BankThink

There’s no reason for the central bank to prohibit nonbank financial firms from entering the payments system as long as appropriate rules are put in place to protect against risk.

The bank says regulators want information about its possible role in the money laundering scandal; Kristi Mitchem moves to BMO Global Asset Management.

While the transaction will lower the cost of servicing First Data’s massive debt, the fintech and processing giant will be more complex and ponderous, writes Eric Grover, a principal at Intrepid Ventures.

The Federal Reserve has suggested it could join the market for instant interbank payments, but private-sector entrants would be better.

With a permanent director confirmed, the agency should take steps to establish a small-business data collection rule mandated by the Dodd-Frank Act.

The bloc said the company artificially raised interchange fees in Europe; weather changes that increase flood risks may mean defaults on mortgages.

Those of us who have found ourselves in roles as stewards of the public trust in this sector are finding agreement in a variety of protocols that bridge even the stodgiest savings account with the coolest app-based e-wallet, writes Bryan Woods, president of Spend Inc.

Large financial institutions need to adopt a new mindset to compete with tech startups, one that allows them to take risks and put aside legacy systems.

The question for lawmakers is how to work together to make sure as many people as possible are able to take advantage of the opportunities provided by innovation, writes Brian Tate, president and CEO of the Innovative Payments Association.

Brian Knight at George Mason University says fintechs will be held accountable for legal violations in sandboxes — and banks can use sandboxes, too.