Is the call for regulatory compliance of fintech companies finally being heard? This week’s FIN List looks at the latest in regulatory compliance changes, including possible regulatory compliance scrutiny for fintech firms. Plus, read on about possible TRID changes, cloud insights and the state of IT transformation in 2016.
- Fintech Firms Splintered in D.C. as Regulatory Scrutiny Heats Up. As the burgeoning online lending industry braces for a wave of scrutiny from U.S. policymakers, leading financial-technology firms are scrambling in Washington to figure out who’s a friend and who’s a potential foe. Online lenders helped arrange more than $20 billion of loans in the U.S. last year, and the figure could climb to more than $120 billion by the end of the decade, according to Morgan Stanley research.
- Juggling the Demands of Regulatory Change in 2016. The frantic pace of regulatory change has made it challenging for credit unions to keep up with the latest changes – let alone ensure compliance with existing regulations. After analyzing the latest Banking Compliance Index (BCI) figures, three trends stand out for 2016: 1. The enforcement climate is still hot, and only getting hotter. 2. Many institutions lack compliance with longstanding, fundamental statutes. 3. Agencies are still introducing change at a burdensome pace.
- CFPB: Changes to TRID Coming Soon. In a huge win for the industry, the Consumer Financial Protection Bureau is taking another look at the “Know Before You Owe Rule,” answering calls to make official a lot of the informal guidance given by the bureau. The bureau wrote a letter on Thursday to eight industry trade groups acknowledging their concerns over compliance with the “Know Before You Owe” mortgage disclosure forms and letting them know that the bureau has begun drafting a Notice of Proposed Rulemaking on the rule.
- The State of IT Transformation in the Financial Services. Research has found that while financial services is outpacing other industries in some areas of IT transformation, it’s also lagging behind in others. For financial services organizations, there is no single path to IT transformation. While industry experts believe that overall budgets for IT spending will only increase slightly over the next few years, there is likely to be a continued shift in how those budgets are spent. Doing “more with less” won’t mean doing the same things with less budget.
- PayPal’s Path to Independence: A Tale of Cloud Innovation. PayPal navigated its separation and independence from eBay in a seven-month accelerated transition. On the big day, all systems were go. Learn how the creative use of cloud technologies, and a remarkable degree of employee collaboration, earned the company a 2016 Elite 100 Award in the category of Best Use of Cloud Services.
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