Real-time payments (aka RTP) have become an increasingly hot topic for bankers as the launch of FedNow, a new instant payment infrastructure established by the Federal Reserve, nears. It will enable financial institutions of every size across the U.S. to provide safe and efficient instant payment services. The service moves from the pilot stage to a full launch in July 2023 and will be rolled out in several phases of functionality.
Topics: Vendor Negotiation, Mortgages, FedNow, Real-time payments, RTP, The Clearing House
The first quarter will not be easily forgotten, given two of the biggest-ever bank failures and the ensuing panic that engulfed several other regional banks.
Topics: Deposits, Apple Savings, Securities, Commercial Real Estate, Net Income
![SRM-ICBA-Blog-Image[99]](https://blog.srmcorp.com/hs-fs/hubfs/SRM-ICBA-Blog-Image%5B99%5D.jpg?width=829&height=476&name=SRM-ICBA-Blog-Image%5B99%5D.jpg)
Bankers began arriving at the Independent Community Bankers of America’s annual convention eager to discuss a broad range of strategies for navigating 2023.
The fact that the conference was held in Hawaii – a destination that was scrapped a couple of years ago because of the pandemic – was a cause for optimism despite several headwinds.
Topics: FDIC, Deposits, Community Banks, liquidity, Assessments
It’s not every day that a phrase as vague and slanted as “junk fees” becomes an actual legislative term, but here we are. In various statements, the White House and the Consumer Financial Protection Bureau (CFPB) have defined junk fees as “hidden or unexpected fees” and “increasingly sophisticated tools to disguise the true price consumers face.”
Although President Biden highlighted hotel resort fees, concert ticket services, and airline surcharges in his State of the Union address, the CFPB has also pushed to lower the cap for most credit card late fees from roughly $30 to $8. Limiting or eliminating NSF/overdraft fees is also high on the agency’s agenda.
Topics: Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management, Overdraft, CFPB, Credit Cards, Retail Banking
![CFPB-WP-Blog-Image[30]](https://blog.srmcorp.com/hs-fs/hubfs/CFPB-WP-Blog-Image%5B30%5D.png?width=829&height=475&name=CFPB-WP-Blog-Image%5B30%5D.png)
Shifts in the regulatory landscape carry significant impacts on banks, credit unions, and the fintech companies that are part of a growing ecosystem. The most-active agency in recent months has been the Consumer Financial Protection Bureau (CFPB). There's little reason to expect the CFPB to slow its pace in 2023, aggressively enforcing existing rules and angling to expand its jurisdiction.
Topics: Open Banking, Fintech, Vendor Contract Negotiation, Bank Vendor Management, Credit Union Vendor Management, BaaS, CFPB
Over the past year, SRM's experts have shared dozens of blogs, providing insight into industry-relevant topics.
We've covered a wide range of themes, including fintech trends, crypto, lending and deposit strategies, critical regulatory headwinds, and ESG programs.
Topics: Fintech, Vendor Contract Negotiation, Interchange, Buy Now Pay Later, Digital Assets, Overdraft, credit card competition act
Budgeting season for 2023 is slowly wrapping up as banks and credit unions forecast revenue opportunities and looming expenses.
Financial institutions are considering future interest rate hikes, regulatory oversight, and increasing personnel and operational costs, among other things. The bigger picture is that client retention and recruitment will be critical to long-term success – invest now to ensure you’re ready to compete.
At SRM, we urge banks and credit unions to take a hard look at third-party contracts as they plan for the new year. There are also other considerations that should be made as you prepare for the future.
This year, we polled some of our experts, asking them to highlight areas that merit extra attention. Here are some highlights from their responses.
Topics: Fintech, Automation, AI, Digital Assets, customer retention, ITM, Staffing
![SRM-Sept2022-BlogImage_Updated[6]](https://blog.srmcorp.com/hs-fs/hubfs/SRM-Sept2022-BlogImage_Updated%5B6%5D.jpg?width=1600&name=SRM-Sept2022-BlogImage_Updated%5B6%5D.jpg)
Banks and credit unions interested in offering Buy Now, Pay Later (BNPL) services should be pleased with the latest report from the Consumer Financial Protection Bureau (CFPB).
Many FIs have been reluctant to dive into the popular consumer offering, largely due to uncertainty over the regulatory environment. SRM asserted in a recent report that banks and credit unions have the experience and tools necessary to handle regulatory scrutiny.
Topics: Payments, Vendor Contract, Buy Now Pay Later, BNPL, CFPB, Credit Cards
![OCC-Order-Blog-Image[52]](https://blog.srmcorp.com/hs-fs/hubfs/OCC-Order-Blog-Image%5B52%5D.png?width=1600&name=OCC-Order-Blog-Image%5B52%5D.png)
Banks and credit unions have a new roadmap for handling fintech partnerships.
The Office of the Comptroller of the Currency (OCC) just issued a written agreement to Blue Ridge Bankshares instructing the Charlottesville, Va., company to improve how it pursues and monitors fintech relationships.
The agreement comes months after the OCC raised issues with Blue Ridge’s ($2.8 billion-asset) proposed merger with FVCBankcorp (the deal was ultimately terminated). While the specific issue was never disclosed, there was speculation it had to do with Blue Ridge’s fintech dealings.
Topics: Payments, Fintech, Vendor Contract, BaaS, Regulators, BSA
![Inflation-Blog-Image[10]](https://blog.srmcorp.com/hs-fs/hubfs/Inflation-Blog-Image%5B10%5D.png?width=1600&name=Inflation-Blog-Image%5B10%5D.png)
Banks and credit unions must prepare for some consumer payments and credit quality turbulence.
Consumer prices rose by an astounding 9.1% by June from a year earlier – a 41-year high – causing the average American to spend roughly $460 more per month than they did a year ago, according to Moody’s Analytics Senior Economist Ryan Sweet.
Inflation has led the Federal Reserve to get aggressive with interest rates, including a 75-basis-point hike earlier this month. There is talk the Fed could opt for an unprecedented 100-basis-point increase in light of the June data.
Rising rates could deal another blow to consumers already facing higher costs for goods.
Topics: Payments, Consumer Spending, Credit Cards, Mortgages
