On December 16, 2015, the Office of the Comptroller of the Currency (OCC) issued its semiannual risk assessments for federally chartered financial institutions (PDF here). Relevant to FinTech, the OCC noted: Banks are increasingly adopting innovative products, services, and processes in response to the evolving needs for financial services and growing competition from other banks and … Continue Reading
As an early “holiday gift,” to help you more easily search for a particular piece of guidance from the CFPB, we’ve put together two CFPB guidance documents. The first is a compilation of all nine issues of the CFPB’s Supervisory Highlights, from 2012 to 2015. The second is a compilation of all the CFPB’s Bulletins, … Continue Reading
The increased use of Yelp reviews, Facebook “likes” and other social media interactions to determine a borrower’s creditworthiness has caught the attention of regulators in US Department of Treasury, amid concerns that the data is too subjective and could result in discriminatory lending patterns if not used properly. On October 29, Antonio Wiess, an advisor … Continue Reading
In a move long anticipated by the industry, the Consumer Financial Protection Bureau (CFPB) on October 7, 2015 proposed to ban class action waivers in consumer financial contracts. Although the proposed ban would not take effect for a few years, it could lead to an increase in consumer class action lawsuits—some of which have been … Continue Reading
Jacqui Hatfield and Melanie Shone have recently written an article titled The FCA and FinTech: playing by the rules to support FinTech disruption, examining the role of the UK Financial Conduct Authority (FCA) in supporting the disruptive innovation of FinTech. The UK has one of the largest concentrations of emergent FinTech companies in the world … Continue Reading
On September 9, 2015, the Federal Trade Commission (FTC) and University of California Hastings College of Law hosted the first conference in the FTC’s “Start With Security” series. Aimed at start-ups and developers, the event featured security specialists to discuss design and development, scaling up data security as businesses grow, common security vulnerabilities, and vulnerability response. … Continue Reading
The Office of the Comptroller of the Currency has announced a new initiative to keep pace with innovation in the financial. On August 7, 2015, in remarks before the Federal Home Loan Bank of Chicago, the Comptroller of the Currency, Thomas J. Curry discussed the OCC’s efforts to develop a framework to evaluate new and … Continue Reading
By Heather Cantua Phillips, David Reidy and Nicholas Smyth on Posted in FinTech Trends
On August 14, 2015, the U.S. Department of the Treasury extended the comment period to give the public more time to respond to a Request for Information (RFI) on marketplace lending titled “Public Input on Expanding Access to Credit through Online Marketplace Lending.” The public now has through September 30, 2015 to provide comments. What’s … Continue Reading
On August 5, 2015, CFPB Director Richard Cordray lauded the results of a pilot project that explored online mortgage closings. The project found that consumers who closed their mortgage using an electronic platform were better off on measures of understanding, efficiency, and feeling empowered. In addition, Cordray noted that eClosings hold much promise of greater … Continue Reading
On July 9, 2015, the Consumer Financial Protection Bureau continued its focus on payment processing and joined the Federal Reserve’s efforts to develop faster and more secure payment systems by releasing its “Vision of Consumer Protection in New Faster Payment Systems”. The CFPB recognized the added benefits to consumers that evolving payment technology provides, including: … Continue Reading
