Welcome To
The Bottom Line

SRM Perspectives on Key Industry Trends

CFPB’s Buy Now, Pay Later Stance Should Comfort Banks, Credit Unions

Posted by Paul Davis on Sep 22, 2022 11:21:00 AM

SRM-Sept2022-BlogImage_Updated[6]

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.

Read More

Topics: Payments, Vendor Contract, Buy Now Pay Later, BNPL, CFPB, Credit Cards

Crypto, BNPL, and Regulation: Key Trends to Watch in the Coming Months

Posted by Ben Mrva on Jul 28, 2022 11:14:00 AM

Mid-Year-Trends-2022-Blog-Image

The first half of 2022 was eventful for banks and credit unions, and there’s no reason to expect the pace to slow. Financial institutions must monitor changes to the payments ecosystem while simultaneously dealing with rising interest rates, eroding consumer confidence, and potential cracks in credit quality.

Here’s a quick summary of what the team at SRM sees as the key trends in financial services and how these trends might play out over the balance of the year.

Read More

Topics: Payments, Cryptocurrency, Digital Assets, Overdraft, BNPL, CFPB

Card Fees Back in Washington’s Crosshairs

Posted by Myron Schwarcz on Jun 29, 2022 11:17:00 AM

Card-Act-Blog-Image[28]

Two recent developments are sending a message to credit card issuers that the regulatory and political winds are not blowing in their favor.

Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB), on June 22 issued an advance notice of proposed rulemaking to assess if late fees charged by credit card issuers are “reasonable and proportional,” as required by the Credit Card Accountability Responsibility and Disclosure (CARD) Act.

Chopra’s notice came weeks after longtime card industry adversary Sen. Richard Durbin chaired a Judiciary Committee meeting exploring “excessive interchange fees.” While Durbin advocated for reforms, some of his suggestions would set the industry back by decades, likely ending the ability of small banks and credit unions to offer credit cards and directly harming consumers.

Though the outcome is uncertain, the trajectory is clear. Now is the time for a refresher course on the current rules of the road and for issuers to prepare for any potential changes arising during this period of heightened scrutiny.

Read More

Topics: Durbin Amendment, CFPB, Credit Card Fees, CARD Act, Dodd-Frank Act, Consumer Financial Protection Bureau

Now Is the Time to Explore Distributed Ledger Technology

Posted by Patti Wubbels on Jun 14, 2022 11:07:00 AM

Blockchain-Blog-Image[13]

While a number of financial institutions remain cautious about cryptocurrency, many use the underlying technology for other purposes.

The up-and-down swings of digital assets, and an uncertain regulatory climate, have kept a fair share of banks and credit unions on the sidelines. At the same time, FIs have shown a willingness to embrace distributed ledger technology (DLT) ahead of the volatile crypto market.

Read More

Topics: Fintech, Blockchain, Credit Union Vendor Contracts, Bank Vendor Contracts, CFPB, Distributed Ledger Technology

CFPB Poised to Shake Up Competition for Consumers

Posted by Paul Davis on Jun 8, 2022 10:01:00 AM

CFPB Poised to Shake Up Competition for Consumers

Several initiatives by the Consumer Financial Protection Bureau (CFPB) seem poised to increase competition between traditional financial services providers and fintechs.

An effort to regulate nonbanks has gained support from banks and credit unions. Still, the CFPB’s plan to make it easier for consumers to move accounts will pressure traditional financial institutions to offer more products and better services.

These initiatives are coming when the agency is scrutinizing overdraft and nonsufficient funds (NSF) fees, the CARD Act, and the terms and disclosures of Buy Now, Pay Later (BNPL) offerings – the latter a topic SRM recently wrote a report on.

All signs point to the need for banks and credit unions to buckle up in coming months. These expected changes will likely bring fintech even more into the mainstream and raise the stakes when it comes to recruiting and retaining clients.

Read More

Topics: Payments, Fintech, Regulations, Credit Union Vendor Contracts, Bank Vendor Contracts, CFPB

Content not found

Subscribe to our blog

Recent Posts

Posts by Topic

see all