Efforts by three different parties to defend the CFPB were thwarted Feb. 2 when a federal appeals court denied the motions to submit briefs on behalf of the CFPB in PHH Corp., et al.v. Consumer Financial Protection Bureau.
There are many reasons to be excited about insurtech in 2017!
For those disappointed that President Trump’s regulatory relief executive orders wouldn’t extend to prepaid providers—and others covered under the CFPB’s final prepaid accounts rule—Sen. David Perdue (R-Ga.) may be coming to the rescue. On Feb. 1, Sen. Perdue, along with six co-sponsors, introduced joint resolution 19 that provides “congressional disapproval” for the rule, and which says that “such rule shall have no force or effect.”
The CFPB is “putting the prepaid industry on notice that companies will face the consequences if consumers are denied access to their money or to the services they pay for and on which they have the right to depend.” In its first enforcement action against prepaid providers, the bureau on Feb. 1 announced that UniRush and Mastercard will pay a combined $13 million for a 2015 service disruption that left cardholders without access to their funds.
The FDIC has appointed 30-year veteran Kathy Moe regional director for the San Francisco region.
Mastercard can put a notch in the win column after a High Court judge ruled in the payment card network’s favor regarding a lawsuit brought on by retailers disputing cross-border interchange fees on debit and credit cards.
The U.K.’s Financial Conduct Authority has fined Deutsche Bank £163 million (US$204.7 million) for failing to maintain adequate anti-money laundering controls between Jan. 1, 2012, and Dec. 31, 2015, according to Paybefore sister publication Banking Technology.
Paybefore’s first-ever payments year-in-review report, sponsored by The Bancorp, is available now. Offering an in-depth look at key trends and the Top 10 payments stories from 2016 that will continue to shape the industry in 2017 and beyond, this must-have resource examines everything influencing the industry from the CFPB and Uber to Brexit and Trump and much more.
A 2-year-old Federal Reserve plan to improve the speed, efficiency and security of the U.S. payments system has made significant strides toward those goals, but there’s more work to do, according to the Fed’s latest progress report on the initiative. First announced in a January 2015 document titled Strategies for Improving the U.S. Payment System, the plan includes several strategies to enhance the U.S. payment system to “meet the changing demands of American consumers and businesses.”
Your organisation’s satisfaction with its virtual card provider is the single most important factor determining the return you will receive on your investment. So when you choose a supplier, set your expectations high.
Francisco Lorca, MD of Startupbootcamp FinTech London, a UK-based accelerator, highlights the pitfalls of starting a fintech firm, drawing on his extensive 17-year experience in finance and entrepreneurship.
Experts from Blackhawk, Cachet, Arroweye, i2c and more explain what loyalty strategies are moving the needle with consumers and why.
Even if President Trump puts the brakes on federal regulation of the payments industry, state regulators are poised to swerve into the open lane that creates.
The technology that underpins bitcoin has received increased attention in recent months from corporate heavyweights. Here’s how blockchain can further revolutionize payments and related industries.
Payments companies hoping to gain market share in the exploding cross-border payments market must be able to meet demands for security, customer service, low costs and simplicity.
TSYS-owned NetSpend is negotiating with the Federal Trade Commission over the agency’s allegations that the prepaid provider deceived cardholders and denied or delayed their access to funds, TSYS Chairman and CEO Troy Woods told analysts this week in a fourth-quarter earnings call. TSYS also announced that NetSpend is working on diversification, including the launch of a demand deposit account later this year.
Prepaid providers—along with P2P and mobile wallet providers that fall under the CFPB’s final prepaid accounts rule—might have cheered to learn that President Donald J. Trump issued a freeze on forthcoming regulations on Jan. 20. Further examination of the White House memo detailing the freeze, however, suggests that it may not delay the Oct. 1 effective date for the final rule on prepaid accounts. But, it’s implications for the CFPB and some of its other regulations are unclear.
As companies fight for wallet share, ClassWallet’s focus on bringing efficiency to K-12 education expense management has helped the startup launch a successful digital wallet, prepaid card and online marketplace that could be a springboard to other niche markets.
Western Union will pay $586 million in customer refunds and beef up its money laundering and fraud protections. after admitting to criminally violating the U.S. Bank Secrecy Act and federal anti-fraud regulations, according to the U.S. Department of Justice. The settlement also involves the Federal Trade Commission and covers conduct that took place between 2004 and 2012.
Financial innovation is unlocking additional funding for small businesses that have been declined by their bank. Katrin Herrling, co-founder and CEO of Funding Xchange, explores.
Our new series of thrillers – produced and directed by CustomerXPs and Banking Technology – narrate the tales of the fight between the forces of good (the Clari5 analytics and anti-fraud software) and the forces of evil. Based on real events and guaranteed to keep you on the edge of your seat!
A Texas Republican under consideration to lead the CFPB met with President-elect Donald Trump last week, Trump Spokesman Sean Spicer confirmed on a Jan. 12 call with reporters, according to The Huffington Post. Former U.S. Rep. Randy Neugebauer, a long-time critic of the bureau and a proponent of repealing the Durbin Amendment and other aspects of Dodd-Frank, could please financial services providers, while putting retailers on edge.
Gift cards are very good for business, and getting better: 75 percent of U.S. consumers using the payment devices in 2016 spent more during their shopping trips than the value stored on those cards, according to a First Data study. That compares with 69 percent in 2015. The average extra spending stands at $27.74 more than the value of the card, the report said.
With last year’s Brexit decision casting uncertainty on U.K.-based e-money passporting, the Emerging Payments Association (EPA) has released a new report recommending the best options for U.K.-licensed fintech and financial services companies in danger of losing their European Union passporting rights following the U.K.’s exit from the EU.
Following the OCC’s plans for a special fintech bank charter, which has state regulators and a few Democratic senators up in arms, the National Economic Council (NEC) of the U.S., part of the Office of White House Policy, has published a whitepaper, “A Framework for Fintech,” reports Paybefore’s sister publication Banking Tech.
How can wearable technology be made popular in investment/wealth management services? We suggest a number of features that can create value and relevance to individual traders and wealth managers, if made available on smartwatch trading apps.
As you consider a New Year’s resolution to improve fraud prevention in 2017, remember that implementing fraud prevention at the platform level not only protects your merchants, but actually helps you enhance growth and protect margins and profitability.
Blockchain, the foundation for digital currency transactions, shows the potential to create better passenger ID and cut down on fraud targeted at airline loyalty programs.
Card issuers have only a few months to plan and implement the new CFPB rules. For card issuers looking to control costs and maintain more flexibility, now is the time to investigate on-demand card production and lean on the experts to ensure you meet the October 1, 2017 deadline.
All signs point to the rapid nationwide decline in check use being good for consumers, businesses and the financial system. Payments Canada forecasts that by 2020, virtually all checks written by businesses and governments in Canada will have migrated to electronic payments.
Credit card surcharges came before the U.S. Supreme Court on Jan. 10, in a case that concerns how much freedom retailers have in telling consumers they are being charged extra for the payment method. Comments from justices suggested that the Supreme Court might send the case back to New York for further review, though it was unclear when a decision would be announced, according to news reports.
The newly seated 115th U.S. Congress includes several new faces on one of the most important committees for financial services regulation. House Financial Services Committee Chairman Jeb Hensarling (R-Texas) announced 10 new Republican members who will serve on the committee for the new Congress.
A skirmish over the future of U.S. fintech is underway in the new U.S. Senate, with two Democratic senators this week saying a new federal charter governing the industry “could weaken consumer protections, limit competition and threaten financial stability.”
Ahead of what could be some big changes for the CFPB during the incoming Trump administration, the agency has announced new appointments to several leadership positions.
Artificial intelligence (AI) interfaces and chatbots could be revolutionary for financial institutions – but only if they strike the right balance between human and machine interaction.
The CFPB’s emphasis on fee disclosures and marketing practices was highlighted in a major way this week, as the bureau levied a $23.1 million enforcement action against credit reporting agencies Equifax and TransUnion over allegedly misstating the cost and usefulness of their products and “luring” customers into recurring payments. Although targeted at credit bureaus, the enforcement action offers key takeaways for payments providers shaping their own compliance efforts to stay out of the CFPB’s cross hairs, according to industry observers.
The U.K. Competition and Markets Authority (CMA) is worried that Mastercard’s billion-dollar deal to acquire VocaLink could hinder competition, and the CMA is giving the two companies until Jan. 11 to address a concern or face an “in-depth investigation,” according to the authority.
Establishing if someone is who they say they are in today’s virtual world is a major headache for banks and fintechs, thanks to the strict regulations they operate under and the difficulty in providing non-physical, verifiable forms of identity.
Complaints about prepaid products dropped 59 percent from September through November in 2016 compared with the same period the previous year, according to the latest CFPB Monthly Complaint Report. That drop, to 183 complaints on average per month, represents the largest percentage decrease in complaints among all the products tracked by the federal agency, and comes as the CFPB in its new report focuses on debt collection.
Look back at some of the most interesting and thought-provoking opinion pieces on all matters fintech published by Banking Technology in 2016.
