The COVID-19 pandemic and resulting economic effects have accelerated the speed of change in the financial services industry. The need for optimization and acceleration of digital adoption requires urgency and more than just an organic approach to growth and innovation. To succeed in the current environment, financial institutions, fintech companies, and technology companies must coevolve. At the heart of the coevolution approach is effective capture of the synergies between the parties, allowing them to each…

Weekly Fintech Focus The CFPB orders a bank to pay over $100 million to resolve a pattern of violations of EFTA, UDAAP, and FCRA related to the bank’s overdraft services. The CFPB issues an RFI seeking information about the effect of the CARD Act on small entities. FinCEN provides clarification about bank customer due diligence flexibility for onboarding and servicing PEP customers. The CFPB is still on track to issue its small business data rule…

Weekly Fintech Focus The FTC issues a staff perspective summary of video game loot boxes and microtransactions. FinCEN releases a statement on its approach to compliance and enforcement actions for violations to the BSA. CFPB extends comment period for RFI on credit discrimination to December 1, 2020.…

Weekly Fintech Focus Federal banking agencies issue joint statement on enforcement of the BSA. The California DBO issued an interpretive opinion declaring a payment processing arrangement not to be exempt under California’s agent-of-the-payee exemption for pay-in and pay-out transactions for online gambling. The California DBO issued an interpretive opinion that maintains its position that cryptocurrency is not money under the Money Transmission Act, but certain crypto-activities could trigger the state’s escrow law. The Federal Reserve…

Weekly Fintech Focus The Federal Reserve is quickly moving up its timeline for the launch of its real-time payment service. FinCEN issues new FAQs to clarify that covered financial institutions have flexibility and discretion in how they conduct customer due diligence and update information about their customers. FFIEC issues a statement on COVID-19 loan accommodations. CFPB complaints on payments increase during the pandemic. FDIC Final Rule allows for greater employment of those with minor criminal…

Weekly Fintech Focus Bank and credit union industry groups come out against the Fintech Charter, while Comptroller Brooks pushes forward. The CFPB plans on issuing a proposed rule to address consumer-authorized access to financial records and data aggregation. The CFPB issues an RFI in an effort to expand access to credit and prevent discrimination. FinCEN issues an advisory alerting financial institutions to patterns of COVID-19-related cybercrime. Three states sue the OCC over its recent valid-when-made…

Weekly Fintech Focus FDIC seeks input on new technology certification program. CFPB takes action to help employers develop emergency savings programs to boost worker financial resilience. The OCC seeks comments on its proposed True Lender rule. New York proposes amendments to its gift card regulations that would prohibit or limit fees and expirations in addition to providing for a new cash-back redemption right.…