Trends in the Industry Use of software Internet Applications Mobile devices Information security Hacking Security incidents Skimming Hostage 10

11. Trends in the Industry Medical Marijuana and Banking DOJ Cole memorandums FinCEN guidance FDIC guidance HSBA presentation on DFI website 11

12. Contact Information Iris Ikeda Commissioner Division of Financial Institutions Department of Commerce and Consumer Affairs 335 Merchant Street #221 Honolulu, HI 96813 808.586.2820 dfi@dcca.Hawaii.gov http://cca.hawaii.gov/dfi/ Twitter: @Hawaii DFI 12