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For the first time, RDFIs will have a defined role in monitoring ACH payments they receive. This significant development, approved by Nacha members, aims to combat fraud, including business email compromise (BEC), associated with credit-push payments. As Jane Larimer, Nacha President and CEO, points out, "All participants in the ACH Network have a part to play in reducing the incidence of fraud and recovering when fraud has occurred." Learn more in our April 2024 Innovating Payments Executive Summary— Nacha Rules Take Aim at Credit-Push Fraud: https://lnkd.in/ezsgudgX. Plan to join Sean Carter, AAP, APRP, Mark J. Dixon, CTP, AAP, APRP, NCP, Mary Morrison, AAP, APRP, NCP, CAMS, and Patty Presta for a comprehensive two-part series, "Diving Into the Operation Impact of the New ACH Rules," on May 31 and June 07, 2024, where they will delve into the implications of these new rules, offering insights on implementation, procedures, policy updates, audits, risk assessments, and organizational engagement. 🔍 Curious about engaging with third-party providers? 📝 Wondering about new procedures and policy updates? 🤔 Unsure about ACH audits or risk assessments? Get the answers by registering for Diving Into the Operation Impact of the New ACH Rules: https://lnkd.in/e7y73DN2 #ACH #FinancialServices #FraudPrevention #RegulatoryCompliance #ProfessionalDevelopment

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To all #CDFI #CreditUnions Worried About Losing Certification: The CDFI Fund's revised CDFI Certification Application WILL NOT result in the loss of your certification, if you contact us now. CU Strategic Planning was at the forefront of advocacy to ensure the revision had the flexibility for credit unions to maintain CDFI Certification. Since then, CU Strategic Planning has been actively working with over 100 credit unions to ensure their recertification success. This includes creating advisory boards, community development mission statements, providing product design insights and defensible justification of product attributes. Most powerfully, with the depth of that expert consulting (not available through a technology company alone), we took a giant leap forward by merging two leading organizations to create a profound alliance with Callahan & Associates, Inc. the national leader in data analytics for credit unions. CU Strategic Planning is now a Callahan & Associates company leveraging the power of the most trusted data system in the movement. As THE credit union CDFI certification experts, we are and have been for the last 16 years working to ensure every credit union serving people of modest means can attain and retain its CDFI Certification. If you believe you are in jeopardy of losing your certification, come to the experts. No one has certified more credit unions as CDFIs than CU Strategic Planning. Learn more: https://lnkd.in/gbvdeYpe Schedule a call: https://lnkd.in/gr_FemEV

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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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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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Deposit fraud 💸 is hitting banks and credit unions on all fronts these days. While old-school, low-tech deposit fraud at the teller window hasn't disappeared, fraudsters have switched up their tactics. Now, they’re incorporating new schemes to exploit deposit channels that don’t require face-to-face human interactions—like ATMs and remote deposit capture. 🏧 💡 Explore why deposit fraud is such a persistent problem for banks and credit unions, and more importantly how FIs can fight back using a powerful one-two punch of big data and predictive analytics in our latest blog.

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We built BaZing so #communitybanks and #creditunions could have a unique checking product that wasn't about charging fees but about creating membership with significant value for their customers and members. And pressure on OD/NSF fees isn't just about FIs that are at or above the $10 billion threshold. If those banks and CUs have to comply to low or no OD/NSF fees, and lower interchange fees, then they can more readily compete with community FIs that haven't changed their policies or simply massaged around the edges. While on its face these fee reductions look to be something that might hamstring larger FIs, but in fact they'll use this shift as a competitive advantage (and make up for those fees elsewhere). BaZing is about delivering a unique product for community FIs to accomplish two key goals. 1. To provide a product that reinforces the core values of community banks. 2. To help community FIs thrive in a world of increasing competition, especially from mega banks and big regionals. BaZing is built to go from agreement to implementation in as little as three months. It's also been around for more than two decades, and has a roster of hundreds of community FIs that are happy customers. Maybe it's time to think about solving today's challenges with a product that's built for what current and potential customers/members want? #banks #banking #checkingproduct #communitybanking

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About a year after the FedNow service launched, financial institutions are focusing on delivering customer value through overlay services like Request for Payments (RfP) built on instant payment systems. This tool remains underutilized by many banks, with only 39% fully recognizing its high demand, resulting in missed opportunities. Meanwhile, fintechs are ahead of the game, offering streamlined invoicing and QR-based bill payments to attract business clients. It’s time for banks to catch up and harness the potential of RfP. Find out how in our latest blog. Why Banks Can't Afford to Ignore Request for Payment - Finzly https://hubs.la/Q02DSqzt0

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The industry should rally behind the Financial Data Exchange, which has stepped up to help develop standards and governance protocols for open banking in the United States, writes Hashim Toussaint, of FIS, in American Banker’s BankThink.https://https://lnkd.in/gpwFM-6X

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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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This week in exciting #OpenBanking news: last Wednesday, the Consumer Financial Protection Bureau (CFPB) announced a new rule explaining the qualifications and attributes a standard setting body will need to be recognized by the CFPB. This is significant because recognized industry standard setting bodies will be able to issue standards to companies so they can comply with the CFPB’s upcoming Personal Financial Data Rights Rule.   “Industry standards can be weaponized by dominant firms in order to maintain their market position, undermining competition for all,” said CFPB Director Rohit Chopra in the CFPB's press release. “Today’s rule will prevent these firms from rigging standards in their favor by identifying attributes the CFPB will use to recognize standard setters.”   To gain recognition from the CFPB, a standard setting body will need to display: ·  Openness ·  Transparency ·  Balanced decision-making ·  Consensus ·  Due process and appeals It is widely expected that the FDX API from the Financial Data Exchange will be declared as official standard, based on its existing market dominance. However, the CFPB has made it clear that FDX should not take this for granted, and with the release of these guidelines, they have set the bar for selection quite high, level playing field in the open banking ecosystem.   Read more in the release here: https://bit.ly/3KydorY

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Many banks and credit unions use Alchemer Digital to collect and respond to in-app and web customer feedback. This helps them drive data-driven product decisions and increase member retention. Learn how Advantis Credit Union uses Alchemer Digital to increase ROI and improve customer satisfaction, loyalty, and retention. https://lnkd.in/gitbeBgE

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⏰ BREAKING: The Fed, FDIC, and OCC just released a new guide to help Community Banks manage their third party risk. One key point of emphasis: "A community bank may engage an external party to conduct aspects of its third party risk management. However, the bank cannot abrogate its responsibility to employ effective risk-management practices, including when using a third party to conduct third-party risk management on behalf of the bank." Outsourcing third party diligence to a firm isn't enough - it's crucial to invest in internal operations because the bank is ultimately responsible. 🗒 Reach out to our team at [email protected] if you'd like to learn how we can help strengthen and streamline in-house efforts.

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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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Our Chief Payments Officer Trent Sorbe shared his thoughts on the FDIC’s proposed ‘Synapse Rule’ and its implications for bank-led BaaS programs. Questions remain about the rule's overall effectiveness in preventing a future Synapse-like disaster and reporting obligations placed on banks. Check out the full article in BankBeat to learn more: #BaaS #FDIC #Synapse #BankingRegulations

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Is your bank ready to modernize its core systems? With core modernization, regional banks can scale faster, launch new products, and meet the demands of today's banking environment. Core modernization goes beyond upgrading technology. It’s about responding to shifting market needs, improving customer engagement, and achieving sustainable growth. There are four main approaches to core modernization, each offering unique benefits depending on a bank’s needs and risk tolerance: 1) Big Bang Modernization: A full, rapid technology overhaul. 2) Greenfield Modernization: Building a new platform alongside the existing one. 3) Sidecar Modernization: Running new functions in parallel with legacy systems. 4) Progressive Modernization: Gradual replacement of legacy components. Each approach has its strengths, and it’s up to each bank to determine which path best aligns with their strategy for growth. What do you see as the biggest challenge for your bank when modernizing core systems? Explore the different approaches and find out which best fits your institution’s strategy in today's OrboNation blog post!

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NACHA’s new rules are transforming fraud detection for community banks, credit unions, and smaller financial institutions! Here’s what’s changed: - Return Reason Codes: RDFIs can now return suspicious payments with Return Code R17. - Enhanced Monitoring: Mandatory ACH credit monitoring begins with large institutions, expanding to all RDFIs by mid-2026. - Increased RDFI Accountability: RDFIs are now responsible for identifying and returning funds linked to mule accounts. These changes require immediate action for compliance and effective fraud prevention. Learn how NICE Actimize’s Xceed can help your institution adapt with AI-powered solutions for real-time monitoring and seamless case management. Read the full blog for insights: https://bit.ly/3UN2G6r #FraudPrevention #NACHA #NICEActimize #Compliance

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Just months after completing one of the biggest deals of her career, Stephanie Ferris, the CEO of Fidelity National Information Services, has a message for everyone: FIS isn’t done. Ferris and the company she leads is looking to get to back to buying. In February, FIS closed the sale of a majority stake in WorldPay to GTCR, a Chicago buyout shop. The transaction helped FIS cut its total debt, which had ballooned to about $19.1 billion at the end of 2023, to about $10 billion once the sale was completed. As of March 31, FIS debt stood at $11.2 billion while its leverage ratio was about 2.7 times, a spokesman said.  The deleveraging means FIS is reinstating its M&A agenda, Ferris said. The Jacksonville company provides fintech software to merchants, banks, and capital markets firms. FIS is allocating about $1 billion a year to deals and will be targeting small, synergistic products that the company currently doesn’t have or doesn’t have enough time to build organically, she said. Its purchase last year of Bond Financial Technologies, a banking-as-a-service startup, was an acquihire—something FIS is not seeking to replicate this time around. “We’re really looking for products or businesses that have revenues and EBITDA and a proven business model,” Ferris said. Read more: https://lnkd.in/eeuDust6

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It's a difficult thing in the digital world for banks to attract young consumers — and garner the loyalty of kids while they're young. U.S. Bank has found a promising solution through a partnership with fintech Greenlight. By integrating Greenlight's accounts and services into its own mobile banking app, U.S. Bank aims to attract the next generation of customers while providing valuable financial education and practical money management experience for kids The partnership addresses a critical gap in traditional banking offerings: the lack of transaction accounts for children. With Greenlight's debit card and money app, kids as young as 10 can learn to handle money and transact cashlessly, all while being subject to parental oversight. Parents can set spending limits, monitor transactions, and establish savings goals for their children, fostering financial responsibility from an early age. U.S. Bank sees two key benefits in this partnership. First, it differentiates the bank's "Bank Smartly" accounts, potentially attracting and retaining depositors who value financial education for their children. Second, by engaging with kids through Greenlight, the bank hopes to establish itself as the go-to institution when these young customers are ready for their first checking account. Greenlight's Brandon Horne, general manager of partnerships, emphasizes that the company's bank and credit union partnerships are an additional channel for growth, not a strategic shift. By embedding the parental experience in the bank's app, Greenlight gives financial institutions more ownership in the customer experience and facilitates a smooth transition as kids approach adulthood. Learn more in the full article by Steve Cocheo:

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The number of community FIs continues to shrink as megabanks and big regionals continue to expand their footprints into smaller markets. If you're a #communitybank or #creditunion looking to differentiate and compete against the big players and your peers, while also boosting primacy and organic growth, maybe it's time to find out more about BaZing. #banks #banking #noninterestincome #creditunions #communitybanking

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