Weekly Fintech Focus

  • Bank examiners adopt supervisory guidance to reflect pandemic challenges.
  • Senators seek answers about stimulus payment debit card problems.
  • FIs should focus on their business continuity plans during pandemic.
  • The Fed limits bank payouts and suspends share buybacks for large banks as a result of the Dodd-Frank Act stress test for 2020.

Continue Reading Fintech Week in Review: Week of June 26, 2020

Weekly Fintech Focus

  • The CFPB issues a statement providing flexibility to credit card issuers as they obtain consent from customers to receive disclosures electronically under Regulation Z and the E-Sign Act.
  • The OCC announces a new acting Comptroller and includes FinTech Charters among its focuses
  • The OCC issues a rulemaking on digital banking transformation, seeking comment on the ways its regulations should change in response to advances in technology and market trends.
  • The House Financial Services Committee holds a hearing on the digital dollar and its place in making stimulus payments.
  • SEC’s FinHub to host virtual meet-ups.
  • Amazon and Goldman Sachs introduce new credit line for U.S.-based merchants.
  • FBI issues warning to mobile banking app users.

Continue Reading Fintech Week in Review: Week of June 12, 2020

This blog post will briefly explore operational, strategic, and regulatory considerations related to the use of financial technologies by financial institutions in the COVID-19 era.

We specifically view these considerations through the lens of two nearly contemporaneous events from earlier today:

  1. Our law firm’s publication of a Client Update, authored by Youssef Sneifer, regarding the movement of the financial services industry from digital transformation to digital optimization and acceleration, as a result of changes brought about by the COVID-19 pandemic; and
  2. The issuance of COVID-19 supervisory guidance from federal and state regulatory agencies to financial institution examiners regarding, in pertinent part, the manner in which the use and deployment of technology should impact a financial institution’s supervisory rating.

Continue Reading The Impact of COVID-19 on the Use of FinTech by Financial Institutions

Weekly Fintech Focus

  • The FFIEC issues a statement promoting financial inclusion and addressing racism and discrimination within financial services.
  • The OCC issues a final rule codifying the valid-when-made rule.
  • The CFPB issues FAQs about remittance transfer timeliness impacted by foreign government closures of nonessential businesses in response to COVID-19.
  • The NY DFS and the French bank regulator enter an MoU to collaborate on fintech issues.
  • FDIC extends comment period for proposed rule relating to approval of ILC deposit insurance applications.
  • Cardholders propose class action of autopay options.
  • The European securities regulator publishes a consultation paper on guidelines for cloud services provider outsourcing arrangements.

Continue Reading Fintech Week in Review: Week of June 5, 2020

Weekly Fintech Focus

  • Google and HUD announce work to improve Google’s Advertising Policy.
  • Colorado does not extend usury law preemption to non-banks.
  • CFPB announces advisory opinion pilot program.
  • The CFPB issued an FAQ on credit reporting protections under the CARES Act.
  • The OCC is considering a “True Lender” rule clarification.
  • New Mexico prohibits writs of garnishment and writs of execution as they pertain to consumer debt.

Continue Reading Fintech Week in Review: Week of June 19, 2020

A new update published by Perkins Coie’s Investment Management practice, reviews a summary report, issued on June 10, 2020, by the Financial Industry Regulatory Authority (FINRA), regarding the existing and emerging uses of artificial intelligence by securities industry market participants. The report, Artificial Intelligence (AI) in the Securities Industry, reflects nearly two years’ worth of dialogue between FINRA’s Office of Financial Innovation and over two dozen market participants, including broker-dealers, academics, technology vendors, and service providers. FINRA requested input from the securities industry regarding potential challenges associated with broker-dealers using and supervising AI applications.

FINRA is currently requesting comments, due August 31, 2020, from market participants regarding all areas identified in the report and outlined in this update. A specific request was made for comments about how FINRA can develop rules that support the adoption of AI applications in the securities industry in a manner that does not compromise investor protection and market integrity.

Click here to read the update.

Weekly Fintech Focus

  • The current pandemic creates new stresses on the relationship between payment processors and merchants, but there are ways to work through these challenges together. See here for our discussion reserve account issues in credit card processing agreements.
  • FinCEN seeks comment on the burden financial institutions face when filing SARs.
  • The CFPB files its first status report on its progress on rulemaking regarding the small business loan data rule.
  • The CFPB issued a report on the consumer complaints it received during COVID-19.
  • Marqeta raises $150 million with a $4.3 billion valuation.
  • New mobile banking registrations in April surge 200%.

Continue Reading Fintech Week in Review: Week of May 29, 2020

The current economic slowdown can affect credit card processing agreements between companies and payment processors. It is an issue relevant to all companies that accept or process credit cards as a method of payment. The following update analyzes financial risks that companies (merchants) and payment processors face under their processing agreements during a slowdown, and it proposes certain proactive steps companies and processors can take to manage their respective risks, while maintaining a positive long-term relationship with one another. Click here to read more.

Weekly Fintech Focus

  • Bank regulators issue long-awaited guidance on offering small-dollar, short-term loans.
  • CFPB issues small-dollar lending no-action letter template.
  • CFPB provides guidance to people receiving pandemic relief on prepaid cards.
  • FinCEN issues guidance on COVID-19-related financial crimes.
  • Plaid announces the launch of a bank API development program to give banks, especially small banks, control over account data sharing with fintechs.
  • Libra Association hires former FinCEN director to be its general counsel.
  • FIS survey documents change in consumer banking behaviors from COVID-19.
  • Cashwire and Workday team up for automatic wire transfers.

Continue Reading Fintech Week in Review: Week of May 22, 2020

Weekly Fintech Focus

  • House Democrats latest relief bill includes protections for financial institutions working with marijuana-related businesses.
  • The CFPB issues guidance providing flexibility for financial institutions dealing with billing error disputes and making changes to consumer accounts to respond to the challenges of the COVID-19 pandemic.
  • The CFPB amends the Remittance Transfer Rule to permanently allow estimates of exchange rates and third-party fees.
  • FinCEN is seeking comments about the burden of collecting, filing, and maintaining CTRs.
  • U.S. credit card spending falls 40% in March and early April.
  • Contactless payments are more likely to be used.

Continue Reading Fintech Week in Review: Week of May 15, 2020