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

Weekly Fintech Focus

  • The CFPB emphasizes flexibility under ECOA for using AI models to make credit decisions.
  • The CFPB issues FAQs to clarify aspects of a creditor’s responsibility to provide adverse action notices to PPP loan applicants.
  • FATF provides recommendations for countries dealing with new money laundering risks as a result of COVID-19.
  • CFPB report shows substantial decline in monthly consumer credit applications.
  • Visa leads latest investment in Nium.
  • Visa’s Fast Track Program is growing.
  • Shopify and Pinterest launch new channel.


Continue Reading Fintech Week in Review: Week of May 8, 2020

Weekly Fintech Focus

  • The FFIEC issued new guidance to financial institutions with recommendations for effective risk management strategies when using cloud computing services.
  • The GAO is encouraging bank regulators to continue focusing on addressing important fintech issues, including issuing guidance about data aggregation, alternative data use, and de-risking.
  • CFPB announces new interactive database for consumer complaints.
  • Treasury partners with payments companies to deliver COVID-19 relief funds on prepaid debit cards.
  • Galileo pairs up with Klar and becomes first API software integrator to achieve Mastercard certification.


Continue Reading Fintech Week in Review: Week of May 1, 2020

Weekly Fintech Focus

  • FFIEC updates the BSA/AML Examination Manual.
  • FFIEC releases APR and APY computational tools.
  • State AGs request CFPB Director to withdraw COVID‑19 credit reporting guidance.
  • RevenueWire settles FTC charges for $6.75 million.
  • Delaware check seller and money transmitter license required to transition to NMLS.
  • SBA releases PPP Loan FAQ for borrowers and lenders.
  • The Fed removes savings deposit account withdrawal restrictions.


Continue Reading Fintech Week in Review: Week of April 24, 2020

Weekly Fintech Focus

  • The CFPB intends to provide flexibility in its supervisory and enforcement activities related to parts of the Remittance Transfer Rule in response to COVID‑19.
  • The CFPB provides an interpretive rule that paves the way for the government to distribute impact relief payments via prepaid card.
  • The FTC publishes a blog post on consumer protection issues related to AI models and algorithms, reiterating the FTC’s focus on fairness and explainability.
  • FinCEN re-publishes a FAQ for customer due diligence for PPP loans.
  • Fintech lenders approved to provide PPP loans.
  • S. warns of North Korea cyber threat to financial industry.
  • Stripe raises $600 million at a valuation of $36 billion.


Continue Reading Fintech Week in Review: Week of April 17, 2020

Weekly Fintech Focus

  • BIS provides additional guidance to central banks to encourage flexibility in responding to COVID‑19 challenges.
  • SoFi buys Galileo for $1.2 billion.
  • Visa and Fold co-brand a debit card that offers Bitcoin rewards.
  • Card networks are delaying planned interchange fee changes in light of COVID‑19 challenges.
  • Sweden joins the ECB instant payments platform.


Continue Reading Fintech Week in Review: Week of April 10, 2020

Weekly Fintech Focus

  • The CARES Act rollout provides numerous avenues of financial relief through injections of liquidity and new lending opportunities.
  • The CFPB Taskforce on Federal Consumer Financial Law seeks comments on many aspects of consumer financial law and protection, including a focus on fintech solutions.
  • The BIS issues a publication outlining the challenges of cash payments in the age of coronavirus.
  • Microsoft and Plaid announce a new personal finance function through Excel that leverages Plaid’s integration with financial accounts.
  • FinCEN provides financial institutions with more information in response to COVID‑19.


Continue Reading Fintech Week in Review: Week of April 3, 2020

Weekly Fintech Focus

  • Federal financial regulators for banks and non-banks reduce supervisory burdens and encourage covered entities to work with consumers that are affected by COVID-19
  • Regulators encourage contactless payment innovations to work towards sanitary payments in stores.
  • FinCEN issues an advisory on FATF-identified jurisdictions with AML/CFT deficiencies.
  • Goldman Sachs and Morgan Stanley are approved for majority stakes in China ventures.
  • Russian Prime Minister introduces a bill to allow fintech sandboxes.


Continue Reading Fintech Week in Review: Week of March 27, 2020

Weekly Fintech Focus

  • The FFIEC updates its guidance on pandemic planning in response to COVID-19, and many other financial regulators issue similar guidance.
  • The California DBO issues a proposed rule to clarify its broad agent of the payee exemption.
  • The UK launches a consultation on auditing AI systems for compliance and fairness.


Continue Reading Fintech Week in Review: Week of March 13, 2020

FDIC Settles Payday Lending Lawsuit and Issues Summarizing Policy Statement

On May 22, the Federal Deposit Insurance Corporation (“FDIC”) announced that it had resolved the litigation of Advance America et al. v. FDIC et al. in the U.S. District Court for the District of Columbia.  In that case, the plaintiffs alleged that the FDIC and the Office of the Comptroller of the Currency overstepped their regulatory authority in connection with a 2013 initiative by the U.S. Department of Justice known as “Operation Choke Point.”  Under Operation Choke Point, federal regulators investigated banks servicing targeted business sectors, including payday lending.  Advance America Cash Advance and its co-plaintiffs asserted that FDIC officials acted to cut off payday lending businesses’ access to U.S. banks and financial services.
Continue Reading Fintech Week in Review: Week of May 24, 2019