BofA's 'productive paranoia,' GSEs' next moves, debt collecters' letdown: Top stories of the week

October 11, 2019 3:54 PM

Ruling cuts short debt collectors' victory lap over CFPB proposal

Consumer Financial Protection Bureau building

Signage is displayed inside the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., on Monday, March 4, 2019. House Financial Services Committee Chair Maxine Waters will hold a hearing this week on the semi-annual review of the CFPB. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

The industry had welcomed the Consumer Financial Protection Bureau plan allowing debt collectors to use electronic communication, but some worry about the effect of a court decision concerning email correspondence.

(Full story here.)

Fannie and Freddie get to keep their earnings. Now what?

Signage stands outside the Freddie Mac headquarters in McLean, Virginia, U.S., on Tuesday, Oct. 1, 2019. Freddie and Fannie Mae will be allowed to boost their capital by billions of dollars to protect against potential losses, a key step in the Trump administration's push to free the mortgage giants from U.S. control. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Allowing the mortgage giants to retain profits resolves a short-term capital shortfall, but how much capital they would need after exiting conservatorship is still the bigger question.

(Full story here.)

Bank of America's AI approach: 'Productive paranoia'

A thorough process for approving experiments with artificial intelligence, clear philosophical principles and diverse human involvement are some of the ways BofA says it's working to ensure AI does no harm.

(Full story here.)

Regulators need new approach to innovation

FDIC Chairman Jelena McWilliams reaches out to tech pros to bring fresh ideas to the agency.

(Full story here.)

LendingClub founder's new firm launches card-loan hybrid product

Upgrade Executives Photo Copyright Noah Berger / 2017

Noah Berger/Noah Berger

Renaud Laplanche, one of the first fintech disruptors, is launching an unusual type of credit product at Upgrade, his new company, that is a cross between a credit card and an unsecured loan.

(Full story here.)

Google exec named CEO of online lender OakNorth

Sunil Chandra's job will be to guide the fintech's international expansion. It says 12 banks are using its small-business lending platform, including three in the United States.

(Full story here.)

Liquidity concerns force banks to get creative with deposit gathering

Many community banks are launching digital banks, more aggressively courting younger customers and abandoning the idea that only primary banking relationships are worthwhile.

(Full story here.)

How BBVA picks its fintech partners

A BBVA logo sits on display outside a Banco Bilbao Vizcaya Argentaria SA bank branch in Madrid, Spain, on Tuesday, July 22, 2014. BBVA, Spain's second-biggest bank, agreed to purchase state-run Catalunya Banc SA for 1.19 billion euros ($1.6 billion) as the government lined up buyers for nationalized lenders. Photographer: Angel Navarrete/Bloomberg

Angel Navarrete/Bloomberg

Susan French, head of product at BBVA Open Platform, discussed the bank's vetting of fintech partners and how it deals with the competitive threat that their products present.

(Full story here.)

Supreme Court ruling could mean more ADA lawsuits tied to bank websites

The court passed up a recent opportunity to clarify confusion about Americans with Disabilities Act requirements for business websites, raising concerns among bankers that they could become an even more inviting litigation target.

(Full story here.)

What's fueling Citizens' westward expansion

Overview of Citizens Financial Group's Western U.S. unit

The Providence, R.I., bank recently installed a new regional head in California to oversee a commercial banking expansion into five western states. The bank says it's trying to craft a successful growth strategy while reassuring investors it isn't overreaching.

(Full story here.)