The COVID-19 pandemic and resulting economic effects have accelerated the speed of change in the financial services industry. The need for optimization and acceleration of digital adoption requires urgency and more than just an organic approach to growth and innovation.

To succeed in the current environment, financial institutions, fintech companies, and technology companies must coevolve.

Weekly Fintech Focus

  • The CFPB orders a bank to pay over $100 million to resolve a pattern of violations of EFTA, UDAAP, and FCRA related to the bank’s overdraft services.
  • The CFPB issues an RFI seeking information about the effect of the CARD Act on small entities.
  • FinCEN provides clarification about bank customer due diligence flexibility for onboarding and servicing PEP customers.
  • The CFPB is still on track to issue its small business data rule outline of proposals in September.
  • The OCC clarifies how credit card issuers choose which state’s interest rate can be used with its credit cards based on where the bank makes the loan.


Continue Reading Fintech Week in Review: Week of August 28, 2020

Weekly Fintech Focus

  • The FTC issues a staff perspective summary of video game loot boxes and microtransactions.
  • FinCEN releases a statement on its approach to compliance and enforcement actions for violations to the BSA.
  • CFPB extends comment period for RFI on credit discrimination to December 1, 2020.


Continue Reading Fintech Week in Review: Week of August 21st, 2020

Weekly Fintech Focus

  • Federal banking agencies issue joint statement on enforcement of the BSA.
  • The California DBO issued an interpretive opinion declaring a payment processing arrangement not to be exempt under California’s agent-of-the-payee exemption for pay-in and pay-out transactions for online gambling.
  • The California DBO issued an interpretive opinion that maintains its position that cryptocurrency is not money under the Money Transmission Act, but certain crypto-activities could trigger the state’s escrow law.
  • The Federal Reserve discusses its efforts at developing and experimenting with a digital dollar and distributed ledger technology.


Continue Reading Fintech Week in Review: Week of August 14th, 2020

Weekly Fintech Focus

  • The Federal Reserve is quickly moving up its timeline for the launch of its real-time payment service.
  • FinCEN issues new FAQs to clarify that covered financial institutions have flexibility and discretion in how they conduct customer due diligence and update information about their customers.
  • FFIEC issues a statement on COVID-19 loan accommodations.
  • CFPB complaints on payments increase during the pandemic.
  • FDIC Final Rule allows for greater employment of those with minor criminal offenses.


Continue Reading Fintech Week in Review: Week of August 7th, 2020

Weekly Fintech Focus

  • Bank and credit union industry groups come out against the Fintech Charter, while Comptroller Brooks pushes forward.
  • The CFPB plans on issuing a proposed rule to address consumer-authorized access to financial records and data aggregation.
  • The CFPB issues an RFI in an effort to expand access to credit and prevent discrimination.
  • FinCEN issues an advisory alerting financial institutions to patterns of COVID-19-related cybercrime.
  • Three states sue the OCC over its recent valid-when-made rule.
  • New York is on the verge of becoming the second state to require TILA-like disclosures for commercial financing.


Continue Reading Fintech Week in Review: Week of July 31st, 2020

Weekly Fintech Focus

  • FDIC seeks input on new technology certification program.
  • CFPB takes action to help employers develop emergency savings programs to boost worker financial resilience.
  • The OCC seeks comments on its proposed True Lender rule.
  • New York proposes amendments to its gift card regulations that would prohibit or limit fees and expirations in addition to providing for a new cash-back redemption right.


Continue Reading Fintech Week in Review: Week of July 24th, 2020

Weekly Fintech Focus

  • The CFPB issued a blog post on AI/ML credit underwriting models and adverse action notices to encourage the industry to engage with the CFPB on these innovations.
  • FinCEN issued an advisory on FATF jurisdictions of concern for financial institution monitoring purposes.
  • California tables proposal to create state version of the CFPB.
  • Instagram launches Instagram Shop in the U.S.


Continue Reading Fintech Week in Review: Week of July 17th, 2020

Weekly Fintech Focus

  • The Supreme Court holds that the CFPB director is removable by the president at will, setting up potential challenges to the CFPB’s prior enforcement actions and rulemakings.
  • The CFPB finalizes the Payday Lending Rule and removes a lender’s requirement to conduct an ability-to-repay analysis.
  • The FDIC follows the OCC in codifying the valid-when-made rule.
  • The OCC issues an interpretive letter to clarify that national banks do not need state money transmission licenses.
  • The Senate Banking Committee discusses CBDCs and other developments in the digitization of money and payments.
  • OCC: Banks face higher compliance risks due to pandemic.
  • FinCEN issues advisory on scams and money mule schemes related to COVID-19.
  • Venmo pilots business payments for micro SMBs.
  • SoFi applies for national bank charter with the OCC.


Continue Reading Fintech Week in Review: Week of July 3rd and July 10th, 2020

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