Utah Becomes the Third State to Establish a Fintech Sandbox

CCG Insights

Utah has joined Arizona and Wyoming in establishing a fintech sandbox, a tool for financial innovators to create new products while being partially shielded from regulatory issues. Banker in the Know CCG Catalyst Arizona Compliance fintech regtech Regulations sandbox Utah Wyoming

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Utah’s new regulatory sandbox

CFPB Monitor

Utah Governor Gary Herbert signed H.B. The sponsor of Utah’s legislation, Rep. ” Utah’s regulatory sandbox, which is effective as of May 13, is similar in many respects to Arizona’s sandbox, which began accepting applications in August 2018 and now has six participants.

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CFPB and Utah AG announce joint office hours in Salt Lake City as part of ACFIN

CFPB Monitor

The CFPB and Utah AG’s Office have announced that they will hold the first joint office hours as part of the American Consumer Financial Innovation Network (ACFIN). The joint office hours will be held on January 30, 2020 in Salt Lake City, Utah.

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California governor to fintechs: Forget Utah. Be an ILC here.

American Banker

ILCs Innovation Fintech Fintech regulations CFPB CaliforniaGavin Newsom's proposal to create a consumer watchdog modeled after the CFPB includes a provision that would make it easier for upstart financial firms to obtain industrial loan charters.

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This week’s podcast: A close look at Utah’s new regulatory sandbox program

CFPB Monitor

Utah is now taking applications for its new regulatory sandbox program. Marc Roberts, the sponsor of the bill that created the program, and Bryan Cowley, the Utah regulator who will oversee the program’s administration. FinTech State CFS Monitor sandbox utahIn this podcast, we interview Rep.

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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). The headquarters will be in Salt Lake City, Utah.

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Predatory ‘Rent-a-Bank’ Lending Practices Trigger Calls For Regulation


Consumer advocates are pushing federal banking regulators to do something about rent-a-banks with notoriously sky-high loan rates that prey on people with bad credit, the Wall Street Journal (WSJ) reported on Wednesday (March 11). Utah has no caps on interest rates. “A

CFPB Rolls Out Innovation Regulator Network


A network to better coordinate financial innovation among federal and state regulators is being launched by the Consumer Financial Protection Bureau (CFPB) in partnership with several states, the agency said in a press release. State regulators in every state were invited to join. .

Square’s ILC bid may open floodgates for fintechs

Payments Source

Fintech regulations ILCs Fintech Law and regulation Square SoFi Varo Money OCC FDIC State of UtahSquare became the third fintech firm in recent months to seek out a bank charter. Others are likely to follow.

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Bankers Tell Me Their Top Industry Game Changers

Jeff For Banks

I teach Bank Profitability for the Washington, Utah, and Montana Bankers'' Associations EDP programs. If you were asked what one industry trend will change the face of banking forever, what would you say?

Bankers Tell Me Their Top Industry Game Changers

Jeff For Banks

This week I did my annual tour of the West, teaching Bank Profitability in the Executive Development Program for the Washington, Oregon, and Utah Bankers'' Associations. Regulations : Here is where I think future and existing executives would agree.

SoFi’s Bank Charter Has Almost No Chance, Former SEC Chairman Says

Bank Innovation

The charter, submitted to the State of Utah last June, would give the online lender the ability to collect deposits insured by the […]. Compliance Exclusive Lending Online bank charters fdic Financial Regulation online banking online lending SEC SoFi Student Lending

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Senate Antitrust Panel To Look At Big Tech Acquisitions, Competition


Mike Lee of Utah and Sen. It has 11 active cases regarding the EU’s General Data Protection Regulation , or GDPR, the report said. He also said Ireland will pass along some of the draft decisions to the EU’s 27 other national privacy regulators.

Square gets OK for bank; Banks seek regulatory relief

American Banker

Utah bank is expected to launch next year; banks want to hold off regulations that would hamper efforts to keep money flowing during virus crisis.

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Capitol Hill Hearing Examines ‘Rent-A-Bank’ Schemes To Sidestep Interest Rate Caps


Lauren Saunders, who serves as associate director of the National Consumer Law Center, said state-regulated lenders “lauder their loans up to 160 percent annual percentage rates through banks in order to evade state interest rate caps. At a Wednesday (Feb.

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Square Tries To Create A Bank, Again


Square said it’s going to resubmit the necessary paperwork with state and federal regulators to start a bank in Utah, which could happen as soon as Wednesday (Dec. Banking bank license Bank Services challenger bank financial services News regulation Square What's Hot

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Zuckerberg Visits DC To Talk Tech Laws With Senators  


Warner, the vice chairman of the Senate Intelligence Committee, has been vocal in his support of regulating Big Tech. and Senate Judiciary Antitrust Chairman Mike Lee (R-Utah). Facebook Big Tech Capitol Hill laws News privacy regulations Senators washington D.C.

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President Trump Says Government Will Investigate Tech Giants


The Washington Post pointed to Senator Orrin Hatch, the Republican from Utah who wants the probe reopened. Regulation Amazon Antitrust Big Tech DoJ Donald Trump Facebook Google News tech industry What's Hot

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DOJ Taps Prominent Lawyer For Big Tech Probe


Mike Lee of Utah, the chairman of the Senate subcommittee on antitrust matters , said he planned to ask about the letter at a hearing, where FTC Chairman Joe Simons and DOJ Antitrust Chief Makan Delrahim were expected to testify.

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Square gets US federal approval to activate as a bank

The Paypers

US-based digital payments company Square has received the approval from federal and state regulators to open a bank in Utah, United States

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5 Ways Walmart Will Impact Your Credit Union

New York's State of Mind

In July of 2005, Walmart filed an application to open an Industrial Loan Bank in Utah. The Utah bank regulator was flooded with 3,500 comment letters describing Walmart’s application as a sign of the Apocalypse. One commenter described a Walmart bank as a “dangerous and unprecedented concentration of economic power.” Others fretted that Walmart would drive […]. General GoBank Green Dot Walnart

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CFPB To Push Through Arbitration Rule


District Court in Utah to order customers suing the bank to resolve their issues via arbitration. Regulation arbitration clause class action lawsuits Donald Trump Wall Street wells fargo What's HotThe Consumer Financial Protection Bureau will likely finalize rules that prohibit financial institutions from implementing arbitration clauses that stop consumers from filing class-action lawsuits before president-elect Donald Trump takes office on Jan.

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Peter Thiel Is Leading The Search For Trump Administration Antitrust Officials


Sean Reyes, the Utah attorney general, is considered a leading contender – which is less good news for Google, since Reyes last year co-wrote a letter to the FTC asking the agency to consider reopening an antitrust case against Google that it has previously been closed. Regulation Peter Thiel What's Hot

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Are Big Changes Coming To The Military Lending Act?


“If the White House does this, it will be manipulating the Military Lending Act regulations at the behest of auto dealers and banks to try and make it easier to sell overpriced rip-off products to military service members,” said Christopher Peterson, a law professor at the University of Utah, who reviewed the documents. “It The White House, according to NPR’s documents, seems sympathetic to industry requests that that regulation be rolled back.

Small Business Borrower Sues Kabbage


Usury laws regulate how much interest can be charged on a loan. State and federal regulators, including the Consumer Financial Protection Bureau (CFPB) are working to hold marketplace lending platforms accountable to usury law compliance, the publication noted, under the argument that the platforms are the true lenders. Kabbage works with Celtic Bank, chartered by the state of Utah, to provide SMB borrowers with loans via its platform.

Fed proposal to revise control rules would not create alternative to OCC fintech charter

CFPB Monitor

Under current regulations, private equity firms are ineligible to register as bank holding companies because they are control companies that are engaged in impermissible activities.

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Amicus briefs filed in support of Seila Law’s certiorari petition

CFPB Monitor

Attorney Generals of Texas, Arkansas, Georgia, Indiana, Kansas, Louisiana, Nebraska, Oklahoma, South Carolina, Tennessee, Utah, and West Virginia.

Banks Fighting SoFi’s Banking Charter


The action comes a week after the FDIC announced that digital lender SoFi had applied to the state of Utah for a special banking charter known as an ILC. Ten years ago Walmart to launch in Utah, where many ILCs are based, and was shut down. You don’t have any regulation of the parent company under the Bank Holding Act; that is almost always the reason why companies are setting these [structures] up,” he said.

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gpi Makes SWIFT Cross-Border Gains


Reuters reported that the license allows non-traditional finance firms to collect government loans, and that the bank would be chartered in Utah. Regulators had said a refiling would be permitted.

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Paul Watkins, Director of the CFPB’s Office of Innovation, discusses final innovation policies in Ballard Spahr webinar

CFPB Monitor

It also announced the creation of the American Financial Innovation Network (AFIN), a network of federal and state regulators to facilitate innovation, and issued its first NAL under the final revised policy.

Why SoFi Has Changed Its Tune


The Wall Street Journal reported on Tuesday (July 12) that the online lender, commonly known as SoFi, with $10 billion in student loans and mortgages across its books, may be forced to don more traditional financial services garb as the online lending sector is buffeted about by negative headlines and looming regulations. One avenue for rebounding from the vagaries of online lending would be, said WSJ, a move for approval for SoFi to grab a state banking charter in Utah.

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Company that entered into CFPB consent order loses motion to dismiss class action

CFPB Monitor

The amended complaint alleged violations of TILA, violations of the Utah Residential Mortgage Practices and Licensing Act, unjust enrichment under Utah law, and as to a California subclass, violations of California’s Unfair Competition Law (UCL). (The Barbara S. Mishkin.

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LendingClub’s Laplanche Starting New Online Lender


The loans will be issued by WebBank out of Utah and later purchased by Upgrade. A key principle of the company is maintaining the highest levels of trust with borrowers, investors, regulators, stockholders and employees,” Hans Morris, the newly named executive chairman, said in a statement said at the time.

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CFPB suspending routine supervisory examinations for MLA compliance

CFPB Monitor

Peterson, a University of Utah law professor who participated in the drafting of the Department of Defense’s regulations implementing the MLA, observed that enforcement “will go from a proactive system to something that is completely reactive.” On August 10, the New York Times reported that Mick Mulvaney, the CFPB Acting Director, intends to dispense with routine supervisory examinations of creditors for violations of the Military Lending Act (MLA).

Data Dive, Supersize Edition: Warby Parker, Whole Foods And WhatsApp


Indian regulation requires all payments data be processed in-nation — instead of on Facebook’s servers. Just a few days into the new year, early indications are that 2019 could shape up to be a “more is more” kind of a year.

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