‘It’s always a black box’: One fintech’s ordeal working with Synapse
GrabrFi, a challenger bank for freelancers outside of the U.S., has found both hurdles and opportunities by working with banking-as-a-service middleware vendors.
CFPB proposes new mortgage servicing rule to aid struggling borrowers
The Consumer Financial Protection Bureau has proposed requiring that mortgage servicers exhaust all efforts at assisting struggling borrowers before moving ahead with a foreclosure.
McKernan and Chopra want clearer bank-fintech guidance
Federal Deposit Insurance Corp. Board Members Jonathan McKernan and Rohit Chopra agreed on the value of clearer bank-fintech guidance to enhance regulatory clarity, foster innovation, and ensure fair competition in the financial services sector.
Visa, Mastercard won’t raise European fees; Alipay adds AI copilots
The card networks extended an agreement to keep interchange the same for cards issued outside of the European Union; meanwhile Ant Group’s Alipay adds a number of AI-powered assistants.
It’s up to state regulators to lead the way in payments innovation
Washington policymakers are not adopting policies necessary to keep the U.S. on the cutting edge in payments. Fortunately, the dual banking system offers an alternative path forward.
Yellen resists calls to punt deadline for beneficial ownership
Republican lawmakers want the Treasury secretary to extend the deadline for U.S. businesses to submit beneficial ownership information to the agency’s Financial Crimes Enforcement Network. She emphasized that the agency is focused on penalizing willful non-compliance rather than enforcing ‘gotcha’ penalties against small businesses.
Banks may see higher office loan losses than they expect: Moody’s
The ratings firm evaluated 4,100 loans to assess the state of 41 banks’ commercial real estate risk. It found that the lenders should be holding, on average, about twice the amount of reserves they currently have for office loans.
Fed’s Barr warns of third-party risks in financial inclusion efforts
The Federal Reserve’s top regulator praised industry efforts to expand access to banking services, but warned about financial stability risks.
A look into Colorado’s pioneering AI legislation
The Consumer Protections for Artificial Intelligence bill passed in May seeks to enhance consumer protections from the potential biases in AI systems through increased transparency and accountability from developers.
Fed’s Powell says new proposal for Basel III endgame is “essential”
The Federal Reserve chair said there is a consensus within the central bank’s Board of Governors for re-proposing its capital rules, but notes that other agencies have not yet signed off on this approach.