Ron Shevlin

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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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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The financial industry is buzzing as the Consumer Financial Protection Bureau (CFPB) moves ahead with data protection regulations, laying the groundwork for open banking. While some see this as a compliance burden, the real opportunity is in transforming open banking into a revenue driver—well before regulations take effect. Waiting on the CFPB could be a costly mistake. Learn why your organization should start leveraging open banking APIs now: https://lnkd.in/dN8cvP6f #SensediaUSA #CFPB #OpenBanking #APIs

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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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Just months before the proposed implementation of the Consumer Financial Protection Bureau’s Open Banking rule, discussions are intensifying, with over 11,000 comments submitted. Banks are calling for more extensive regulation of fintechs, requesting a two-year extension to ensure compliance and implement necessary changes effectively. With consumers set to gain control over their financial data, banks are increasingly concerned about the security risks and liabilities posed by unregulated third parties. On the other hand, community banks have expressed concerns about the financial and technical burdens, emphasizing the need for mechanisms to recoup costs associated with the rule's implementation. #openbanking Read more:

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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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In December 2023, the Treasury released new guidelines for #financialinstituions to become certified as a #CDFI. We’ve written a blog post to share the basics of the new guidelines and what they mean for your #creditunion or #bank (https://lnkd.in/gqPAM5eq). If you’re looking to chat about the CDFI certification process or want to learn how we can help you get certified, shoot us a DM or email [email protected]!

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FedNow? The who and the what now? You may have heard of this (nearly) instant payment system going into effect - but how does it work, when does it work, and do FFCCU members benefit from it? We dig in to all your #FedNow questions in this recent blog post: https://hubs.li/Q02zSXcf0 #FFCCU #creditunion #savingsaccount #checkingaccount #instantpayments #creditunions #CUdifference #ILoveMyCreditUnion

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🇺🇸 The Consumer Financial Protection Bureau has finalised a rule that will subject the largest non-bank companies that offer digital funds transfer and payment wallets to the same federal oversight as large banks and credit unions. CFPB director Rohit Chopra said: “The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures.” Read more at the 🔗 #payments #digitalpayments #BigTech #paymentapps #dataprivacy #fraud #fraudprevention #paymentinnovation https://lnkd.in/d86qNjPW

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🏦 BIS 🏦 CAMELS 🏦 CFPB 🏦 CFTC These are just some of the acronyms in the banking industry that every banker should know! Banking+ helps you decipher these banking acronyms (and more) in a guide to industry lingo: https://lnkd.in/eDaWg4_h #Acronyms #Banking #Bankers #BankingIndustry #Enrichment #BankingPlus

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How is your team tackling the spikes in #delinquency 🤔 #CreditUnions and Community #Banks are turning to Eltropy's #AI-Powered Conversations Platform to tackle rising delinquency rates in the lending industry. As delinquencies spike, our innovative solution is empowering financial institutions to navigate challenges and enhance customer interactions 📱 Check out the full release ⬇️ https://lnkd.in/ghkK5Gax

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As member of the Center for Payments, and in conjunction with Nacha and ICBA, SFE is seeking your input on a fraud study: https://lnkd.in/ejhc2kRb.   The study has three primary objectives: -- To deepen understanding of the impact that payments fraud imposes on financial institutions and their customers or members. -- To evaluate the current methodologies employed by financial institutions in identifying instances of payments fraud. -- To delineate the strategies and protocols adopted by financial institutions once instances of payments fraud are detected. The results will be used to provide actionable insights that will empower financial institutions to enhance their defenses against payments fraud and safeguard the integrity of their operations. In addition, each participating financial institution will receive a confidential, personalized Company Performance Report. Please take the time to respond, limiting to only one response per FI. The survey closes May 31, and we want to make sure we have your input! https://lnkd.in/ejhc2kRb. Danita Moss, AAP, NCP Pam Rodriguez, AAP, CIA, CISA Catherine Bishop, AAP, APRP, NCP Sandra Parker David P. Dominic Plumeri, AAP, APRP

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Each handbook contains all the knowledge necessary for compliant ACH operations in a condensed format that is more easily referenced and digested by the Originator. It includes an overview of the ACH Network, its participants, and why it is a safe, efficient payment system. 🔗Link to purchase: https://lnkd.in/gMM_r_Jr #Payments #Publications #Origination #Handbook #ACH

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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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Are you up to speed on the American open banking rule #CFPB #1033 set to be finalized in the second half of this year?       Introduced by the Consumer Financial Protection Bureau, CFPB Rule 1033 will help accelerate the adoption of open banking technologies and further protect consumer interests as we move further into the digital future ✅       In the guide below, we outline the key provisions of CFPB’s proposed Rule 1033 and explain its impact on banks, fintechs and other holders of consumer financial data 👇      Read on to discover what CFPB’s Rule 1033 might mean for you — and how Mastercard equips customers to thrive in this new landscape: https://lnkd.in/d2a8Fnsn  

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The Consumer Financial Protection Bureau has released the first part of its 1033 rule - How it will recognize standards setting organizations. I'll have more to say after I've digested this portion of the rule. For now, from the CFPB's press release: To be recognized by the CFPB, the standard setters must apply to the CFPB and display the following attributes: ◼ Openness: The CFPB will not recognize any standard-setting organization that is rigged in favor of any set of industry players. The process must be open to all interested parties, including public interest groups, app developers, and a broad range of financial firms with a stake in open banking. ◼ Transparency: Procedures must be transparent to participants and publicly available. ◼ Balanced decision-making: The decision-making power to set standards must be balanced across all interested parties, including consumer and other public interest groups. There must also be meaningful representation for large and small commercial entities. No single special interest can dominate the decision-making process. ◼ Consensus: Standards development must proceed by consensus, though not necessarily unanimity. Comments and objections must be considered using fair and impartial processes. ◼ Due process and appeals: The standard-setting body must use documented and publicly available policies and procedures, provide adequate notice of meetings, sufficient time to review drafts and prepare views and objections, access to views and objections of other participants, and a fair and impartial process for resolving conflicting views. An appeals process is also available for the impartial handling of procedural appeals. https://lnkd.in/evJJ9KpC

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With the rise of digital channels in bank marketing, the pressure to keep marketing compliant becomes even greater. Marketing compliance isn't just about avoiding fines-- it's about building and maintaining customer trust! 💥 📣 A big shoutout to NEW JERSEY BANKERS ASSOCIATION for featuring Julia Wild, our Director of Strategic Partners, in their latest magazine issue! In her article, "How To Keep Your Bank's Financial Marketing Compliant and Effective," Julia breaks down the key steps for keeping your marketing compliance on track. Julia explains the 3 most common pitfalls in marketing compliance. (Spoiler alert: they’re misleading ads, lack of transparency, and inconsistent monitoring!) Plus, Julia shares 5 must-follow best practices for staying compliant. 💫 Check out the full article here - https://lnkd.in/e3525nGz #FintelConnect #NewJerseyBankers #MarketingCompliance

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🚨 Big changes ahead for digital payment apps! The CFPB has finalized a rule to supervise major nonbank payment providers, ensuring better protection for consumers against data misuse, fraud, and service disruptions. 🔗 https://lnkd.in/eNFTcUGB

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