American Banker reports on the increasing number of financial services companies and groups using the federal court system to oppose regulatory enforcement orders and new initiatives; the Conference of State Bank Supervisors is the most recent case as the group seeks to debate the OCC's fintech charter; the CFPB has also been a notable defendant with opposition from Ocwen Financial and PHH Corp.; other cases have included MetLife and the American Bankers Association; according to H. Rodgin Cohen, chairman of Sullivan & Cromwell, "There's an increased willingness to litigate," and it seems the trend is likely to continue with industry changes resulting in new challenges and consequences. Source
Barclays US is trying to ensure they use AI in a efficient yet non intrusive way so their customers can get the most out of the technology; Tearsheet spoke with Mona Jantzi, managing director of strategic analytics and customer experience at Barclays US, to learn more about how the bank uses AI; topics discussed include using data to shape customer experience, going beyond product offerings, the dangers of AI use with data and more. Source.
The current crisis has highlighted some of the key areas where banks fall short with their customers; while writing in...
The Federal Reserve released its Consumer Credit report for October on Wednesday; the report showed an increase of $16 billion in total consumer credit; revolving credit increased by $2.3 billion and non-revolving credit increased by $13.7 billion; the increase resulted in a seasonally adjusted annual rate of growth of 5.2%; at 5.2% the rate is the slowest since June; consumer spending was also down in October with a 0.3% increase signaling caution from consumers in spending and borrowing. Source
Lawmakers and other government officials are working to make changes to the Paycheck Protection Program; there has been slowing demand...
The worst week in SoFi‘s history is coming to an end. The company announced today that Mike Cagney has stepped down as CEO effective immediately. This follows the news on Monday that Cagney would be stepping down as CEO by the end of the year. But the bad news this week kept escalating and the board decided it needed to take action now. Source.
Morgan Stanley recently bought more than $14mn of local subordinated bonds from online lender Geru Tecnologia e Servicos; Brazil has...
According to a survey by Cornerstone Advisors 8.2 percent of respondents said they will open a checking account with Marcus...
Customers using Zelle within their banking app have fallen prey to a scam where they send money for tickets but never receive the ticket; since the transaction is instantly done the scammer then closes their account and by the time the bank fully settles the payment the money is gone; banks in the Zelle network, and Zelle itself, have said do not send money to anyone unless you know and trust them; when money is lost customers are asking who should be responsible for replace the funds, should the bank refund them or Zelle; the relationship between the banks and Zelle is not entirely clear from the user perspective, with more frauds occurring customers are starting to ask more questions. Source.
ValueWalk has analyzed the recent CB Insights report on fintech funding as well as the Forbes 50 report on the...