Current Industry News
OCC report highlights risks arising from innovation and nonbank competition
The OCC’s Semiannual Risk Perspective report focuses on key issues that pose threats to bank safety and soundness and legal compliance. Among such issues discussed in the Spring 2019 report, which generally reflects bank data as of December 31, 2018, are risks arising from financial innovation and new technologies. One of the most significant issues discussed in the report involves artificial intelligence and alternative data, with the OCC highlighting the potential fair lending risks arising from these innovations. It stresses the need for bank management to understand and monitor underwriting and pricing models to identify potential disparate impact and other fair lending issues. The OCC observes that new technologies for evaluating and determining
Multibillion-Dollar B2B FinTech Firms Emerge From Investors’ Pockets
The B2B FinTech market flexed its muscles this week, with investments landing at alternative small business lending, payroll and Software-as-a-Service (SaaS). However, the big news includes the emergence of a new unicorn, as well as a B2B FinTech that — thanks to its latest funding — is now Europe’s most valuable FinTech. Plus, Salesforce announced a new fund to propel funding for the B2B space. The latest in B2B FinTech investments is below.
Colorado Enacts Student Loan Servicer Licensing Law and Maryland Expands Regulation of Servicers
Colorado and Maryland have each enacted legislation regulating student loan servicers. On May 13, Colorado Governor Jared Polis (D) signed into law SB 19-002, and that same day, Maryland Governor Larry Hogan (R) signed HB 594. The Colorado law, SB19-002, is the more sweeping of the two, establishing a licensing requirement for student loan servicers, similar to what has been enacted in California, Connecticut, the District of Columbia, Illinois, Washington, and more recently, New York. Titled the “Colorado Student Loan Servicers Act,” SB19-002 will require servicers of education loans owed by Colorado residents to be licensed by Colorado’s Uniform Consumer Credit Code (UCCC) Administrator. The law also:
Consumer Financial Protection Bureau Launches Financial Education Tool for Active-Duty Servicemembers
WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) significantly expanded its Misadventures in Money Management financial education tool to active-duty servicemembers. Misadventures in Money Management was initially developed for future servicemembers who signed a contract to enlist in the armed forces, but had not yet shipped off to basic military training. Today the CFPB is expanding the program to be available for all servicemembers on active duty, including in the Reserve or the National Guard.