banking-and-finance

Big data poses big problems for banks, experts say
Risks to security and privacy cited as products and services develop rapidly

Minnesota Rep. Tom Emmer says big data systems generate “astounding” amounts of data. “This is the future, and there’s no going back from here,” he said at a Nov. 21 hearing. (Bill Clark/CQ Roll Call file photo)

The financial services industry’s use of big data and data aggregation tools has the potential to benefit millions of consumers but also could disproportionately affect the privacy and security of vulnerable populations.

That’s the take of experts who testified to the House Financial Services Committee’s Task Force on Financial Technology last month, hoping to convince lawmakers that more attention is needed on the issue.

Banks see Fed payments proposal opening door to fintech rivals
Banking industry pushes for tight rules on companies moving into banking-like services

Prompted by the Federal Reserve’s plan to build an instant payment system, banks are pushing for tight rules on tech firms moving into banking-like services. (iStock)

A plan by the Federal Reserve to build its own network to transfer funds quickly has pitted technology firms seeking a foothold in the financial sector against banks that have traditionally dominated the payments business. 

Tech firms see the new payment system as an opportunity to get into the payments business, and banks, facing a new rival, are pushing for tight rules on companies moving into banking-like services, according to advocates on both sides of the issue.

Road ahead: Public impeachment hearings begin
Senate set to confirm new Homeland Security secretary

The first open impeachment hearings in over 20 years begin on Wednesday. (Bill Clark/CQ Roll Call file photo)

The public phase of the House impeachment inquiry begins this week, with three witnesses set to air concerns Wednesday and Friday that President Donald Trump attempted to tie Ukrainian military aid to an investigation of former Vice President Joe Biden, a potential Democratic rival in 2020.

Much of the attention on Capitol Hill will be focused on the House Intelligence Committee as it opens up to televised questioning and testimony an investigation that so far had been conducted in a secure closed-door facility in the basement of the Capitol.

Fintech Beat explains how open banking is poised to revolutionize financial services
Open Banking 101, Ep. 28

Open banking is shaking up financial experiences for customers across the globe (iStock).

Open banking is set to shake up financial experiences for customers across the globe, enabling customers to allow third parties to access financial information needed to develop new apps and services. Fintech Beat sits down with the head of policy at Plaid, a unicorn fintech sitting in the middle of the revolution, to discuss the process of information sharing and how regulation shapes it.

Fintech Beat and FRT team up to cover all things fintech in DC
Fintech Beat, Ep. 27

An attendee at Fintech Week 2019 asks a question during a panel. (Photo by CQ Roll Call)

Brad Garlinghouse speaks to Fintech Beat about all things crypto
Fintech Beat, Ep. 25

Brad Garlinghouse (left), CEO of Ripple, sits with Chris Brummer, co-founder of Fintech Beat, at last week's Fintech Week. (Photo by CQ Roll Call)

 

Brad Garlinghouse, CEO of Ripple, sits down with Fintech Beat's Chris Brummer about the state of his company, XRP, Facebook's Libra, Cryptocurrency, and the vast universe of the regulatory unknown.

Senators seek GOP support for bill to crack down on anonymous shell companies
Bill seeks to make it harder for criminals and terrorists to hide assets and launder money

Senate Banking Chairman Mickael D. Crapo, R-Idaho, and ranking Democrat Sherrod Brown of Ohio say they are working on a version of the bill they hope can gain more GOP support than its House counterpart. (Tom Williams/CQ Roll Call file photo)

After only 25 House Republicans voted for passage of a bill that would curb the use of anonymous shell companies, the bipartisan drafters of a Senate version are negotiating tweaks designed to win more GOP support.

The House on Tuesday voted 249-173 to pass its version of the bill, sponsored by Democratic Rep. Carolyn B. Maloney of New York, after adding the text of another bill from Democratic Rep. Emanuel Cleaver of Missouri that would update the nation’s anti-money laundering laws.

Zuckerberg threatened with Facebook breakup
At hearing, lawmakers press founder and CEO over Libra cryptocurrency plan

Mark Zuckerberg arrives to testify at House Financial Services hearing on its cryptocurrency proposal. (Bill Clark/CQ Roll Call)

Duo seeks to bridge information divide in fintech industry
Group calls for using data to achieve better credit access

Kelly Thompson Cochran, deputy director of FinRegLab, left, and Melissa Koide, CEO of FinRegLab. The startup research group is credited with drawing attention to fintech's ability to improve Americans' lives. (Caroline Brehman/CQ Roll Call)

When a diverse coalition, including big banks and a civil rights group, this summer called for speedier deployment of cash-flow data to widen Americans’ access to credit, it was a little-known startup research organization that brought them together.

FinRegLab is a new Washington research group led by two women with deep ties to the financial technology industry as well as to Capitol Hill. They are credited with drawing attention to fintech’s ability to improve Americans’ lives. 

Blockchain technology may help streamline the flow of $550 billion dollars this year
Fintech Beat, Ep. 24

Remittances are poised to grow to $550 billion this year, making them the single biggest source of external funding for recipient economies, according to the World Economic Forum. More money is pumped into developing countries this way than by direct investment. But it's often costly and inefficient. Fintech, specifically blockchain technology, may be able to help.