FDIC Approves Square For Banking License


The Federal Deposit Insurance Corporation ( FDIC ) gave the green light to an application from the FinTech firm Square to create a de novo industrial bank in Utah, the agency said on Wednesday (March 18). FDIC staff found that Square satisfied each of the statutory factors required for approval, subject to certain conditions. The FDIC is considerin g setting new stricter oversight regulations for FinTechs as a way to boost transparency and establish record-keeping rules.

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Varo files FDIC application, announces $100m Series C funding

Bank Innovation

Varo Money, the 4-year-old digital banking startup with 750,000 users and $600 million in deposits, has applied for a banking license with the Federal Deposit Insurance Corporation (FDIC) this week. Capital & Funding Carousel Premium Product Design Retail Banking fdic OCC Temenos Varo Varo Money Visa

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House Chairs Seek Briefing On FDIC Crisis Readiness During Pandemic


FDIC) to explain how the agency is preparing for a financial crisis. The lawmakers’ letter to FDIC Chairman Jelena McWilliams, dated April 13, cited an independent report about weaknesses in the Fed’s crisis readiness. Coronavirus Congress economy FDIC News What's Hot

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FDIC Looks To Modernize Bank Reporting


FDIC) is considering nixing its quarterly reports of banks in an attempt to modernize the way data is handled. To do so, the FDIC is going about a new competition among 20 data and technology firms to try and find the best way to move forward, WSJ reported. Recently, the FDIC also eased up the Volcker Rule. Bank Regulation bank regulation banking data FDIC Federal Deposit Insurance Corp. The Federal Deposit Insurance Corp.

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Varo’s FDIC application tests uncharted territory

Bank Innovation

Compliance Daily Post 1 Exclusive Open Banking Operations & Best Practices Premium Retail Banking Banking Charter fdic OCC Robinhood Varo MoneyVaro Money has been striving to get a banking charter for three years. On Aug. 31, 2018, the digital-only challenger bank finally received conditional approval from the Office of the Comptroller of the Currency. It’s still unclear, however, if the Federal Deposit Insurance Corporation will grant the final approval.

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FDIC Defines Bank Regs For FinTechs


The Federal Deposit Insurance Corporation ( FDIC ) is setting new regulations for FinTechs and industrial banks that will enhance transparency and establish record-keeping requirements, the agency said on Tuesday (March 17). This proposal would ensure that parent companies serve as a source of strength for their industrial bank subsidiaries,” said FDIC Chairman Jelena McWilliams. “By In 1987, parent banks were allowed to bypass FDIC oversight and regulations. .

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FDIC holds line on bank fees despite sharp deposit growth

American Banker

FDIC COVID-19 Jelena McWilliams Dodd-Frank Deposit insuranceThe agency’s insurance fund dipped below its statutory minimum last quarter thanks to the rapid rise in deposits, but officials say it should bounce back without a hike in premiums.


FDIC Releases Formal and Informal Enforcement Actions Manual


The FDIC released a manual on Formal and Informal Enforcement Actions. The FDIC released its manual on Formal and Informal Enforcement Actions. For the first time, the FDIC released its manual on Formal and Informal Enforcement Actions to provide greater transparency to those processes.

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Brex Offers FDIC Insurance, Adds Chief Legal Officer


Brex , the San Francisco financial technology startup, is offering FDIC insurance on its no-fee cash management account, the company announced Wednesday (July 22). The new feature in Brex Cash allows customers the choice to hold cash savings with FDIC insurance, or invest in Money Market Funds. Brex said the FDIC insurance on uninvested cash reserves up to $250,000 is the result of a partnership with UMB Financial Corp. ,

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FDIC: US Banks See Chargebacks Soar, Profits Tank Due To Pandemic


According to the Federal Deposit Insurance Corporation (FDIC), over half of all banks ended up reporting a decline in profits, and 7.3 In addition, the total number of problem banks the FDIC was watching rose for the first time since 2011, with 54 firms in the first quarter, up from 51. FDIC Chairman Jelena McWilliams , calling the organization “born out of a crisis,” said it had been able to service clients “effectively,” though. bank profits took a hit of 69.6

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Leonard Chanin joins FDIC

CFPB Monitor

The FDIC has announced that Leonard Chanin joined the agency on March 18 as Deputy to the Chairman. In that capacity, he will advise Chairman Jelena McWilliams on consumer protection issues, including further expanding access to banking services for unbanked and underbanked consumers, strengthening consumer research functions at the FDIC, and building upon the activities of the FDIC Advisory Committee on Economic Inclusion. FDIC Federal CFS Monitor chanin


Weekly Wrap: Varo gets FDIC approval, as Curve prepares for US launch

Bank Innovation

In this episode, editors discuss the following news developments: The implications of banking startup Varo’s FDIC approval; How U.K. Welcome to the latest episode of our Weekly Wrap series, for the week ending Friday, Feb. 14, 2020.

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Square Will Reapply for Banking License with the FDIC After Last Week’s Withdrawal

Bank Innovation

It plans to reapply with the FDIC, but did not reveal […]. Capital Cards Commerce Exclusive Innovations Lending Mobile Online Open Fintech Operations Payments Celtic bank fdic N26 SoFi SquarePayment processor Square has withdrawn its application to become a deposit-taking bank, a move similar to online lender Social Finance or SoFi, which withdrew its application last fall.

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Details on the FDIC Security Breach by Chinese Spies [VIDEO]

Bank Innovation

Risk Security fdicHow Chinese spies hacked into computers at the Federal Deposit Insurance Corporation from 2010 until 2013 -- and American government officials tried to cover it up.

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FDIC's brokered deposit proposal has a glaring problem

American Banker

FDIC ICBA Deposits Deposit insurance CFPBThe plan would encourage more risk-taking by big banks, which would put the industry and taxpayers in harm’s way, write former CFPB Director Richard Cordray and Camden Fine, onetime head of the Independent Community Bankers of America.


FDIC sign getting makeover for digital age

American Banker

FDIC Digital banking Deposit insurance ATMs Policymaking Branch bankingThe agency said it wants feedback on changing its ubiquitous logo greeting customers at branches and ATMs to address technological changes, shifting consumer behaviors and bank-nonbank partnerships.


House Chairwoman Tells FDIC To Halt ILC Charters


Waters wrote to Jelena McWilliams , chairwoman of the Federal Deposit Insurance Corporation (FDIC) , requesting the agency wait until new regulatory proposals on ILC charters are given the OK before any more of the charters are passed through. The FDIC plans to issue a proposal that will change the rules regarding ILCs, so Waters said it would be prudent for the agency not approve any new such applications until after people have had a chance to review the possible changes.

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FDIC Seeks Public Comment On Banks And Small-Dollar Loans


The Federal Deposit Insurance Corporation (FDIC) announced that it is has issued a request for public comments related to small-dollar lending by financial institutions. ” Recent research from the FDIC shows 20 percent of U.S. With that in mind, the FDIC suggests that in 2017, 14.8

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FDIC chief on why call reports are getting a makeover

American Banker

FDIC Fintech Jelena McWilliams Regtech Financial reporting Earnings Coronavirus Community banksJelena McWilliams explains the agency's decision to enlist the help of tech innovators to modernize a reporting process that the coronavirus epidemic has exposed as outdated.


Even with FDIC endorsement, fintechs' path to becoming banks is bumpy

Payments Source

FDIC Fintech ILCs Amazon Square Licenses and charters Fintech regulations Google Apple Law and regulationRecent steps that would help nonbank lenders enter the traditional banking system, like a proposal clarifying the industrial loan company charter, are needed but face strong opposition.


CA lawsuits challenging OCC and FDIC “Madden fix” rules to be heard by same judge

CFPB Monitor

The two lawsuits filed in federal district court in California by state attorneys general challenging the OCC and FDIC “ Madden fix” final rules will both be heard by Judge Jeffrey S. FDIC OCC Regulatory and Enforcement Usury madden

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FDIC Part 370: Support On-site FDIC Inspections

Perficient Financial Servies

In order to comply with FDIC Part 370, covered institutions will have to implement a change program that encompasses the people, processes, and technology necessary to support on-site FDIC inspections. In addition to the annual certification and report, the FDIC will conduct on-site testing of institutions’ compliance with Part 370. FDIC will be able to view customer PII.


FDIC floats certification program for fintechs working with banks

American Banker

The agency's request for information seeks comment on the idea of the FDIC partnering with a standards-setting organization to develop best practices for technology firms, among other things. FDIC Jelena McWilliams Fintech Vendor management Community banks


Where FDIC, OCC chiefs differ on post-pandemic banking

American Banker

FDIC Artificial intelligence Jelena McWilliams OCC Coronavirus Brian Brooks Law and regulationWhile they are not dramatically opposed, Jelena McWilliams and Brian Brooks have articulated their own ideas on postal banking and the use of artificial intelligence in lending.


Would McWilliams stay on at FDIC if Biden wins?

American Banker

Jelena McWilliams's term as FDIC chair expires in 2023, and she cannot be removed by an incoming president. FDIC Jelena McWilliams ILCs Joe Biden Election 2020 OCC CRA CFPB Marketplace lending Women in Banking


FDIC Part 370: Implement FDIC-Required Calculations And Reports

Perficient Financial Servies

In order to comply with FDIC Part 370, covered institutions will have to implement a change program that encompasses the people, processes, and technology necessary to implement FDIC-required calculations and reports. Once an organization has determined that it is able to meet the requirements of Part 370, it must go about designing their interfaces with the FDIC. The post FDIC Part 370: Implement FDIC-Required Calculations And Reports appeared first on Financial Services.


FDIC settles Operation Choke Point lawsuit

CFPB Monitor

The FDIC has announced that it has entered into a settlement of the lawsuit filed against it and the OCC in 2014 by a trade group and several payday lenders challenging “Operation Choke Point” — a federal enforcement initiative involving the FDIC, OCC and other federal agencies. The FDIC has issued two documents in exchange for the plaintiffs’ agreement to dismiss the lawsuit. FDIC Federal CFS Monitor OCC


FDIC Part 370: The Background

Perficient Financial Servies

While existing processes were deemed suitable to handle smaller or slower bank failures, the FDIC realized that it might struggle to pay depositors if a complicated bank failed rapidly. The FDIC is required by law to pay depositors “as soon as possible” after a depository institution fails, while also resolving claims at the lowest possible cost to the Deposit Insurance Fund. The post FDIC Part 370: The Background appeared first on Financial Services.


First Women's Bank receives conditional approval from FDIC

American Banker

FDIC Capital De novo institutions Community banksThe proposed Chicago de novo would focus on serving female entrepreneurs.

Seven states and D.C. file lawsuit challenging FDIC “Madden fix” rule

CFPB Monitor

The plain language of the governing federal statute applies only to interest that an FDIC-insured state bank may charge. As such, the rule “allows [FDIC-insured state banks] to assign to non-banks the ability to preempt state-law interest rate limits through the purchase of their loans.”.

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FDIC Part 370 Report Design

Perficient Financial Servies

Process design and documentation : Creating and documenting the report-generation and signoff process to ensure verifiable compliance with FDIC requirements. A thoughtful design that anticipates the FDIC’s specific requirements will save a company time and money and allow for a smooth interface with FDIC regulators. Financial Services Regulatory Compliance 12 CFR Part 370 Banking Banks compliance FDIC FDIC Part 370 Finance Part 370 Regulatory


FDIC board to discuss fund restoration plan next week

American Banker

FDIC Jelena McWilliams Dodd-Frank Deposits Deposit insurance CoronavirusA pandemic-driven surge in bank deposits helped drive the agency's insurance reserves below their statutory minimum.


FDIC Part 370 Readiness Evaluation

Perficient Financial Servies

— If you are interested in learning more about FDIC Part 370 and how we can help you comply with the rule, please download our comprehensive guide or complete the contact form at the bottom of this page. Financial Services Regulatory Compliance 12 CFR Part 370 Banking Banks compliance FDIC FDIC Part 370 Finance Part 370 RegulatoryThe first thing any bank has to do in its response to Part 370 is evaluate its current state of readiness.


FDIC Names New Advisory Committee Members

ABA Community Banking

The FDIC today announced the appointment of three new members to its Advisory Committee on Community Banking. The post FDIC Names New Advisory Committee Members appeared first on ABA Banking Journal. Community Banking Newsbytes


Rakuten refiles with FDIC for ILC charter

American Banker

FDIC ILCs Deposit insurance NonbankThe Japanese e-commerce giant is taking another run at a U.S. banking charter after receiving feedback from the Federal Deposit Insurance Corp. about its initial application, which was withdrawn earlier this year.