This blog post will briefly explore operational, strategic, and regulatory considerations related to the use of financial technologies by financial institutions in the COVID-19 era. We specifically view these considerations through the lens of two nearly contemporaneous events from earlier today: Our law firm’s publication of a Client Update, authored by Youssef Sneifer, regarding the movement of the financial services industry from digital transformation to digital optimization and acceleration, as a result of changes…

Weekly Fintech Focus The FFIEC issues a statement promoting financial inclusion and addressing racism and discrimination within financial services. The OCC issues a final rule codifying the valid-when-made rule. The CFPB issues FAQs about remittance transfer timeliness impacted by foreign government closures of nonessential businesses in response to COVID-19. The NY DFS and the French bank regulator enter an MoU to collaborate on fintech issues. FDIC extends comment period for proposed rule relating to approval…

Weekly Fintech Focus Google and HUD announce work to improve Google’s Advertising Policy. Colorado does not extend usury law preemption to non-banks. CFPB announces advisory opinion pilot program. The CFPB issued an FAQ on credit reporting protections under the CARES Act. The OCC is considering a “True Lender” rule clarification. New Mexico prohibits writs of garnishment and writs of execution as they pertain to consumer debt.…

A new update published by Perkins Coie’s Investment Management practice, reviews a summary report, issued on June 10, 2020, by the Financial Industry Regulatory Authority (FINRA), regarding the existing and emerging uses of artificial intelligence by securities industry market participants. The report, Artificial Intelligence (AI) in the Securities Industry, reflects nearly two years’ worth of dialogue between FINRA’s Office of Financial Innovation and over two dozen market participants, including broker-dealers, academics, technology vendors, and service…

Weekly Fintech Focus The current pandemic creates new stresses on the relationship between payment processors and merchants, but there are ways to work through these challenges together. See here for our discussion reserve account issues in credit card processing agreements. FinCEN seeks comment on the burden financial institutions face when filing SARs. The CFPB files its first status report on its progress on rulemaking regarding the small business loan data rule. The CFPB issued a…

The current economic slowdown can affect credit card processing agreements between companies and payment processors. It is an issue relevant to all companies that accept or process credit cards as a method of payment. The following update analyzes financial risks that companies (merchants) and payment processors face under their processing agreements during a slowdown, and it proposes certain proactive steps companies and processors can take to manage their respective risks, while maintaining a positive long-term…

Weekly Fintech Focus Bank regulators issue long-awaited guidance on offering small-dollar, short-term loans. CFPB issues small-dollar lending no-action letter template. CFPB provides guidance to people receiving pandemic relief on prepaid cards. FinCEN issues guidance on COVID-19-related financial crimes. Plaid announces the launch of a bank API development program to give banks, especially small banks, control over account data sharing with fintechs. Libra Association hires former FinCEN director to be its general counsel. FIS survey documents…