'Longing for the Loan Sharks': Comments of the Week
November 13, 2015 7:30 AM
American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and our social media platforms.
In response to a story about an ad portraying the Consumer Financial Protection Bureau as a Stalinist nightmare:
"The CFPB has added about 15 days to the processing time, added about one inch to the thickness of the file, increased the cost of making the loan about $400
and made even the most seasoned mortgage lenders afraid of fines and penalties for very trivial errors. With help like this, consumers should be longing for the loan sharks to return."
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The story about the anti-CFPB ad also drew this comment coming to the agency's defense:
"Three cheers for Warren and the Consumer Financial Protection Bureau. I'm completely disgusted with the lack of ethics in our countries' financial institutions."
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On the suggestion that the real banking threat is old core systems rather than new fintech companies (via <a href="https://twitter.com/SpirosMargaris/status/664777880736518144" target="_blank">Twitter</a>):
"#LegacySystem kills banks or at best slows them so much down that the race is over before it starts."
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On the need for banks to fix their legacy core systems in order to compete digitally:
"While AML and KYC may be costly, keeping branches in expensive real-estate is probably more so - especially when customers do more through virtual channels and visit less. Fascinating!"
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Responding to the need to update core systems to compete in a digital world:
"Bigger question: are the cores modernizing to exceed the needs of banks or are they simply content to live well off of the legacy systems and contracts?"
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In response to an argument on how the bank de-risking trend obstructs humanitarian work:
"We have moved from a system that was designed to track the movement of money to a system that is forcing the money out of the legitimate banking system and into the shadows where it is almost impossible to track it."
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