“Banks Push Back on CFPB Plan to Curb Nonbank Supervision”
Bank trade groups and consumer advocates oppose a CFPB proposal that would slash the number of nonbanks eligible for supervision to 26 from more than 2,600, warning it would tilt the field against regulated banks.
“Payment Players Offer Fraud Fixes to Fed, OCC, FDIC”
Federal regulators received nearly 200 comment letters in response to an RFI on combatting check fraud, including submissions from Early Warning Services, Nacha, and the Financial Technology Association. Recommendations included joint fraud task forces, data-sharing standards, and enlisting telecom and social media platforms in scam prevention.
On this week’s episode of Banking with Interest, House Financial Services Committee Chair French Hill shared his perspective on what regulators can do to combat fraud. He also discussed where the payments sector will be in five years, the latest on the crypto market structure bill, and why he wants to end the Fed’s dual mandate—listen here.
“Frictionless Payments Are a Fraud Factory. Banks Can’t Afford the Tab”
Speaking of fraud, one expert says frictionless payments increase its risks while blurring liability, pressing banks to add guardrails without ruining the customer experience. He urges layered controls and clearer responsibility across the payments chain.
“Banks Flirt With AI Deposits but Fear Dynamic Pricing Backlash”
Banks are using AI to segment customers and inform deposit pricing, but they remain wary of fully dynamic, AI-driven rates due to UDAAP, transparency, and trust concerns. Expect cautious pilots before wider adoption as data quality and explainability hurdles are addressed.
“The Hidden Bottleneck in Winning Commercial Relationships”
The hardest part of winning primary commercial relationships, according to one fintech founder, is getting businesses to move their operating accounts. He says banks that make switching simple and digital can capture stickier deposits and get more value from cross-selling.
“Tokenized Deposits Are Banks’ Answer to the Stablecoin Boom”
Banks should be allowed to issue tokenized deposits as a direct alternative to stablecoins, which are gaining favor under new laws, one attorney writes in this American Banker op-ed. Without clear rules treating deposit tokens as standard bank deposits, he argues that regulators risk giving stablecoin issuers an unfair head start and draining liquidity from the banking system.
“Trump Team Targets the Secret World of Bank Supervision”
Politico’s Morning Money looks at the Trump administration’s efforts to overhaul bank supervision and what that could mean for examiner confidentiality and agency independence.
In Other News
The White House warned of further senior-staff firings in the event of a government shutdown, Delta is upgrading the engines on its planes to curb toxic-fume leaks, and Bain & Co. released its comprehensive annual report on technology, highlighting the advance of AI agents.