FIVE YEAR
STRATEGIC PLAN
FY 2015-FY 2019
Arizona Department
of Financial Institutions

Lauren W. Kingry
Superintendent
Arizona Department of Financial Institutions

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Table of Contents
Mission Statement ................................................................................................................................. 3
Agency Description ............................................................................................................................... 3
Strategic Issues and Strategies .............................................................................................................3
Issue #1 Modernize the Agency’s Information Technology System .............................................3
Issue #2 Meeting the Requirements to Conduct Statutory Examinations ...................................3
Issue #3 Retaining, Attracting, and Educating Key Agency Personnel ....................................... 4
Resources and Assumptions .................................................................................................................4

Arizona Department of Financial Institutions

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MISSION STATEMENT:
To license, examine, and supervise Financial Institutions, in compliance with State law, to ensure safety
for the Arizona consumer and soundness for the Arizona business.
AGENCY DESCRIPTION:
The Department of Financial Institutions (“DFI”) licenses, supervises, and regulates state chartered
financial institutions and enterprises to ensure the safety and soundness of these financial entities, and
verify compliance with state and federal laws. DFI also serves Arizona citizens by investigating
complaints that are filed by consumers against licensed individuals and entities and applies appropriate
remedial action when the violations are substantiated.
STRATEGIC ISSUES & STRATEGIES:
ISSUE #1:
Modernize the Agency’s Information Technology system for efficiency, accuracy, and
while providing the confidentiality required in the Financial Industry.
Description: The Agency is currently dependent on a database that has been in use since 1996. The
system is slow, antiquated and generally behind the technology used by all licensed industries for DFI.
Licensing records are maintained in a hard copy format. Due to the system weaknesses, current work
practices involve many undocumented “shadow” systems for tracking work items and creating reports.
The current system does not support efficient processes or allow for web based applications.
Strategies:

1.1
1.2
1.3
1.4

Document, standardize, and streamline work processes throughout the Agency
Purchase and implement an information management system.
Implement an e-Licensing system
Implement web based services where applicable

ISSUE #2:
Meeting the requirements to conduct statutory examinations of Banks, Credit
Unions, and Non-Depository Licensees.
Description: The Department continues to face appropriated funding shortfalls, based on the resources
required to perform the number of examinations and other regulatory activities required by Arizona
statutes. DFI’s revenue streams come exclusively from Arizona financial industry sources (i.e., licensing,
examination, and annual assessments). The revenue generated from banks, credit unions, and licensees'
fees and assessments should be used to underwrite the Department's operations. The intensifying
complexities of the licensed industries and the increasing number of licensees have significantly outpaced funds provided to DFI for coverage of required examinations.
Strategies:

2.1
2.2
2.3

The Agency will continue to pursue the self-funding structure to provide a better
resource allocation structure.
Continue to establish efficiencies and conduct limited scope or electronic
examinations to the extent possible.
Continue to supplement the examiner staff, by utilizing qualified contractors to
augment examination teams.

Arizona Department of Financial Institutions

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ISSUE #3:

Retaining, attracting, and educating key Agency personnel.

Description: The Agency has been unsuccessful in its past efforts to obtain additional funding to
provide examiners and other key personnel, promotional opportunities and more competitive salaries. In
addition, although ongoing professional development is necessary for DFI staff to support the financial
industry, lack of funding for affordable training has prevented DFI staff from timely and effective training
programs to advance their knowledge base and career path. Examiner turnover causes inefficiencies and
can reduce DFI effectiveness, but experienced examiners are easily recruited elsewhere with higher
salaries. Retention of trained and experienced examiners is essential to the overall effectiveness of the
Department's examination and supervisory responsibilities. With properly trained personnel, efficiencies
can be met, employee satisfaction improves, and attracting replacement staff is more successful.
Strategies:

3.1
3.2
3.3
3.4

The Agency will seek funding for all promotional opportunities when earned.
Provide tiered career laddering in all departments within the Agency.
Pursue all appropriate training strategies within budget confines.
Develop and implement all aspects of the Performance Management and
Compensation Pay Systems.

RESOURCE ASSUMPTIONS:
Resource Assumptions - Agency Level (In Thousands)

FTE Positions
General Fund
Other Appropriated
Funds
Non-Appropriated
Funds
Federal Funds
Total Agency Funds

FY 2015
Appropriation

FY 2016
Budget
Request

FY 2017
Estimate

FY 2018
Estimate

FY 2019
Estimate

60.1

60.7

64.7

68.7

72.7

3,020.2

3,982.5

4,132.5

4,282.5

4,432.5

1,247.4

1,213.1

1,363.1

1,513.1

1,663.1

2,000.3
-06,267.9

1,126.3
-06,321.9

1,086.3
-06,581.9

1,086.3
-06,881.9

1,086.3
-07,181.9

Arizona Department of Financial Institutions

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