Ripple's bank creep, LendUp's new CEO, regulatory competition: Top stories of the week

January 11, 2019 3:29 PM

Could Ripple's XRP replace correspondent banks? This bank says yes

Despite controversy surrounding Ripple's digital token, one bank is pushing forward to use it in cross-border payments.

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LendUp spins off credit card business, names new CEO

The subprime online lender said Thursday that it will spin off its credit card business into a new entity, Mission Lane. It also named a new CEO to replace its founder, Sasha Orloff.

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Joseph Otting, comptroller of the U.S. currency, speaks after being sworn-in during a ceremony at the U.S. Treasury in Washington, D.C., U.S., on Monday, Nov. 27, 2017. Otting, a former OneWest Bank Group chief executive officer, won Senate approval this month to lead a key U.S. bank regulator, further clearing the way for the Trump administration to roll back Wall Street regulations. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Regulatory competition is hot again — and that's worrisome

Before the financial crisis, federal and state regulators unabashedly pitched their charters to banks as the better choice. That's happening again, despite warnings that such jousting might result in lax oversight.

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Banks shouldn't count on overdraft fees forever

Two trends — competition from challenger banks and the emergence of real-time payments — threaten to eat away at the fees banks collect on overdrafts and bounced checks.

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Senator Elizabeth Warren, a Democrat from Massachusetts, greets attendees during an organizing event in Des Moines, Iowa, U.S., on Saturday, Jan. 5, 2019. Warren took a major step last week toward an all-but-certain 2020 White House run, seeking to become the Democratic nominee to challenge President Donald Trump on a message of economic equality and fighting corruption. Photographer: Daniel Acker/Bloomberg

Daniel Acker/Bloomberg

Warren: Comerica fraud shows need for security fix in prepaid program

The senator wants Treasury to enhance fraud protection in the Direct Express prepaid program — now a partnership with Comerica Bank — when its contract is rebid in 2020.

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PenFed deal feeds bankers' fears of unlimited credit union membership

An "emergency merger" with the troubled Progressive Credit Union gives PenFed — already the nation's third-largest credit union — the ability to welcome any potential member nationwide.

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Representative Joyce Beatty, a Democrat from Ohio, speaks during the Democratic National Convention (DNC) in Philadelphia, Pennsylvania, U.S., on Thursday, July 28, 2016. Division among Democrats has been overcome through speeches from two presidents, another first lady and a vice-president, who raised the stakes for their candidate by warning that her opponent posed an unprecedented threat to American diplomacy. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

House diversity panel a doubled-edged sword for banks

A Financial Services subcommittee planned by Democrats to root out discrimination and expand financial inclusion could put banks on the hot seat, but it could also foster regulatory relief.

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Banks have need for speed in small-business lending

Investments in software can speed up decision-making and help traditional lenders better compete with fintechs for creditworthy customers who want their loans quickly.

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A customer inserts a credit card into Square Inc. device while making a payment in San Francisco, California, U.S., on Tuesday, March 27, 2018. The mobile payment market is anticipated to grow reaching a market value of $4,574 billion by 2023, according to data provided by Allied Market Research (AMR). The growth projections are attributed to an increasing demand for hassle-free purchase of goods and services, as well as an increased preference of consumers toward digital and cashless payments. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Fintechs may finally win charter chase in 2019

Whether it's the OCC's special-purpose charter, ILCs or some other option, observers see fintechs being able to obtain banking powers.

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What banks are losing sight of in rush to upgrade mobile apps

As consumers continue to migrate to banking apps, lenders may be tempted to focus solely on improving that channel. But new data suggests consumers aren't abandoning other platforms just yet.

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