On November 14 the Consumer Financial Protection Bureau (CFPB) announced an inquiry into the challenges consumers face in accessing, using and securely sharing their financial records. This came on the heels of CFPB director Richard Cordray telling a Money 20/20 audience in October that the agency believes consumers should be able to access their financial data and give permission for third party companies to access it as well. The bureau was acting in the wake of high profile cases where banks — including Wells Fargo, JPMorgan Chase and Bank of America — cut off access to third-party sites and apps like Mint.
CFPB RFI Around Consumer Access To Financial Records Draws The Battle Lines Between FIs And Aggregators
Despite all the talk about shrinking government it is relatively rare that a federal agency is eliminated. In 1998 Congress dissolved the U.S. Information Agency, a public relations wing of the government that communicated to 150 nations at the height of the Cold War, with its responsibilities being absorbed by the Department of State. In 1996 Bill Clinton and Newt Gingrich had a rare moment of agreement as they eliminated the Interstate Commerce Commission, which had regulated everything from telephone companies to railroads for more than a century. But the last two decades have been dominated by many more instances where politicians talked a big game about slashing government — particularly plans to dismantle Cabinet-level agencies such as Education, Energy and Commerce — and ran into roadblocks.
On Friday President Donald Trump signed an executive order calling for his administration to review the Dodd-Frank Wall Street Reform and Consumer Protection Act and issued a memorandum to delay — and potentially cancel — the Department of Labor’s Fiduciary Rule.
Treasury Secretary nominee Steve Mnuchin, a former head of Goldman Sachs’ mortgage-backed securities desk, banker, hedge fund manager and film financier, was no doubt a strange choice for a candidate who bashed Wall Street on the campaign trail and warned that Goldman Sachs controlled rivals Ted Cruz and Hillary Clinton. He also represents a sea change for a federal government that has regulated banks more stringently in the wake of the financial crisis and focused on limiting corporate tax avoidance over trimming rates.
Navy Federal Named Best Overall Online Banking Leader By Javelin; BBVA Compass, Citibank, SunTrust and USAA Garner Financial Management Praise
Navy Federal, USAA, Bank of America, Citibank, BBVA Compass, Bank of the West, BMO Harris, SunTrust and PNC lead the pack in the inaugural edition of Javelin’s Online Banking Scorecard, a competitive analysis of the nation’s top 30 retail banks and credit unions. Navy Federal Credit Union earned the 2016 Best Overall Online Banking Leader award while being awarded 67% of the total points possible. Javelin's scorecard assesses more than 200 features offered by FIs across the categories of Financial Management, Money Movement and Customer-First Banking, the latter encompassing personalized guidance from product selection to financial well-being.
CFPB Launches Inquiry Into Challenges Consumers Face In Sharing Access To Their Digital Financial Records
If financial institutions make it difficult for consumers to share access to their digital financial records, they’ll be blocking a new generation of consumer-friendly products and services, warned Consumer Financial Protection Bureau director Richard Cordray at a field hearing in Salt Lake City yesterday.
Wells Fargo Considers New Performance Metrics, Venmo Grows Rapidly: Essential Fintech Reading Oct 15-21
The Hardest Job In Banking?
Emily Glazer of the Wall Street Journal writes that Mary Mack, the head of retail banking at Wells Fargo & Co., must change the sales culture of the firm. In the wake of a settlement with regulators Wells Fargo scrapped sales goals for retail bank employees but the bank has not abandoned cross-selling, efforts to sell multiple product to individual households.
Wells Fargo Scandal Means Renewed Scrutiny Of Big Banks
Lucinda Shen of Fortune writes that the Wells Fargo scandal "could again force regulators to take a deeper look at bank culture. Banks have been increasingly pressured to widen profit margins despite low interest rates and heavier regulation since the financial crisis ... Advocacy groups have also noted aggressive sales tactics, similar to those that led Wells employees to create fake accounts" at other financial institutions.
Mobile Deposit Key To Customer Satisfaction, Wells Fargo Enters Damage Control Mode: Essential Fintech Reading Sept 10-16
Wells Fargo Attempts To Repair Image, Regulator Highlights Risks Of Cross-Selling
The LA Times reports that Wells Fargo will eliminate all sales goals for credit cards, checking accounts and other retail banking products as the bank tries to repair its image. The U.S. Comptroller of the Currency, Thomas Curry, said on Thursday that other banks should review what risks arise from efforts to cross-sell to existing customers. Curry's office was among the regulators with whom Wells Fargo reached a $190 million settlement last week, following claims that it had created two million accounts that customers did not want.