Slideshow 'Call me skeptical, but ...': Comments of the week

Published
  • September 15 2017, 12:00pm EDT

Readers react to Equifax's massive data breach, weigh in on the departure of SoFi's CEO, endorse a new digital identity system, and more.

On the potential for the Equifax breach to be the beginning of the end of banks' dependence on consumer data for authentication:

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On overdraft revenue growing at a time when banks are doing a better job of explaining to customers what they are getting into when they opt in for overdraft protection:

"Let's not kid ourselves into thinking that better disclosures helped increase revenue. It's a service customers want and will pay for. … Funny, didn't the regulators believe once 'better disclosures' were provided, customers would run away from this service?"

Related: Overdraft fee revenue helped, not hurt, by better disclosures

In support of an op-ed calling for the end of screen scraping, a practice that requires consumers to share their online banking credentials with third parties:

"All arguments favoring screen-scraping now give way to a one-word counter-argument: Equifax."

Related: Fintechs' defense of screen scraping is shortsighted

On senators calling for an investigation into Equifax executives' sale of company stock between the time a data breach was discovered and made public:

"Simply not plausible that they would not have known. The lack of a paper trail doesn't mean they are innocent — the watercooler is alive and well. Do their internal procedures call for senior executives to be notified? Every FI I know of would answer 'yes.'"

Related: Senators call for investigation of insider stock sale by Equifax execs

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Agreeing with an argument that the Equifax breach threatens banks' reputations:

"It is bank customers who have been harmed. Due diligence of 3rd party providers is a major regulatory focus, and it is the banks who are passing their customers' sensitive data on to the credit bureaus. I wonder why most banks do not routinely offer credit/identity protection products to their customers as a logical ancillary business. Helps the consumer, leverages consumers' trust in their bank, and maybe generates a little non-interest income."

Related: Equifax breach threatens bank reputations, too

On Mike Cagney's swift, unexpected departure as the CEO of Social Finance:

"CEO's sudden exit spurs big questions about SoFi's future-& these guys want Dep Insurance? We must protect FDIC fund frm non-bks" (via Twitter)

Related: CEO's sudden exit spurs big questions about SoFi's future

On the need for banks to overhaul their authentication systems:

"I would merely add to Your closing hope for banks to catch up, or be rendered obsolete. The rise of competitors with mixed capabilities that hold, preserve and enable liquidity of people's finances also need the regulatory nod, which for now is the singular advantage banks retain. Why else do consumers put up with the annoying outdated authentication procedures? Govts guarantee my money is safe, assures against its loss--it's the primary reason I bank my money vs stash it under my mattress."

Related: Blockchain key to rethinking identity, avoiding next Equifax