Michele Tivey

For those of us waiting for the release of 1033, it appears we have some insight over what will be included. While the Consumer Financial Protection Bureau (CFPB) plans to release its final open banking rule today, details were provided in advance to American Banker. Here's a summary: The CFPB is releasing its final open banking rule, expanding its scope to include payment apps and other financial products. The rule, named after Section 1033 of Dodd-Frank, requires banks to safely share financial data on various accounts and products, including Apple Pay, Google Pay, PayPal, Zelle, and Venmo. It aims to increase competition, enhance consumer choice, and establish strong data security and privacy standards. Key aspects of the rule include prohibiting data harvesting, allowing some secondary uses of consumer-authorized data, and extending the compliance period for large banks to April 1, 2026. The CFPB emphasizes that consumers have the right to know what data is collected, where it's stored, with whom it's shared, and to revoke access at any time. The rule is expected to encourage the adoption of secure APIs and potentially reshape how consumers use their personal financial data. My thoughts: This final open banking rule will likely significantly impact banks by requiring them to safely share a broader range of financial data, including payment app information, with third parties. While this may increase competition and consumer choice, it also presents challenges for banks in terms of data security, potential liability for third-party breaches, and the need to implement costly oversight measures for Fintech companies accessing consumer data. If banks are to stay ahead of the curve, banks should focus on partnering with those Fintechs that have robust API infrastructures while enhancing their data security measures. Additionally, banks could consider partnering with Fintech companies to create innovative products and services that leverage open banking capabilities, potentially turning this regulatory challenge into a competitive advantage. #banking #1033 #CFPB #bankingindustry #payments #creditunions #fintech #financialistitutions

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The #CFPB issued an interpretive rule describing how lenders issuing digital user accounts to access credit are also “creditors” subject to subpart B of Regulation Z. The rule makes clear that lenders issuing BNPL products and other digital user accounts to access credit will be regulated like credit card providers. Read more in this #clientalert: https://ow.ly/8IYm50RTU3w #legalnews

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Looking to elevate workflow efficiency? Shastic's AI-Workflow-Automation platform is what your credit union needs to revolutionize operational efficiency and member engagement. Why Choose Shastic? -Streamline Processes: Automate to save time and minimize errors to focus on high-value tasks. -Enhanced Member Experience: Deliver personalized, digital-first services that exceed member expectations. -Drive Efficiency and Growth: Leverage predictive analytics for data-driven decisions, enhancing your competitive edge. -Seamless Integration: Effortlessly connects to your existing systems in minutes with minimal IT lift. 🔍 Transformative Impact From loan processing to member services, witness a tangible improvement in productivity, satisfaction, and ROI. Join the leaders who are already redefining the credit union industry with Shastic. 🌐 Schedule Your Demo Today Don't just keep pace with technology—lead the charge. Request your Shastic demo today and take the first step toward a smarter, more responsive, and member-focused future. https://hubs.ly/Q02Py-7B0 #AI #workflowautomation #efficiency #automation #creditunion #banking #workflow

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There are ~1.6 billion transaction accounts in the USA, including credit cards, debit cards, checking accounts, Buy Now Pay Later (#BNPL), Health Savings Accounts (#HSA), etc. There are ~1.7 billion mobile wallet users across platforms like PayPal, Venmo, Apple Pay, Google Wallet, Samsung Pay, and Square's Cash App. At least 5.125–10.25 billion payment credentials are stored across the economy—both knowingly (registered & retained for payment) and unknowingly (captured & processed through negative & positive files)—by retailers, recurring billers, subscription services, government agencies, credit/debit bureaus, networks, and other payment processors. Crone Consulting LLC independent estimates, no public disclosure by the companies mentioned. The Consumer Reports Financial Protection Bureau’s #CFPB recent move to regulate Google raises the question: Why start with Google? If applied broadly, the ruling should include any entity processing more than 50 million transactions annually while retaining card credentials. This includes government agencies like the Social Security Administration #SSA and the Internal Revenue Service #IRS. Consider these annual transaction volumes: Apple Pay: 60 billion PayPal/Venmo: 31 billion Google Wallet: 16 billion Amazon: 8 billion Medicare: 2 billion Social Security: 1.12 billion IRS: 550 million While the CFPB claims to protect consumers, private entities like Apple Pay, PayPal, and Google Wallet consistently outperform government services in customer satisfaction, as reflected in their Net Promoter Scores (#NPS): PayPal: 65 Apple Pay: 61 Google Wallet: 44 Amazon: 49 Medicare: 19 Social Security: ~10 (Estimated) IRS: ~5 (Estimated) Why doesn’t the CFPB start with the worst offenders, namely their own governmental brethren? Private entities lead in user satisfaction, while agencies like the SSA and IRS lag far behind—emphasizing the urgent need for oversight and modernization to fulfill their “protection” mandate. Please 📤 Comment 🗨️, react 👍, and 🔁 reshare Steve Cocheo’s article in The Financial Brand (no paywall). 👇 #innovation #technology #ecommerce #bankingindustry #shoppingandtheretailindustry #marketing #selfservice #retailers #mobiletechnology #mobilepayment #fintech #digitaltransformation #bank #banks #banking #digitalstrategy #payments #digitalinnovation #socialcommerce #artificialintelligence #ai

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🔔 Major Milestone in Open Banking! 🔔 The Consumer Financial Protection Bureau (CFPB) has taken a crucial step in the enforcement of Open Banking standards. The CFPB has finalized a rule to recognize industry standard-setting bodies for Open Banking. This rule outlines qualifications for these bodies to ensure openness, transparency, balanced decision-making, and due process. The recognized standards will help implement the upcoming Personal Financial Data Rights rule, promoting innovation and fair competition. The rule includes a step-by-step guide for applications and mechanisms for maintaining recognition standards. NOTE: This is Not the publication of the final 1033 rule that will be published in the Fall but is a giant step in preparing for the 1033 implementation and to ensure its success. Follow OpenFinity and join http://openfinity.org today to stay informed. Read more here: https://lnkd.in/gJTm6NGs #openbanking #openfinance #CFPB #FDX Laurent Van Huffel, Laura Heritage Financial Data Exchange

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The current challenges of ACH fraud require an industry wide approach. Download our new infographic, NACHA’s New Rules: What Your Institution Needs to Know, to learn how your institution can be prepared to respond to this evolving landscape. https://buff.ly/3zMrvbh

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The CFPB's new rule will subject major payment providers to federal examinations — marking a historic shift in fintech regulation. But, it's not just about oversight. It's about data, power, and the future of financial services. "Google would be the crown jewel of the CFPB's supervisory expansion," notes Richard Crone of Crone Consulting LLC. His firm's analysis reveals the customer lifetime value of unified payment data ranges from $267 to $736 per transaction account. The possibility of being examined just like a big bank will make compliance issues more top of mind at the big techs and fintechs, adds former CFPB insider Gary Stein. It's a "tax on bandwidth and people" that these players haven't faced before.

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The Consumer Financial Protection Bureau has announced its much-anticipated plans to shepherd the adoption of open banking in the United States. Third-party financial companies are the driving force behind the open-banking model. However, regulators, including the CFPB, have expressed ongoing concerns about the growing dependence on fintech companies that aren’t required to comply with conventional banking regulations. Read more: https://ow.ly/ug5q50TSQ41 #CFPB #payments #openbanking #regulations #instantpayments

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To all #CDFI #CreditUnions Worried About Losing Certification: On December 7, 2023, the Community Development Financial Institutions Fund (CDFI Fund) published a revised CDFI Certification Application. Since then, CUCollaborate has heard from many credit unions that they worry about retaining Certification under the revised application. So, over the last few months, we have been working hard to develop strategies -- and the necessary software to support them -- to provide credit unions the best chance of retaining Certification. Below are some of the strategies, including software we have developed: 1. Custom Investment Areas (IA): While the revised certification application has significantly diminished the potential impact of custom IAs, they are still a critical tool for credit unions within reach of Certification but not quite there. Our software draws mathematically optimized, custom IAs based on a credit union’s lending activity and financial services. 2. Financial Services Option Analysis: Under the revised application, credit unions that either have 60% by number and 50% of the dollar, or 50% by number and 60% by dollar, can retain Certification if at least 60% of the credit union's depository account holders are members of one or more eligible Target Markets. We have found that the combination of a mathematically optimized Custom IA and the Financial Services Option is particularly effective in retaining Certification, specifically in desperate cases. 3. Target Market API: We have developed a CDFI Target Market API which supports a number of strategies to ensure that you meet your target market lending requirements moving forward. We have established, and continue to add more partnerships, with Fintechs (like National Auto Loan Network, LoanStar Technologies, GreenLyne, etc.) and loan participation platforms (like Aluvy, etc.) to help source qualified lending to ensure credit unions retain certification in the future. 4. CDFI Certification Dashboard: We have also developed a data analytics platform, allowing credit unions to monitor the necessary statistics to retain certification on a rolling basis to ensure that if they start to fall behind, proactive action may be taken before it is too late. 5. CUSO Strategies: If all else fails, credit unions can leverage CUSOs to either help the credit union attain or retain Certification directly OR indirectly gain the many benefits conferred by CDFI Certification through a CDFI Loan Fund CUSO. We know the value of your CDFI Certification, which is why we have invested significantly in developing strategies and proprietary technology that help credit unions retain Certification. Moreover, the software we have developed allows us to help credit unions retain Certification in instances when it would simply be impossible without it. If you believe you are in jeopardy of losing your certification, please contact us: https://lnkd.in/gsysDMTp

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The CFPB just raised serious concerns about FICO, and it’s a big deal. 🚨 Consumer Financial Protection Bureau Director Rohit Chopra didn’t hold back, highlighting how FICO's credit scoring system is failing the market. One striking quote from earlier this year: "Mortgage lenders have told the CFPB that costs for credit reports and scores have increased, sometimes by 400%, since 2022." - Chopra But the problems run deeper than just price hikes: 🔺 Limited Scope: FICO only works for people with established credit histories, leaving millions of creditworthy consumers behind. 🔺 Opaque Algorithms: Credit scores remain a "black box," despite their critical role in financial decisions. 🔺 Weak Predictive Value: Lenders find FICO scores aren’t predictive enough to remain as an important input in their models 🔺 Skyrocketing Costs: Lenders are frustrated with FICO’s price hikes, which stifle competition. The message is clear: the future of credit scoring must evolve. At Pave, we’re already building what’s next. Instead of relying on one-size-fits-all models, we’re creating dozens of tailored scores for specific industries and credit products. After all, a small-dollar loan isn’t a mortgage—and it shouldn’t be evaluated like one. The same goes for credit cards, charge cards, merchant cash advances, or business lines of credit. Each product has unique risk factors, and a one-size-fits-all approach just doesn’t work. Lenders using Pave are seeing the difference: ✅ More approvals ✅ Better risk management ✅ Stronger originations Are we finally moving beyond FICO’s dominance? Let’s discuss. 👇 #Fintech #CreditRisk #CreditScoring #CFPB #AlternativeData #CashflowAnalytics #CashflowUnderwriting 🔗 https://lnkd.in/e69SbkV2 

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The FFIEC CAT is retiring; is your bank ready for what’s next? I'll tell you a secret: Most banks and credit unions aren’t. And that’s where the risk lies. For years, the CAT has been the benchmark for financial institutions to measure their cybersecurity readiness. But come 2025, it's gone. The challenge? Regulatory expectations don’t just vanish. They evolve. Here’s what you’re facing: - Shift from checklists to risk-based, adaptable frameworks. - Greater scrutiny over risk management and mitigation. - New expectations for incident response and resilience. Without a clear strategy to replace the CAT, you’re walking into 2025 blind. And auditors? They’ll see right through it. But it doesn’t have to be that way. Imagine being ahead of the curve - confidently mapping your institution's cybersecurity posture to new standards while your competitors scramble to catch up. Even better - positioned to snap up their clients using that posture as a differentiator. That's the difference a proactive, expert-led approach can make. I've been helping banks and credit unions navigate cybersecurity for over a decade. And I'm positioning my clients for success now, not when 2025 arrives and regulators come knocking. Ready to take 2025 by storm? Drop me a DM with the word "Different" to position your security program as a compliance shield and a spear for new business. #Cybersecurity #Banking #FFIEC #Compliance #GuardianTechnologyGroup Take a look at Guardians article and let's be intent on having a great cybersecurity year in 2025. https://lnkd.in/gnggNQvY

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The Consumer Financial Protection Bureau has finalized a rule allowing them to supervise nonbank companies that offer digital wallets and payment apps, which account for over 50 million transactions per year. Read more here: https://bit.ly/3OV6uio #FinancialServices #CFPB 📝 Ellen Traupman Berge | Andrew Bigart | Jonathan Pompan | Christopher Boone | Chelsie Rimel

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Discover the power of Community Development Financial Institutions (CDFIs): We’re sharing the essentials: - What are CDFIs and how do they operate? - What does the current CDFI market look like? - Where do CDFIs source their capital? - How are CDFIs paving the way for a more equitable future? - How can CDFIs be included in client portfolios? Dive in and see how CDFIs are making a difference. Find out more: https://lnkd.in/enRY9ECw #ImpactInvesting #CommunityDevelopment #CDFI #SocialFinance #EconomicEmpowerment

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What happens when #BigTech meets financial #regulation? Google has filed a lawsuit against the Consumer Financial Protection Bureau (#CFPB), challenging its decision to place Google Payment Corp. under federal supervision. The case highlights growing #tensions between regulators and tech giants as companies like Google, Apple, and Samsung Electronics expand into financial services. With claims of "government overreach" and disputes over consumer complaints tied to a discontinued payment service, this legal battle could reshape the future of regulatory oversight for #nonbank financial institutions. 👉 How might the ruling impact compliance for digital payments? Read the full story on #Bobsguide and join the conversation! 📖 https://lnkd.in/dwn6kfaG #PayTech #RegTech #Fintech #DigitalPayments

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