This is a roundup of industry news and links for the week of January 22nd that have informed, entertained, and inspired us.
Here’s our weekly roundup of industry news:
CFPB Delays Prepaid Card Rule Implementation For A Year – The Consumer Financial Protection Bureau (CFPB) has extended the effective date on its 2016 prepaid card rule, among other modifications announced today (Jan. 25).
The rule, initially passed, also modified requirements for the prepaid card industry in regards to official procedure on lost or stolen cards, error resolution and investigation, fee disclosures, access to account information and overdraft features, if offered in conjunction with prepaid accounts.
The changes, apart from rolling back the effective date, also adjust requirements for resolving errors on unregistered accounts and modify stipulations for cards linked to digital wallets.
Regulatory Compliance Update January 2018 – December was a slow month for regulatory activity. Congress enjoyed a short month with the Christmas recess and the on-going struggle at the CFPB over the new director brought a slowdown in regulatory activity.
Modernizing Collections Through Emerging Communication Channels – Lenders desire to engage with their borrowers and borrowers with their lenders, but both are finding it very difficult due to changing demands and expectations. This prevents lenders from capitalizing on potential dollars collected due to inefficient communication tools and strategies.
FinTech offers relief for millennials’ financial challenges – According to Forbes, millennials’ top 3 fears are: debt, affording rent, and budgeting.
While the first two are fears based on existing challenges, the third may well supply the solution for the former two, especially given the tools that are available through digital financial management tools.
How AI is transforming the future of fintech – In less than a split-split-second, the state-of-the-art computers running state-of-the-art high-frequency trading algorithms picked out the keywords from a trusted source and went into overdrive, reacting to what they perceived as a confirmed terrorist attack that never actually happened. These use neural networks to predict behavior, financial indicators and so on.