DJ Seeterlin

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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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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🚨 CFPB Sues Major Banks Over Fraud on Zelle: A Wake-Up Call for Consumer Protection 🚨 The Consumer Financial Protection Bureau (CFPB) has taken legal action against JPMorgan Chase, Bank of America, Wells Fargo, and Early Warning Services (operator of Zelle) for failing to protect consumers from rampant fraud on the Zelle payment network. Since its launch in 2017, Zelle has facilitated billions of transactions, but hundreds of thousands of fraud complaints have been reported, with over $870 million in consumer losses tied to its vulnerabilities. The CFPB alleges that these financial giants rushed Zelle to market without implementing effective safeguards, leaving consumers exposed to scams while offering minimal support when fraud occurred. 🔍 Key Allegations 1️⃣ Failure to Prevent Fraud: Zelle’s weak identity verification allowed scammers to exploit its features and redirect payments to fraudulent accounts. Criminals easily moved between banks due to the lack of communication and fraud tracking across the network. 2️⃣ Ignoring Red Flags: Despite receiving hundreds of thousands of fraud complaints, the defendant banks failed to act on these patterns to prevent further fraud. Banks allegedly violated Zelle’s own rules by not reporting fraud incidents consistently or on time. 3️⃣ Abandoning Fraud Victims: The banks failed to properly investigate customer complaints or reimburse victims, violating federal laws like the Electronic Fund Transfer Act and Regulation E. CFPB’s Enforcement Goals Halt Unlawful Conduct: Stop banks and Zelle from engaging in unfair and deceptive practices. Consumer Redress: Obtain restitution for harmed consumers and penalties to fund victim relief. Enhanced Safeguards: Implement stricter fraud prevention and reporting protocols. 💡 Takeaways for Consumers Stay Vigilant: Scammers often exploit payment networks, particularly during the holiday season. Report Scams: Submit complaints about payment fraud to the CFPB at (855) 411-CFPB or via their website. The Bigger Picture This lawsuit underscores the critical need for consumer-first protections in financial technologies. Payment networks like Zelle must balance convenience with robust security to ensure trust and safety for users. AreEn Source - https://lnkd.in/eqanfzbh 💬 What are your thoughts on the CFPB’s actions? Have you or someone you know faced fraud issues with Zelle or similar platforms? Share your insights below to continue the conversation. Source: Consumer Financial Protection Bureau #ConsumerProtection #Zelle #FinancialFraud #CFPB #BankingSecurity #ConsumerRights #FinTech

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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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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 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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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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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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For many credit unions and community banks, balancing the need for enhanced security with operational efficiency is a daily challenge. At Illuma, we frequently engage with leaders in these financial institutions to discuss the adoption of voice biometrics for caller authentication. While implementing new technology requires an investment, maintaining outdated methods like out-of-wallet (OOW) questions typically entails significantly higher hidden costs. Read more at the link below! #technology #bankingindustry #data #strategy #banking #security #safety #financialservices #tech #customerexperience #development #customerservice #banks #callcenter #fraudprevention #fraud #creditunions #lending #authentication #creditunion

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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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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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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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Looking to maximize the efficiency of your citizen developer projects? Look no further! Join us in watching a compelling video featuring Major Sandin, SVP of Risk Strategy at U.S. Bank, as he shares invaluable insights on the pivotal role of IT collaboration in project success. 🚀 Don't miss out on Major Sandin's expert advice! Watch the video now:  https://lnkd.in/eg6iFiA3 #CitizenDevelopers #ITCollaboration #Innovation #AI #ArtificialIntelligence #MachineLearning #DigitalTransformation

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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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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 ASA excitement is continuously building here at Sharetec! We sat down with ASA and CU Broadcast to discuss the launch of ASA Vault, the first-ever embedded app store – which empowers members & provides them with a best-in-class mobile experience, decreases risk and fraud, and unlocks many opportunities to keep members in the credit union ecosystem. "We've seen a trend...of where you can go really deep with great partnerships. It's not just our duty, but our responsibility to do that. Now [with ASA] we're going to be able to deliver an experience that only you being on Sharetec can experience" - Joe Viater, President, Sharetec

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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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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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