Insights on Business

MARCH 5, 2019

Reducing costs but appeasing regulators seems like an oxymoron, yet, many AML compliance and operations leaders are being asked to do just that. The question is, how to do this, while keeping the regulators happy? Even better, regulators have recently begun encouraging the application of these techniques.

Regulation 70

Regulation Compliance Analysis Innovation 70

PYMNTS

DECEMBER 14, 2018

News came earlier in the month that several federal agencies have come out — together — in support of banks embracing innovation in their compliance efforts. Thus, said the agencies, banks should eye technology, and should endeavor to “consider, evaluate, and where appropriate, responsibly implement innovative approaches in this area.”

Compliance 148

Compliance Innovation FDIC Examples 148

CFPB Monitor

MARCH 15, 2022

The OCC’s attempt to provide a clear bright line test for determining when a bank is the “true lender” in a bank-model program through a regulation was overturned by Congress under the Congressional Review Act.) In addition to “true lender” threats, non-bank participants in bank-model programs will continue to face state licensing threats.

California 78

California Innovation Utah West Virginia 78

Perficient

JUNE 10, 2022

One of the greater concerns, in both the crypto community as well as financial regulators and government, is the value stability of the crypto asset. Regulators must therefore balance the need for stability and regulatory control with the need to allow innovation in the crypto marketplace.

blockchain 275

blockchain Regulation Policies FDIC 275

Bank Innovation

JULY 29, 2019

On the heels of digital banking startup Varo Money applying for a banking license with the Federal Deposit Insurance Corporation (FDIC) earlier this month, another fintech firm with its toes in charter waters seems poised to jump in.

FDIC 253

FDIC Digital Banking Fintech Online 253

CFPB Monitor

SEPTEMBER 14, 2021

Last week, the Federal Reserve Board published a paper on partnerships between community banks and fintech companies, “Community Bank Access to Innovation through Partnerships.” The Fed’s publication of the paper is another indication of the increased attention that regulators are paying to bank relationships with fintechs.

Fintech 78

Fintech Community Bank Community FDIC 78

BankInovation

JUNE 3, 2021

Federal Deposit Insurance Corporation (FDIC) is exploring how to shepherd such integrations while also assimilating changes in the agency’s internal tech stack. Starting June 14, Sultan Meghji, the FDIC’s inaugural chief innovation officer, and the supervisory body’s tech lab, […].

FDIC 90

FDIC Innovation How To Fintech 90

PYMNTS

APRIL 7, 2016

.” “As an industry, there’s not one specific issue we’re particularly worried about — the space is already heavily regulated, with borrower protections on one side and securities rules on the other,” said Sam Hodges, cofounder and U.S. Specific regulation [for the marketplace lenders] could be a healthy thing.”.

Lending 100

Lending San Francisco FDIC Regulation 100

Bank Innovation

APRIL 24, 2019

Secretary of the Treasury Steven Mnuchin said today that he prefers private over government solutions when it comes to collecting and using consumer data for financial products and services, speaking at a fintech conference hosted here by the FDIC.

Data 170

Data FDIC Washington Conference 170

PYMNTS

NOVEMBER 23, 2020

As for easing the path toward financial innovation, there’d always been some consideration of seeking a national banking charter, noted Cagney, especially as the company began building blockchain and blockchain applications over the past few years. Looking Toward The Blockchain . And herein lies the great irony in financial services.

National 215

National blockchain Montana Lending 215

BankInovation

JUNE 4, 2021

companies, Sultan Meghji, the FDIC’s new chief innovation officer, told BAN. In this week’s episode of "The Buzz," Bank Automation News tackles the question of what banks can expect from regulatory agencies when it comes to deploying artificial intelligence (AI) in financial services. AI may offer a competitive advantage for U.S.

Innovation 98

Innovation Company FDIC Compliance 98

CFPB Monitor

SEPTEMBER 10, 2020

The DBO indicated that it “is investigating whether LoanMart’s role in the arrangement is so extensive as to require compliance with California’s lending laws. While several states oppose the preemption of state usury laws in the context of bank/nonbank partnerships, federal banking regulators have taken a different stance.

Utah 78

Utah California FDIC West Virginia 78

Gonzobanker

FEBRUARY 1, 2024

For the bankers we talked with, acknowledging challenges—think NIM, credit, regulation, election uncertainty, unemployment and CRE—while portraying resilience created quite a few compelling narratives throughout the event. Five Hundred? (Oh Joint presentations between bankers and fintechs abounded, showcasing collaborative initiatives.

Conference 88

Conference FDIC Arizona Industry 88

Abrigo

MARCH 2, 2023

Takeaway 2 According to Forrester data, firms pursuing technology-driven innovation grow three to four times faster than industry averages. Community banks and the entire banking industry face downside risks from inflation, rising market interest rates, and continued geopolitical uncertainty, the FDIC said recently in its quarterly report.

Technology 195

Technology Lending Community Software 195

CFPB Monitor

APRIL 1, 2021

In what could be an important step towards needed regulatory updating to accommodate the growing use of artificial intelligence (AI) by financial institutions, the CFPB, FDIC, OCC, Federal Reserve Board, and NCUA issued a request for information (RFI) regarding financial institutions’ use of AI, including machine learning (ML). Uses of AI.

Risk Management 78

Risk Management Training Lending FDIC 78

FICO

OCTOBER 4, 2016

When federal banking agencies recently revised their Q&As for CRA compliance , their focus on the use of alternative data caught my eye. The Act requires federal banking agencies (the OCC, FDIC and Federal Reserve – “Agencies”) to conduct periodic reviews of each depository institution’s efforts in this area.

Lending 74

Lending Data Community FDIC 74

Javelin Strategy & Research

SEPTEMBER 2, 2014

I can’t get enough of innovation and digital strategy. My 30 year career started in merchant e-commerce technology, with numerous product management/leadership/launch roles before moving over to product-innovation research some fifteen years ago. I’ll provide one more example of the elusive win-win innovation.

Innovation 58

Innovation DC FDIC Strategy 58

CFPB Monitor

SEPTEMBER 9, 2020

1831d(a) (“Section 27(a)”), which governs the interest charges of state-chartered FDIC-insured banks. The recharacterization threat also diminishes both the opportunity for innovation in lending products and the availability of credit, especially for consumers with risker credit profiles. Under 12 U.S.C. § 12 U.S.C. §

FDIC 78

FDIC National South Dakota Lending 78

American Banker

AUGUST 25, 2023

The small community bank was bought up by crypto-focused investors and quickly repositioned to cater to tech innovators. Is this problematic or perfectly legitimate?

Community Bank 68

Community Bank Community Innovation FDIC 68

Bank Innovation

FEBRUARY 11, 2020

This week, digital banking startup Varo received approval from the Federal Deposit Insurance Corporation, a significant milestone in the company’s three-year quest to become a bank.

Digital Banking 293

Digital Banking Company Innovation Strategies FDIC 293

NCR

DECEMBER 18, 2015

Tech innovator Apple hit the market more than a year ago with Apple Pay , bringing along retailers as diverse as Macy’s, Duane Reade and Whole Foods as partners. The FDIC estimates that some 10 million households have no contact with a banking institution of any kind. And there are many alternatives, such as Venmo, Square and Belly.

Apple 40

Apple Retail FDIC Mobile 40

PYMNTS

OCTOBER 1, 2018

The DOJ investigation centered on whether LendingClub had – between January 2009 to September 2010 – misled its FDIC-insured loan originator, WebBank , leading the bank to underwrite over 200 loans that did not conform to the bank’s lending requirements. The DOJ Finding.

Lending 135

Lending Fraud Management San Francisco 135

CFPB Monitor

MAY 22, 2020

The Federal Reserve, OCC, FDIC, and NCUA have issued “ Interagency Lending Principles for Offering Responsible Small-Dollar Loans.” Effective management of credit, operational, compliance, and other risks. Repayment outcomes and program structures that enhance a customer’s financial capabilities.

FDIC 78

FDIC Policies Lending Guidelines 78

Bank Innovation

SEPTEMBER 18, 2017

SoFi’s hopes of becoming a bank have most likely been crushed after the departure of former CEO Mike Cagney, Securities and Exchange Commission former chairman Arthur Levitt told the Financial Times yesterday.

Utah 170

Utah Online Security FDIC 170

CFPB Monitor

NOVEMBER 22, 2022

In particular, the report’s recommendations deserve attention because they are likely to influence future actions by the federal banking regulators and the CFPB. (The The report is also worthwhile reading for its discussion of the role of fintechs and other non-banks in providing consumer financial services and how that role has evolved.).

Fintech 78

Fintech Report Data Lending 78

CFPB Monitor

MAY 7, 2020

While most of the report recycles information about which we have previously blogged, it does contain the following noteworthy information: The section of the report on “Innovations in access to credit” includes a subsection about “providing adverse action notices when using artificial intelligence and machine learning models.”

Lending 78

Lending Report FDIC Policies 78

William Mills

SEPTEMBER 9, 2016

I believe SEC regulations require a company to go public if they have more than 500 shareholders. Auto-financing is ripe for innovation. Addresses compliance, fraud experience and customer experience analytics. Social media is a special challenge since social media was not created with compliance in mind.

social media 40

social media ATM Mobile Customer Experience 40

BankInovation

JULY 31, 2020

After a three-year saga, Varo Money finally has its bank charter. The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Federal Reserve all signed off on Varo Bank N.A., the bank announced today. This is a thrilling milestone for Varo, as the bank charter has been a core part […].

Innovation Strategies 64

Innovation Strategies FDIC Strategy Compliance 64

CFPB Monitor

JUNE 25, 2020

On May 20, 2020, the OCC issued a final rule to “strengthen and modernize” its existing Community Reinvestment Act (“CRA”) regulations. The final rule is effective October 1, 2020 but sets mandatory compliance dates based on the applicable performance standards. This is the second in a series of five blog posts about the final rule.

Community 97

Community Lending Meeting Retail 97

Jeff For Banks

MARCH 29, 2014

The amount of deposits available to us while maintaining full FDIC insurance protection for our trust customers has consistently exceeded $30 million for the last three years. We are able to utilize relatively low cost deposits provided by our trust activities to fund additional loan growth. Texas Capital Bancshares, Inc.

Strategy 101

Strategy Texas San Antonio Fort Worth 101

Abrigo

JULY 22, 2022

Cryptocurrency regulation is on the horizon The ups and downs of the cryptocurrency scene have illuminated a need for guidance for traditional financial institutions. Takeaway 2 While these financial products are appealing, the lack of stability and consumer protections surrounding them are a concern for the FDIC. ? . What's next.

cryptocurrency 195

cryptocurrency FDIC Regulation Fraud 195

PYMNTS

AUGUST 29, 2018

Banks are graded on their compliance by the government. The FDIC and FCC did not back the comments on the part of the OCC, although both have shown an interest in rewriting the rules. The OCC has a 75 day comment period and will then share the responses with the other two regulators, noted the report. and Federal Reserve.

Community 100

Community FDIC Compliance Regulation 100

American Banker

FEBRUARY 1, 2024

s stance on innovation, and said they were worried about the impact that would have on the bank examination process. Top House Financial Services Committee Republicans questioned the Federal Deposit Insurance Corp.'s

FDIC 72

FDIC Innovation Policies Compliance 72

CFPB Monitor

SEPTEMBER 27, 2016

Republican Congressman Patrick McHenry, Vice Chair of the House Financial Services Committee, has introduced the “ Financial Services Innovation Act of 2016 ,” which is intended to provide a streamlined regulatory process for innovative fintech products and greater certainty about compliance requirements.

Fintech 60

Fintech Innovation Compliance Policies 60

CFPB Monitor

OCTOBER 13, 2020

Supporters point out the Proposed Rule would result in strong and consistent supervision of bank-fintech partnerships across the country, ensuring fairness and compliance with applicable laws, and note the Proposed Rule would keep the costs of credit down and encourage innovation.

Lending 60

Lending Colorado FDIC National 60

FICO

DECEMBER 19, 2018

I believe this will slip a few months but by June 2019 the proposed regulations will finally be available for public review and comment. Bank Secrecy Act/anti-money laundering (BSA/AML) regulatory reforms are top of mind for regulators and legislators. AML/BSA Reform Talks Will Intensify but Meaningful Changes Will Have to Wait.

Policies 40

Policies District of Columbia Regulation California 40