Electronic Payments

Subscribe to Electronic Payments

Weekly Fintech Focus

  • A buy-now pay-later company faces a potential class action alleging it hid the risk of overdraft and NSF fees from its users.
  • Leaders of the CFPB’s Fair Lending Office published an article encouraging the use of special purpose credit programs to effect racial justice.
  • The FDIC is opening applications for a tech sprint to reach the unbanked.
  • The FSB responds to comments on its recent discussion paper related to outsourcing and third-party service providers.

…
Continue Reading Fintech Week in Review: Week of June 25, 2021

Weekly Fintech Focus

  • Federal financial regulators extend the deadline for responding to its request for information about financial institutions’ use of AI.
  • The CFPB issued FAQs on electronic funds transfers under EFTA and Regulation E to address issues related to fraud and private network rules.
  • The Federal Reserve proposed a rule to update the Durbin Amendment/Reg. II to ensure two debit networks are available, including for card-not-present transactions.
  • The Federal Reserve proposed a rule to apply Regulation J to FedNow transactions and to establish rules for the FedNow Service.
  • CSBS seeks comment on its proposed nationwide licensing framework for MSBs.

…
Continue Reading Fintech Week in Review: Week of June 11, 2021

Weekly Fintech Focus

  • FDIC discusses its fair lending activities in the most recent edition of its Consumer Compliance Supervisory Highlights.
  • US and EU engage in a joint regulatory forum to discuss international coordination on financial regulation and operational resiliency.
  • BCBS publishes its principles for operational resilience for banks, including a focus on third-party outsourcing relationships with financial technology companies.
  • Financial regulators seek comment on model risk management guidance.
  • CSBS seeks comment on a revamp of the nationwide licensing system.

…
Continue Reading Fintech Week in Review: Week of April 16, 2021

Weekly Fintech Focus

  • In response to pandemic challenges, card networks agree to delay merchant fee hikes that would have taken place next month.
  • E-commerce activities continue to grow and are projected to reach $1 trillion in revenue by next year.
  • The BIS publishes a paper urging a global rethink on how to regulate big tech companies engaged in financial services to address systemic risk.
  • Fintech trade groups launch to address issues like financial inclusion and regulatory approaches to fintech engagement in the financial services industry.
  • Regulators issue the first enforcement action directly referencing a bank’s role in serving marijuana-related business customers.

…
Continue Reading Fintech Week in Review: Week of March 19, 2021

Weekly Fintech Focus

  • The UK published a report calling for the urgent regulation of BNPL products.
  • The OCC postponed publication of the Fair Access to Financial Services rule.
  • The Acting Director of the CFPB is putting a renewed emphasis on issues of racial equity with a push to enforce fair lending violations.
  • The new administration will take a fresh look at the recently finalized FHA disparate impact rule.
  • The Federal Reserve announced that its FedNow RTP service will be launched sooner than expected.

…
Continue Reading Fintech Week in Review: Week of February 5, 2021

Weekly Fintech Focus

  • FDIC issues an updated brokered deposit rule, creating new exceptions relevant to fintechs working with bank partners.
  • FDIC issues a final rule clarifying its expectations for ILC charter applications.
  • CFPB issues an advisory opinion on Special Purpose Credit Programs to clarify how creditors can offer these programs to disadvantaged groups.
  • CFPB grants access to its compliance assistance sandbox to an earned wage access company, which meets the CFPB’s recent guidance on such programs.
  • PayPal wins the first round in its efforts to throw out aspects of the CFPB’s prepaid rule, resulting in a court throwing out certain mandatory disclosures and the 30-day waiting period for digital wallets.
  • New York enacts second-in-nation law requiring disclosures for commercial purpose loans.
  • The CSBS goes to court again to stop the OCC from issuing a charter to a fintech company.

…
Continue Reading Fintech Week in Review: Week of January 8, 2021

Weekly Fintech Focus

  • House Financial Services Committee sets priorities it hopes the incoming Biden administration will enact.
  • First major bank prohibits use of its credit cards for buy-now-pay-later transactions.
  • CFPB issues another no action letter for unsecured, closed-end installment lending model with AI underwriting.

…
Continue Reading Fintech Week in Review: Week of December 11, 2020

Weekly Fintech Focus

  • FTC files suit against a mobile app that advertised high-interest deposit accounts and easy access to customer funds but failed to deliver.
  • OCC proposes rule to ensure fair access to financial services and to codify the reversal of policies imposed under Operation Choke Point.
  • CFPB issues an advisory opinion clarifying that certain earned wage access services are not credit under Regulation Z.

…
Continue Reading Fintech Week in Review: Week of December 4, 2020

Weekly Fintech Focus

  • The CFPB issues an ANPR to engage in a rulemaking process on consumer access to financial records under Section 1033 of Dodd-Frank.
  • NYDFS expects regulated financial institutions to assess climate change risks.
  • Federal banking regulators look to codify that supervisory guidance is not binding.
  • The OCC issues its “true lender” final rule.
  • The effective date of the recent HUD disparate impact rule is enjoined by district court.
  • Senate Democrats introduce a bill to prohibit discrimination under the Civil Rights Act of 1964 for banks and other financial institutions.
  • Quarles discusses the FSB’s growing concern with nonbanks in light of their interconnectedness with the financial system and vulnerabilities manifested during the pandemic.
  • The FDIC finds a shrinking unbanked population and encourages further innovation in banking technologies to create a more inclusive banking system.
  • Digital bank, its API provider, and its licensed bank settles claims related to system service outage.
  • SoFi obtains conditional approval for its national bank charter.

…
Continue Reading Fintech Week in Review: Week of October 23 and October 30, 2020

Weekly Fintech Focus

  • OCC releases Interpretative Letter that clarifies national banks’ and federal saving associations’ ability to hold certain stablecoins as reserves in a hosted wallet.
  • California DBO awards grants for financial education and empowerment programs.

…
Continue Reading Fintech Week in Review: Week of September 25, 2020