Alliance for Innovative Regulation Institute

What it reported doing in 2024

Federal housing finance agency (fhfa) - we received a contract from partnered with the fhfa's office of financial technology ("oft") to plan, and execute, and host a techsprint focused on how the responsible use of generative artificial intelligence ("genai") can promote a better transparent, fair, and inclusive housing finance system, while fostering sustainable homeownership and rental opportunities. Bank fintech arrangements - we partnered with the american fintech council to deliver a miniature techsprint focused on bank/fintech arrangements and what is at stake if they don't address regulator concerns. Specifically, the sprint addressed how regulators might gain more visibility into and thereby knowledge of fintech's technologies, business activities, banking relationships, and risk profile so that all parties can be informed about potential risks to the banking system and financial consumers. Over one and a half days teams formed to identify solutions to address the challenges with bank/fintech arrangements. As a follow-up to the mini techsprint with the afc, the air team held a longer techsprint and demonstration day in february 2025. The techsprint focused on exploring key challenges facing the industry in the ever-changing technology and regulatory landscape. The techsprint explored regulatory issues relating to the evolving business models between banks and fintech firms, with a focus on the impact to community banks. Digital identity - air launched an initiative focused on exploring the potential that robust digital identity systems can advance critical goals in financial services, particularly in expanding financial inclusion, protecting privacy, and combating money laundering and other financial crimes. Air, in partnership with the aspen institute financial security program, led a series of online and in-person roundtables focused on addressing the barriers to widespread digital id adoption. Additionally, this project sought to understand the breadth and depth of work underway on digital identity and thus provided valuable insights into the global efforts and diverse approaches being employed in this evolving field. Through engaging with smes and conducting research, we engaged with an international community dedicated to addressing multiple use cases for digital identity. Global fraud program - in q4 2024 we launched the global fraud program under our financial crime strategic initiative. The program has 4 key pillars - network defense, consumer defense, aml/bsa and incubator/accelerator. In q2 2025, we will launch our first set of activities. The project will include a simulation event called 'battlefront: fraud in the age of ai'. Battlefront will be a two-day event designed to bring together diverse stakeholders to explore and tackle fraud and financial scams in a practical and collaborative way. The event will provide a space to explore and test innovative technologies and strategies for fraud detection and prevention, focusing on real-world challenges and emerging threats. The marketing initiatives for the battlefront event will focus on raising awareness, driving participation, enhancing engagement and positioning air as a thought leader. Key marketing strategies will include but not limited to ai generated video content, social media and digital engagement, targeted email outreach, thought leadership & event position, and mediate and partner collaboration leverage industry networks for promotion.public policy education- air continues to raise awareness related to technology developments impacting consumer finance, such as the availability of vastly expanded digital data and the emergence of increasingly powerful artificial intelligence tools like machine learning and generative ai. The goal of the ongoing initiative is to educate and engage u.s. Policymakers regarding the need for regulator modernization and to position air as a trusted bipartisan source of expertise and insight on matters related to financ

Financial Efficiency

• Mission deployment rate: 76.4%; rating input score 76
• Program expense ratio: 65.3%; rating input score 65
• Fundraising efficiency: $12.16 raised per $1 spent on fundraising; rating input score 44; 44th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 2 of 6 controls in place; rating input score 33
  • Compensation committee: Missing
  • Independent consultant: Pass
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Pass
• Foreign activity oversight: Scored; rating input score 0
• Grant itemization coverage: Scored; rating input score 0
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 83.3%; rating input score 83; 16th percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -17%; rating input score 8; 8th percentile among comparable filings
• Total-asset coverage ratio: 0.12; rating input score 3; 3rd percentile among comparable filings
• Liabilities to assets ratio: 0.74; rating input score 12; 12th percentile among comparable filings
• Officer compensation ratio: 25.4%; rating input score 8; 8th percentile among comparable filings

Growth

• Program expense growth: 41% per year; rating input score 100; 96th percentile among comparable filings
• Revenue growth: 32.4% per year; rating input score 100; 95th percentile among comparable filings
• Asset growth: 29% per year; rating input score 100; 92nd percentile among comparable filings