Sybel J. Pietersz Parker, RIMS-CRMP

Synthetic Identity Fraud is Skyrocketing—Is Your Credit Prequalification Process Secure? The 400% rise in synthetic identity fraud reported by Capital One is a stark reminder of the challenges auto lenders face today. One possible contributor to this surge could be the “Get Prequalified” calls-to-action (CTAs) on dealer websites, which may inadvertently open the door to fraudulent applications. Addressing this issue early in the loan process is critical, and that's where solutions like VeriQual™ step in. By verifying identity right at the credit prequalification stage—using just a phone number—patent-pending VeriQual helps lenders and dealers identify potential fraud before it becomes a costly problem. Integrating identity verification with soft-pull credit prequalification ensures that only legitimate applicants move forward, reducing risk while enhancing the customer experience. In an era of increasing fraud threats, implementing secure, streamlined tools like VeriQual can make all the difference. Lenders need to take a more proactive role in helping dealers combat fraud, as they face greater potential losses and compliance exposures if synthetic fraud goes unchecked. VeriQual info here: https://lnkd.in/g8u9tK_C How is your team handling the rise in synthetic identity fraud? #AutoFinance #FraudPrevention #SyntheticFraud #VeriQual #IdentityVerification #RiskManagement

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Why payments need to be borne as 'public goods'? This Federal Reserve Board Governor Waller's speech put it simpler (in 2 complementary ways): 1. Identifying the need and timing for technical standards, incorporating a breadth of industry perspectives, and aligning on implementation approaches requires 'coordination', and central banks play a key role as neutral conveners to harmonise efforts from all relevant stakeholders. 2. Leading by example, central banks' operated payment platforms provide expertise in the adoption of standards and best practices. RTGS systems remain as the backbone of the financial system, they serve as rails for safe and efficient settlement in central bank money #RTGS #payments #ISO20022 #standards #innovation

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CFPB Considering Regs Mandating Easy Escalation to Human August 15 New York Times - Real people on customer service lines. When a robotic voice begins its long prompt of menu options on a customer service line, A HUMAN COULD BE JUST ONE CLICK AWAY under a potential new rule by the Consumer Financial Protection Bureau (similar for FTC & FCC). Implementing this could be a nightmare BUT, as I've noted in a post last month, ease of escalation is now a critical driver of satisfaction for complex issues. The problem with the regs is that they may not allow for intermediate intervention of AI or self-service and could impose draconian civil penalties. You can start worrying now - I'll come back with a recommended best solution after a bit more thought. Feel free to suggest your ideas if these regs come to pass.

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Every bank regardless of its size must satisfy regulatory compliance, full stop. Found out of compliance brings regulator sanctions, as the subject banks have found themselves recently. #banks #regulatoractions

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The Risk Management Association GCOR Session: https://lnkd.in/gqSwtDEH Community banks can use artificial intelligence to redefine customer experience and improve operations. In this session, speakers (Rey Garcia- Texas National Bank; Shannan Herbert- Washington Area Community Investment Fund, Inc. (Wacif); Laura Kornhauser- Stratyfy) will explore how to harness the technology to understand and anticipate customer needs and drive sustainable growth.

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If this happens, NCUA and Federal Deposit Insurance Corporation (FDIC) will need to act FAST to provide clarity around custody and banking of digital assets. I know of less than a handful of local #banking and #creditunion institutions currently prepared for such a tectonic shift (because they've taken the risk of being ahead and prepared despite ambivalence amongst bureaucrats). If those entities don't pick up the pace on blessing processing of new money data, like #Bitcoin, then logically one could surmise the bureaucrats have a simple goal ... fewer institutions to regulate. Travel agents, in the era of online ticket booking; record stores at the advent of the iPod. The team at DaLand LLC can help you get into the world of streaming money and #web3 wealth. We've been working for years to ensure new data money is easily and elegantly integrated into your banking operations. Don't let this be on the national stage, and not in your strategic plan for your financial institution. Nothing good will come of that (well, actually, Chase, Wells, JP Morgan, BofA and others will reap some rewards; but, that's not what we're about at DaLand). #bitcoin #money #dollar #trump #election #btc

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#BAI: Financial organizations need to be able to respond to #OCC and #FDIC guidelines for #ALM and #Risk stress testing that are not only demanding but differing.  https://lnkd.in/gSEw6zyR

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I appreciate this is a touchy subject... but I'm someone who likes a good conversation. 😉 To summarize, the banking industry and the Consumer Financial Protection Bureau (CFPB) are sharply divided over the bureau’s new open banking rule, which requires large banks to make consumer financial data accessible to third parties upon request. Banks argue the CFPB overstepped its authority, while the bureau insists the rule boosts consumer choice and market competition. The rule could reshape the financial landscape by facilitating data portability, allowing consumers to switch providers more easily and pushing traditional banks to compete with fintechs and nonbanks. With the new administration entering the White House, the rule’s future may be uncertain. Past regulatory shifts were reversed under changing administrations, and the CFPB's leadership will likely pivot again. Still, the CFPB’s push for open banking, including payment initiation through Fintech apps, represents a significant industry shakeup, setting the stage for new entrants to challenge incumbents in banking and payments. I'd love to hear your thoughts. #banking #bankingindustry #openbanking #1033 #cfpb #creditunions https://lnkd.in/gzGDTsHG

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I don't know about you, but I'm excited 🤥 for the comment period on the FDIC's proposed new compliance and recordkeeping rules given the significant impact it would have on banks engaged in banking-as-a-service (BaaS) platforms and bank-fintech partnerships. ❔ How it works now: Fintechs deposit customer funds into a single custodial account at their partner bank that may hold the funds of thousands of customers and businesses. 😯 ❌ Why it matters: Partner banks (or ye old FDIC) might not be able to determine which customers own what funds within the account if one of the parties goes belly up. 🔍 What’s coming: ✔ Banks will need to implement enhanced recordkeeping to identify beneficial owners and track their balances. ✔Contractual updates will be required between banks and fintechs to reflect new obligations, likely involving renegotiation of existing agreements. ✔Daily reconciliation, internal controls, and certifications of compliance will become mandatory, alongside additional reporting to the FDIC and your primary regulator. These changes will require a significant operational shift (read in 💲, hence my excitement for the commentary). Regardless, it's probably going to happen because... one bad apple. Preparing now will ensure you meet compliance expectations and avoid potential disruptions to your partnerships. If you’re evaluating what’s needed to align with the proposal, feel free to reach out. We’re working closely with institutions to help build the technical infrastructure and frameworks required to comply. #Compliance #RiskManagement #Fintech #BaaS #FDIC #Banking #PassThroughInsurance #RegulatoryUpdate #Recordkeeping

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Consumer Financial Protection Bureau (CFPB) subjecting large payment apps to the same supervision and regulation as banks, what specific areas will the CFPB monitor, and how might payment apps respond to these new regulations? Areas the CFPB Will Monitor: Privacy and Surveillance: The CFPB will ensure that large payment apps comply with regulations  regarding data collection and sharing. Consumers must be able to opt-out of certain data practices and be informed about how their data is used. Errors and Fraud: The CFPB will monitor how payment apps handle transaction disputes and fraud. Apps must manage disputes internally rather than shifting them to banks or credit card companies. Debanking: The CFPB will oversee how payment apps handle account closures and freezes. Ensuring that consumers do not face unexpected disruptions in their ability to make or receive payments is a priority. How Payment Apps Might Respond: Compliance Enhancements: Payment apps will have to pul their socks and invest in improving their compliance frameworks to meet the new regulatory requirements. This includes better data privacy measures, robust fraud detection systems, and efficient dispute resolution processes. Operational Adjustments: Companies may need to adjust their operational procedures to handle disputes internally and avoid relying on external financial institutions. This could involve upgrading their customer service capabilities and dispute management systems. Lobbying and Legal Challenges: Big Tech companies might lobby against the new regulations, arguing that they are overly burdensome or unnecessary. Legal challenges could also arise, potentially delaying the implementation of the rules. In my opinion this approach can be implemented by the regional and local regulatory bodies such as #Central #banks The regional  and local regulators could adapt similar regulatory measures to oversee large payment apps in the region. Establishing a Regulatory Framework: Developing a comprehensive regulatory framework specifically for payment apps. Defining clear guidelines and standards for data security, consumer protection, and compliance. Creating a Dedicated Oversight Body: Establishing a dedicated department within the governing body to monitor and regulate payment apps. Implementing Compliance Requirements: Requiring payment apps to adhere to AML, KYC, and other financial regulations. Mandating regular audits and reporting to ensure compliance. Promoting Transparency and Consumer Rights: Ensuring payment apps provide transparent information to consumers about their services. Protecting consumer rights by enforcing fair practices and efficient dispute resolution mechanisms. By adopting these measures, the local regulator can ensure that payment apps operate in a secure, transparent, and consumer-friendly manner, similar to the objectives of the CFPB. #CFPB Central Bank of Oman Mala'a #payments #privacy #Surveillance #Debanking #Compliance

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Interesting reading on the fraud that is prevalent in Zelle. When you operate a platform, there is inherent responsibility for safeguards. This is what happens when the requirements for these safeguards are not governed. I’m sure there will be more in the coming days. https://lnkd.in/eVp5wS6r

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Affirm says CFPB’s proposed BNPL rules will confuse customers "...While Affirm supports the adoption of consistent BNPL regulation by the Bureau, Affirm asserts consumers and the BNPL industry would be better served by BNPL-specific regulations designed for how consumers use BNPL products,” the company’s letter reads. “Requiring BNPL providers to comply with rules designed for open-end credit cards creates compliance challenges and confusing outcomes for consumers...” #bnpl #regulation #comments #installment #creditcards #confusion Payments Dive Consumer Financial Protection Bureau Rohit Chopra Klarna Zip Co Afterpay Sezzle _________________________________ If you want to immediately see new content that I curate 👉🏻 Ring my bell (🔔) and follow #informationbanker or Informationbanker and if you want to get the posts that got noticed in my weekly What’d I miss newsletter, subscribe here: "https://lnkd.in/d5_KvWwu"

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The Data Desk is now open! In a new series, CBA dives deeper on financial policy analysis with a focus on data and economics. In our 1st edition, Policy Analyst James Mulholland shares important insight from the CFPB Consumer Complaint Database. https://lnkd.in/eXhZ5GP5 #banking #policy #data

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Banks and Incumbent FIs want to innovate at a faster pace; not only do they want to move faster, but they also want to do more innovation (across the business), wants higher RoI on their innovation initiatives and do it at a lower cost and risk. If all of this interests you, then tune into this week's episode with the Founder and CEO of NayaOne, Karan Jain NayaOne claims to be a gateway to new financial technology for financial services players (regulators, banks, insurers, etc) through their 'Sandbox-As-A-Service' offering which come along with a marketplace of qualified fintechs/ tech solution providers and a whole lot of 'synthetic data' which can be customised for different use-cases and geo markets. They are one of the few #innovation platforms which are gaining rapid traction as incumbents want to accelerate their corporate experimentation but want to do it with 3rd party partners outside their own environment. They also want to test the solution before making the 'big' decision. In my opinion, these platforms are poised for hypergrowth as we see a shift in the mindset & habit of many incumbent FIs. This shift includes: ✅ Test before you commit ✅ Partner and Co-Create Vs Master - Servant/ Buyer - Vendor relationship ✅ Gain greater access to potential partners from beyond the local markets ✅ Get access to tried & tested 'use-cases' ✅ etc…. Enough from me, do tune into the episode tomorrow as Karan shares his perspective on the above and we also chat about the rise of digital assets, future of CBDCs, the roles of VCs and CVCs in fintech, and compare fintech landscapes in the UK, US, and Middle East. Thank you to Season 3 sponsors: Adyen Mastercard geidea Thunes ToYou | تويو and M2P Fintech #FinTech #DigitalAssets #Innovation #VC #CVC #Regulation #uk #uae #banks #futureoffinance #payments #returnoninvestments

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For #FraudFriday this week, an interesting perspective out of American Banker on check fraud that begs the question - is all #fraudloss equal? Some community bankers say no when it comes to the degree of cooperation and collaboration amongst financial institutions, and in part you have to wonder if this may be the result of the lack of clear guidance or regulatory expectation for fraud programs across financial institutions, who are generally not required to maintain fraud programs to the same degree as their BSA counterparts. After all, how many of us who have or do run fraud departments have tried to contact a mega bank's fraud department with no response or no ability to even reach them, even when you're trying to return their customer's funds? 🙋‍♀️ According to the article, the pain points for small institutions occur in circumstances such as these: "Checks are intercepted by criminals through the mail, altered by check washing, and then deposited in so-called drop accounts or mule accounts, which are later emptied. Small banks end up repaying their customers whose checks are stolen, but it can take months for them to get reimbursed by large banks in contravention of longstanding Uniform Commercial Code rules." These small banks assert that lax onboarding or know your customer policies at a small group of large banks are the root of the issue, and would seek to shift liability to the bank of first deposit to encourage better fraud practices for checks deposited through digital and other channels. The impact otherwise to them feels outsized, and some of the facts support why this issue is so big: - Fraudulent checks are often submitted in smaller dollar amounts, that don't generally draw a ton of interest in criminal prosecution from law enforcement unless part of a bigger operation. - Breach of warranty claims against other FI's are both complex because of their resolution at the state level and often not worth the cost of pursuing when combined with lawyers' fees. Ultimately, all parties playing a role in stopping fraud - #banks, #creditunions, and #fintechs like - will be more effective when they can work together. How do you encourage this within your own organization today? American Banker link: https://lnkd.in/eddc8DqU #checkfraud #fraudprevention #frauddetection #fraudrisk #fraudstrategy

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We are honored to have your talents here CheckAlt - Lynn Dufrane Patrick Law. Now that the cat is out of the bag that you are here, your phone will be ringing off the hook. Isn’t it amazing how all are looking for the best check processing solutions? Isn’t it a bit nuts how check fraud is a huge issue? And how complex this is since banks, credit unions, corporates and fintechs all want the same but yet different ways to process. This is @checkalt. We have the solutions, the onboarding, the security, the software, the best team. The only thing we have not figured out is the post office. Maybe one day…nah..we will just stay the course in being our best.

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