ABA Newsbytes: 'Don't Reward CFPB's Misleading Data' on Card Rewards

The CFPB’s use of consumer complaints in its report on credit card rewards cherry-picks data and presents a misleading picture, ABA SVP Tom Rosenkoetter writes in an ABA Viewpoint published today. “The report is another example of biased research based on a flawed methodology and designed to support a predetermined and politically motivated conclusion,” he said. Rosenkoetter points out that in its May report—published to coincide with a public event on airline points programs—the CFPB referenced just 39 specific complaints from 2016 through 2023. The CFPB’s complaint database had a little over 1,200 complaints related to credit card rewards in 2023, which accounts for 0.0008% of all rewards credit cardholders. “The bureau’s research methods are not transparent, and the sweeping conclusions it draws regarding ‘unfair, deceptive and abusive practices’ in the credit card market based on the unverified complaints of an extremely small number of cardholders—many of which were addressed voluntarily by the issuers—is meritless,” he concluded.

Read the article.

ABA Banking Journal Podcast: Building Successful Careers in Bank Risk and Compliance (Part 2)

ABA podcast

The latest episode of the ABA Banking Journal Podcast—sponsored by Alkami—features the second part of a two-part conversation with Greg Imm, who recently retired as chief compliance officer at M&T Bank, and David Kelly, retiring chief risk officer at Denver-based FirstBank. At this week's ABA’s Risk and Compliance Conference in Seattle, Kelly was awarded the Distinguished Service Award for Risk, and Imm was honored with the Distinguished Service Award for Compliance. In part two, Kelly and Imm discuss the role of technology in the compliance and risk disciplines, how they hire and coach talent, and their involvement with ABA and other professional development providers over their careers. Listen to the episode.

CISA NEWS: DSU wins a Google Clinics grant!

cisa

A $1M grant for free digital security services. The Clinic will enhance cybersecurity for small businesses, local and state governments, and critical infrastructure partners by identifying vulnerabilities and recommending actionable, low-cost improvements. A great opportunity for small & medium sized businesses. Read full article.

ABA Newsbytes: Fed's Bowman: Regulators Must Be More Open to Banking Innovation

June 17, 2024
Financial innovation must be a core regulatory priority, with regulatory and supervisory resources and attention focused on building a policy framework that permits responsible innovation to flourish, Federal Reserve Governor Michelle Bowman said. Speaking yesterday at a financial technology conference in Austria, Bowman said that regulators’ initial response to innovation in the banking sector “is not one of openness and acceptance but rather suspicion and concern.” Some skepticism is understandable, “but it is incumbent on regulators to fight the temptation to say ‘no’ and resist new technology and instead focus on solutions,” she added.“I would suggest that adopting a posture receptive to innovation requires a shift in regulatory approach,” Bowman said. “The current temptation is to pre-judge financial innovation and to take a harsh view. But this resistance approach carries significant risks. One of the most important risks is that financial innovation stagnates or is pushed out of—and kept out of—the banking system. ... Ultimately, this approach could lead to a banking system that may be safer and smaller but also much less effective in providing banking products and services to support the U.S. economy.”

Bowman also suggested that regulators could promote innovation through transparency and open communication. “This includes providing clear guidance to banks and the broader public, incorporating innovation into the regulatory agenda in a comprehensive way, and encouraging interaction between industry and regulators,” she said. “This industry–regulator interaction must allow for feedback and information sharing throughout the innovation life cycle and incorporate regulatory feedback on innovation.” Read Bowman's remarks.

2024 Digital Innovations Conference

August 27, 2024 | Sioux Falls

Technology and innovation have been transforming financial services since long before artificial intelligence and iPhones, and your role as an IT professional is ever-changing, especially in today’s environment. The SDBA Digital Innovation’s Conference is designed to provide support as you keep on top of technology trends, navigate the business of banking, and build and sustain your bank’s technology strategy—all to improve access and better serve your customers. This conference will provide you with an opportunity to learn from industry experts, network with IT colleagues, and visit exhibitors to see and experience the latest in products and services.

Information & Registration

2025 Scenes of South Dakota Calendar

Submit your photos TODAY!

The South Dakota Bankers Association is creating a customized calendar from photographs of South Dakota submitted by South Dakota bankers, their family members and customers. These calendars are exclusive to SDBA member banks and make a great gift for your customers!

If you are an amateur photographer and would like the opportunity to have your creativity displayed in homes and businesses across South Dakota, this is your chance! Send us your photos of farms, barns, agricultural activities, historical South Dakota locations, county fairs, carnivals, parades or festivals, fall colors, winter snowfalls, spring flowers, or summer fun. Any photo that shows the history and beauty of the great state of South Dakota qualifies.

All photos submitted will be judged and the top photos will be featured throughout the 2025 Scenes of South Dakota calendar.

Entry Deadline: July 31, 2024

Submit your photos here!

2024 SDBA IRA School | September 17-19, 2024

Ramkota Hotel, Sioux Falls

Registration is OPEN for the 2024 IRA School in Sioux Falls on September 17-19, at the Ramkota Hotel.

IRAs are one of the most complicated areas of bank personnel responsibility. Working with them is a process and must begin with a strong foundation. This IRA school can provide such a foundation through an extensive curriculum, covering both new and current IRA material, along with previous topics covered at the school that will be expanded on. This program is the quickest, easiest, and most comprehensive coverage of IRAs and HSAs.

Hotel block will release on August 19, 2024.

Information and Registration

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Question of the Week

Q: Does FinCEN’s new beneficial ownership information (BOI) rule impact a bank’s existing BOI requirements, specifically as it pertains to those entities that are “exempt” from BOI reporting?

A: FinCEN's BOI Reporting Rule (31 CFR 1010.380) and FinCEN's BOI Requirements for Legal Entity Customers (31 CFR 1010.230) are two separate, though conceptually related, regulatory requirements. As such, a bank must still establish and maintain written procedures reasonably designed to identify and verify beneficial owner(s) of legal entity customers and include such procedures in its anti-money laundering compliance program. Certain entities are exempt/excluded from the definition of "legal entity customer” (Exclusions from the definition of Legal Entity Customer) and there is overlap with the entities that are exempt from being “reporting companies” under the BOI rule (https://www.fincen.gov/boi-faqs#C_2), but ultimately, the BOI rule will not impact a bank’s current obligations for identifying and verifying beneficial owner(s) of legal entity customers.

Learn how to put compliance management solutions from Compliance Alliance to work for your bank, by contacting (888) 353-3933 or [email protected] and ask for our Membership Team.

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