Mark Gould

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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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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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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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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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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A Guide to Understanding ACH Do you ever wonder how your paycheck gets deposited directly into your bank account? 👉🏻 The ACH network, a robust system facilitating electronic bank transfers in the US. This comprehensive guide dives deep into ACH, explaining its functionalities and various transfer types including international transfers. Gain valuable insights on: ✅ What ACH is and how it operates ✅ Different ACH transfer types ✅ The mechanics of international ACH transfers ✅ Potential vulnerabilities Read the full guide in the comments ➡️ 

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As CFPB pushes towards open banking and consumer data access, credit unions face a pivotal moment in member service evolution. In our CUCopilot Session 11, our founder Saroop Bharwani explained 𝗵𝗼𝘄 𝘃𝗼𝗶𝗰𝗲 𝗮𝗴𝗲𝗻𝘁𝘀 𝘄𝗶𝗹𝗹 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺 𝗰𝗿𝗲𝗱𝗶𝘁 𝘂𝗻𝗶𝗼𝗻 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗿𝗼𝗺 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗩𝗥 𝘀𝘆𝘀𝘁𝗲𝗺𝘀 𝘁𝗼 𝗼𝗿𝗴𝗮𝗻𝗶𝗰, 𝗵𝘂𝗺𝗮𝗻-𝗹𝗶𝗸𝗲 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗮𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻 𝗶𝗻 𝗿𝗲𝗮𝗹-𝘁𝗶𝗺𝗲. At Senso, we're committed to elevating credit unions in this new era: • 𝗠𝗲𝗺𝗯𝗲𝗿-𝗙𝗶𝗿𝘀𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆: Building AI solutions for what matters most - exceptional member experience • 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗮𝘁 𝗦𝗰𝗮𝗹𝗲: Auto-categorizing interactions across 150+ credit-union-centred categories to ensure consistent, compliant service delivery • 𝗙𝘂𝘁𝘂𝗿𝗲-𝗥𝗲𝗮𝗱𝘆 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀: Moving beyond one-to-one MSR conversations to more intelligent, multi-channel member support without sacrificing personal touch As Saroop shared, '𝗪𝗲'𝗿𝗲 𝗹𝗶𝘃𝗶𝗻𝗴 𝗶𝗻 𝗲𝘅𝗽𝗼𝗻𝗲𝗻𝘁𝗶𝗮𝗹 𝘁𝗶𝗺𝗲𝘀 - 𝗮𝗻𝗱 𝗰𝗿𝗲𝗱𝗶𝘁 𝘂𝗻𝗶𝗼𝗻𝘀 𝗻𝗲𝗲𝗱 𝘁𝗼 𝘀𝘁𝗮𝘆 𝗮𝘁 𝘁𝗵𝗲 𝗰𝘂𝘁𝘁𝗶𝗻𝗴 𝗲𝗱𝗴𝗲 𝘄𝗵𝗶𝗹𝗲 𝗺𝗮𝗶𝗻𝘁𝗮𝗶𝗻𝗶𝗻𝗴 𝘁𝗵𝗲𝗶𝗿 𝗰𝗼𝗿𝗲 𝘃𝗮𝗹𝘂𝗲𝘀 𝗼𝗳 𝗺𝗲𝗺𝗯𝗲𝗿 𝘀𝗲𝗿𝘃𝗶𝗰𝗲.' Want to view Saroop's full update on how we’re helping credit unions thrive in this new regulatory, technological landscape? Leave a comment below 😊

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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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Macha, Inc. and PaymentsFirst, Inc. to Merge Combination Creates Dynamic Payment Association Macha, Inc. ("Macha") and PaymentsFirst, Inc. ("PFI") announced today that their respective Boards of Directors have approved a merger agreement under which the two payment associations will combine. Macha's wholly-owned subsidiary, Payment Advisory Resource ("PAR"), will continue to offer audit and consulting services under the combined payment association. "Our organizations have very similar cultures and approaches to education, advocacy, and member-oriented service, and this merger gives us the strength and resources to remain competitive going forward.," said Mary Gilmeister, President and CEO of Macha. Rich Leary, President and CEO of PFI added, "I am excited to partner PaymentsFirst’s, education, member services, proprietary audit and risk assessment software, and industry leading AI utilization with all the exceptional services Macha offers to their members." Gilmeister will serve as the CEO of the resulting entity, and Leary will serve as the President. Leary noted, "I’ve collaborated with Mary Gilmeister on many industry initiatives over the past 30 years and am truly looking forward to bringing our teams together to serve our combined members." Gilmeister observed that "Rich Leary and his team have built a legacy with PFI that makes it a perfect fit for Macha and we look forward to working together and carrying that forward." The merger is subject to approval by the members of both Macha and PFI in accordance with their respective bylaws. The votes are expected to occur in the 3rd quarter of 2024 with consummation to follow shortly thereafter. Reinhart Boerner Van Deuren s.c. served as Macha's legal advisor. Adams and Reese LLP served as PFI’s legal advisor. ### About Macha Macha was formed in 1975 and has more than 500 members. Macha, directly and through PAR, offers its members support on all payment systems, education, audit, risk and consulting services. www.macha.org. Contact Mary Gilmeister at (262) 345-1245 or [email protected]. About PFI PFI was formed in 2015 and has more than 650 members. PFI offers its members support on all payment systems, education, audit, risk, and consulting services. www.paymentsfirst.org. Contact Rich Leary at (678) 528-3234 or [email protected]. View the full press release here: https://lnkd.in/ec2g97Ak

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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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On November 21, 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule defining larger participants in the market for general-use digital consumer payment applications, such as digital wallets and payment apps. This rule establishes a supervisory framework for nonbank entities that facilitate a significant volume of consumer payment transactions, focusing on a higher threshold for larger participants, the exclusion of small businesses, and a limited scope to only include transactions in U.S. dollars. The rule affects large fintech companies such as Apple Pay, Google Pay, PayPal, which will now be subject to direct federal oversight under the CFPB's supervisory authority. The rule also highlights the shift in progress towards greater regulatory oversight of large nonbank fintech firms. https://lnkd.in/e8k_gffj #payments #banking #compliance #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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Unveiling GiveCard Bank Payments 🪄 We're talking about the incredible power of ACH and instant bank transfers via Fednow/RTP. Send bank payments that zip through, completing in mere moments. ⚡ No more conjuring up endless paperwork or waiting for days on end. With these magical instruments, disbursing funds becomes a breeze – swift, secure, and trackable every step of the way. 👣 ACH: A trusted tool for dependable, bulk payments to bank accounts. Instant Transfers: Instantaneous bulk disbursements, for when speed is crucial. GiveCard amplifies the magic further with effortless setup. Get started in minutes, no need to navigate complex mazes. Ready to embark on this financial quest? Join us in Givetopia, a realm where payments flow flawlessly, and organizations wield the power of instant disbursement ✨ Explore your options & enter Givetopia today: https://lnkd.in/g6CTNfVZ #ACH #Fednow #RTP #InstantPayments

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To the likely surprise of providers of buy now, pay later (BNPL) financing, the #CFPB recently issued an interpretative rule stating that BNPL products are actually "credit cards" under the Truth in Lending Act and BNPL providers are "card issuers" and therefore "creditors" under, and subject to, Regulation Z. Scott Pearson, Bryan Schneider and Eric Knight explain the significance here:

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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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The U.S. Open Banking landscape is shifting! Our essential report dives into the impact of the Consumer Financial Protection Bureau's (CFPB) latest regulation. Expansion into the largest financial market on your strategic roadmap? You can't afford to miss our dedicated chapter "What Every CEO Needs to Know" Download The Index now to hear from experts from both sides of the Atlantic. https://bit.ly/40K0lNx University of Oxford Fidelity Investments British Embassy Washington Department for Business and Trade Financial Data Exchange #USOpenBanking #FintechExpansion #OpenBanking #CFPB

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