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

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