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SEC hacked, CFPB arbitration, and iPhone X: Essential Banking News

This week we look into the implications of the SEC revealing it was hacked and the CFPB's arbitration ruling.

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SEC reveals it was hacked, information may have been used for illegal stock trades

A data breach of any kind is unnerving. Their implications can vary and in the recent case involving the SEC they can be used for illicit trading in the stock market. Renae Merle of the Washington Post has the story: "The latest announcement could hamper the SEC’s efforts to collect more detailed information about stock trades into a central database that could make it easier for the agency to detect market manipulation. Some key Wall Street figures, including the New York Stock Exchange, have warned the database could become a target for hackers."

Read more at The Washington Post


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CFPB arbitration rule is an undeniable win for consumers

In a ruling eliminating mandatory arbitration clauses in most consumer credit and financial agreements, the CFPB seemingly snags a win for consumers. As Dean Clancy points out, "The CFPB’s rule restoring the optional nature of such clauses, for millions of Americans, may be bad news for alleged corporate wrongdoers like Equifax and Wells Fargo, but surely for the victims of such wrongdoing — and for consumers, generally — it is good news indeed."

Read more at American Banker


Equifax Confirms Another 'Security Incident'

In what has already been an infamous security breach, Equifax continues to roll out disturbing news, confirming that earlier this year there had in fact been an additional, unrelated security breach involving a payroll service. Merrit Kennedy writes about the debacle: "Equifax's spokesperson characterizes this second breach as the "March event." However, it appears that the incident in question may have lasted considerably longer than a single month."

Read more at NPR


iPhone X: The Next Wave of Mobile Banking Disruption

The latest and greatest from Silicon Valley might change the game from a mobile banking perspective. As Jim Marous indicates, the iPhone X certainly has new and potentially game-changing technology. The adoption of this tech comes down to the culture of the individual bank: "From one-touch purchases at Amazon, hailing a ride with Uber, or making P2P payments with Venmo, consumers appreciate these ‘new and improved’ digital capabilities that can make their lives easier. The banking industry is no different (albeit somewhat slower to embrace new technologies). Different perspectives on the urgency of innovation have created a gap between ‘early movers’ and self-proclaimed ‘fast followers.’"

Read more at The Financial Brand


Will Using AI for PFM Help Consumers Develop Better Financial Habits? 

The use of AI in fintech is being explored more and more as time passes. Grace Noto of Bank Innovation delves into AI's place in fintech and questions what its impact might be: "As more banks and fintechs turn to AI to provide deeper data analytics and financial insight to their consumers, many are running up against the same challenge: using artificial intelligence to inform a customer how to change their behavior doesn’t guarantee they actually will. However, bringing these more personalized bits of financial data to the customer is a good step forward towards facilitating that change."

Read more at Bank Innovation


How banks and financial institutions are implementing blockchain technology

Blockchain technology, like any other tech in the industry, has seen slow but steady adoption by financial institutions. Its usage varies and as Andrew Meola explains, FIs are exploring each of the ways blockchain technology can be implemented, including the replacement of certain antiquated processes: "Blockchain technology proponents believe it can be used to create secure and convenient alternatives to time-consuming and expensive banking processes. And this theory seems to be gaining traction, as almost every major bank around the world is testing it."

Read more at Business Insider


Series: The Future of Robo Advisors and Financial Advice

To date, Robo Advisors have yet to become the industry standard. There is a reason for this, as Catherine Flax points out. She writes, "You expect your doctor to examine you thoroughly-you wouldn’t gamble on your health by accepting advice based on incomplete information, and you shouldn’t gamble on your finances that way either. Because of this, the Robo-advising community needs to re-think what really helps consumers and innovate in that direction."

Read more at Medium