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Senate repeals CFPB rule, JPMorgan partners with fintech, Uber launches credit card: Essential Banking News

Oct 30, 2017 2:33:12 PM

Last week the Senate ruling to repeal the CFPB arbitration rule dominated the conversation.

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Senate votes to repeal CFPB arbitration rule 

In a close vote, appealing in the end to Vice President Mike Pence to break a tie within the senate, the Consumer Financial Protection Bureau’s (CFPB) rule banning mandatory arbitration clauses in financial contracts has been repealed. Ian McKendry writes in American Banker about the ruling, "The vote late Tuesday caps a fractious fight between the CFPB and the industry in which it was unclear whether Republicans would be able to gather the necessary support in the Senate. It also marks the financial services industry's most significant legislative victory this year."

Read more at American Banker

 

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JPMorgan turns to tech for deeper data insights

JPMorgan has struck a contract with Mosaic Smart Data to help Chase's fixed income division leverage internal data. Business Insider's Maria Terekhova predicts that other large banks will follow Chase's example in this case and outsource their technological needs. She writes, "As banks increasingly turn to new tech to boost efficiency in data management, we will see more partnerships between big players and startups." 

Read more at Business Insider

 

Uber launches credit card

With help from Barclaycard US, Uber will be launching their own credit card with numerous benefits for customers. Finextra has the details: "From next month, US riders can apply for the card from within the Uber app and get a decision on their credit worthiness within minutes. They can then start using the card for Uber rides immediately, with a physical version arriving a few days later."

Read more at Finextra

 

Two New Digital-Only Options Poised To Disrupt U.S. Banking Ecosystem

JPMorgan Chase and N26, a UK bank based in Berlin, have announced they will be offering a digital-only service. In what has been a quite period for the digital-only disruption, the news has made its waves around the banking community. As Jim Marous writes, this might be its reawakening: "The digital banking competitive marketplace in the U.S. seems to be heating up again, after years of relative inactivity compared to other markets worldwide."

Read more at Financial Brand

 

CFPB’s data-sharing guidelines are a boon for innovation

Regarding the CFPB's outline of data-aggregation principles, Brandon Dewitt, CTO at MX, writes about the announcement and its impact in the lives of consumers: "The result of that inquiry — the CFPB's recently announced non-binding principles on data-sharing — was absolutely the right call. The bureau’s principles made it known that the CFPB is furthering its role as a consumer advocate by permitting bank customers access to their data on the app of their choosing, so long as the process is secure and users have full control over what data does and does not get shared."

Read more at American Banker

 

Banks need to fear Amazon's finance ambitions: McKinsey report

The tech giants of the world are impacting nearly every aspect of their consumer's lives including within financial services. Though small "disruptive" fintechs have the attention of banks, it's important to recognize the real threat might be coming from Jeff Bezos: "As he extends Amazon's reach, the Seattle-based company has had discussions with banking regulators about financial innovation, according to lobbying disclosures reviewed by American Banker. And it already has a small-business lending arm that has doled out more than $3 billion to more than 20,000 of the merchants on its e-commerce platform."

Read more at American Banker

 

Survival of the most adaptable

Chris Skinner was on site in Las Vegas for Money2020 last week. He dove into the discussion and wrote about the most promising technology on the horizon: "Wrapping up thoughts on Money2020, the Vegas show is by far the biggest of this monster event organising company. I’m guessing there were around 15,000 folks there this year, and everything but everything was being covered: AI, machine learning, mobile wallets, core banking, distributed ledger, blockchain, cryptocurrencies and just about every other aspect of making and taking payments." It's a great way to get a sense of what you may have missed.

Read more at The Finanser

Thomas Walter

Written by Thomas Walter