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CFPB outlines aggregation principles, PayPal exceeds expectations, FIS partners with Citi: Essential Banking News

Oct 23, 2017 11:03:16 AM

In last week's banking news, the CFPB announces an outline of principles for data aggregation and PayPal continues to exceed expectations.

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CFPB Outlines Principles For Data Aggregation

In an announcement last week, the Consumer Financial Protection Bureau (CFPB) outlined 9 principles to guide the consumer data sharing and aggregation market. The announcement "advocates strongly for consumer control of the consumer’s data and transparency" while also calling attention to "the importance of data security and privacy."

Read more at the CFPB

 

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PayPal’s quarter exceeded expectations across the board

After an impressive quarter, PayPal stock is trading at an exceptional rate. This has been a good year for PayPal, and CEO Dan Schulman expounds on the company's focus, leading up to this success: “Putting our customers first in everything we do, enhancing our suite of products and services, and partnering with some of the world’s most popular brands are delivering tangible results.” 

Read more at TechCrunch

 

FIS and Citi bring real-time payments to the corporate treasury

Real-time payments are at the center of bank innovation today, and Citi was at the center of the discussion last week. With their partnership with FIS, Citi is not only reaping the benefits now, but are setting themselves up for more success in the future. Finextra writes, "The connection allows corporate treasury departments of FIS and Citi to manage transaction flows in real-time, increasing cash management and visibility. The collaboration also helps corporate customers to be better prepared for forthcoming open banking and cross-border requirements." 

Read more at Finextra

 

Barclays' US Consumer Business Invests in Personal Financial Management Tool by MX

Barclays makes another move in fintech, investing in a partnership with MX. The PFM tool is the latest technological investment that is paying off big time for the powerhouse brand here in the US: "Launching My Personal Bank is another important milestone in the continued growth of Barclays' consumer business in the U.S., which includes credit cards, online savings accounts, certificates of deposit (CDs), and personal loans." 

Read more at MX

 

A financial health fintech has partnered with Freddie Mac

In what continues to be a global effort to help those in poverty, the Gates Foundation has launched an open source platform capable of supporting secure, digital payments for institutions across the world. Tom Groenfeldt of Forbes writes about their success: "In Kenya, an estimated 194,000 households have moved out of extreme poverty due in part to their access to M-Pesa, a mobile money platform, and users’ ability to save money more effectively."

Read more at Forbes

 

The Five Habits of Successful Data-Driven Financial Institutions

Artificial intelligence (AI) is at the heart of modern bank innovation. Financial institutions are building platforms designed to coach or guide consumers through a personalized financial experience. Though as Jon Ogden writes, without clean and quality data the functionality of AI is limited: "In reality, what gets overlooked is that any product that offers advanced technology is only as good as the foundation of data on which it rests. You can have the smartest chatbot in the world, but if it isn’t built on a structured database it won’t return the right answer. Even simple questions about branch hours and loan rates require the right building blocks."

Read more at The Financial Brand

 

Another way fintech will redefine banking: No more free services

Chris Skinner writes that fintech will make retail banks rethink the current "free" banking model. Specifically, he writes that "fintech companies will force retail banks to end free banking and rethink their whole business model. After all, if the margins and profitability — which have historically been based upon subsidization and cross-sales for increased share of wallet — disappear, the bank will have to do something drastic." 

Read more at American Banker

Thomas Walter

Written by Thomas Walter