ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Community Banking

Fintech, Customer Experience Key Concerns for Fed Advisory Council

November 28, 2016
Reading Time: 2 mins read

Members of the Federal Reserve’s Community Depository Institutions Advisory Council — which includes several American Bankers Association member bank CEOs — raised concerns over the uncertain regulatory environment for innovation and bank-fintech partnerships and over growing regulations that directly harm the customer experience, according to minutes of the CDIAC’s last meeting released by the Fed.

The council said that “regulatory uncertainty is a major challenge for banks seeking to adopt innovations or pursue fintech partnerships,” adding that “the risk aversion among regulatory agencies can be reflected in costly requirements that outweigh the advantages of innovation.” Council members called on the banking agencies to work together to keep innovation from happening outside of insured depository institutions and to promote a level supervisory playing field for banks and nonbanks.

While regulatory burdens have continued to increase, the CDIAC told the Fed governors that newer regulations are now significantly affecting the customer experience — in particular the TILA-RESPA integrated disclosures and customer due diligence rules, which “have meant a sharp deterioration in the customers’ experience,” they said. “If the ultimate result drives these customers to alternatives, such as marketplace lenders and shadow banks that have become easier to deal with, not only will the institutions lose business, but the Federal Reserve System will also suffer in its ability to influence monetary and economic conditions.”

After the election, there are now eight states where recreational marijuana use is permitted by state law and 28 states where medicinal use is permitted. The expansion of marijuana use poses challenges for banks in these states, which are subject to federal laws prohibiting marijuana use. “When it comes to banking services for emerging marijuana businesses, frankly, community institutions are at a loss,” the CDIAC members said.

They asked banking regulators for more and clearer guidance that would touch on — among others — whether banks that serve pot businesses will lose access to their Fed accounts, what kinds of onboarding and ongoing monitoring is necessary for marijuana-related customers and what responsibilities banks have related to tax collections and payments.

ADVERTISEMENT
Tags: FintechKnow your customerMarijuanaRegulatory burdenTILA-RESPA integrated disclosures
ShareTweetPin

Related Posts

OCC allows Texas banks affected by flooding to close

OCC allows Texas banks affected by flooding to close

Newsbytes
July 7, 2025

The OCC said that it expects that only those bank offices directly affected by potentially unsafe conditions will close and should make every effort to reopen as quickly as possible.

The ever-expanding role of chief risk officer

The ever-expanding role of chief risk officer

Human Resources
July 7, 2025

'A new era has emerged in which CROs faced greater nonfinancial risk amid pressure to boost the bottom line.'

U.S. Bank survey: Small-business owners focus on succession planning

U.S. Bank survey: Small-business owners focus on succession planning

Newsbytes
July 6, 2025

The need for small-business owners to make long-term plans is reinforced by their day-to-day worries. Respondents reported top economic stressors as the economic environment; inflation and increased costs; competition; fraud or cybersecurity threats; and obtaining funding to support...

ABA files amicus brief urging Eighth Circuit to reverse district court’s dismissal of NSF fee lawsuit

FDIC report: 97% of supervised institutions rated satisfactory or better for consumer compliance

Newsbytes
July 6, 2025

The report includes a summary of the overall consumer compliance performance for FDIC-supervised institutions in 2024, a description of the most frequently cited violations, and an overview of consumer complaint trends. The last report was issued in spring 2024.

ABA, associations urge lawmakers to finalize deal on debt ceiling

Updated: President signs ‘big beautiful bill’ including numerous ABA-backed provisions

Ag Banking
July 3, 2025

Included in the bill were several ABA-supported tax provisions related to banks, including a modified version of the ABA-advocated ACRE Act and the permanent extension of the Section 199A pass-through deduction rate of 20%.

Factory orders increased in May

Economy
July 3, 2025

New orders for manufactured goods in May, up five of the last six months, increased $48.5 billion or 8.2% to $642.0 billion, the U.S. Census Bureau reported today. This followed a 3.9% April decrease. New orders for manufactured...

NEWSBYTES

OCC allows Texas banks affected by flooding to close

July 7, 2025

U.S. Bank survey: Small-business owners focus on succession planning

July 6, 2025

FDIC report: 97% of supervised institutions rated satisfactory or better for consumer compliance

July 6, 2025

SPONSORED CONTENT

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025

PODCASTS

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.