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Tech Talk: Fintech regulatory scrutiny, vetting vendors, Baas, and more!

Fintechs fall under regulatory scrutiny
Vetting third-party vendors
Same Day ACH payments are on the fast track
A deepfake detection tool
Leveraging the cloud for a competitive edge
Get BaaS and financial crime prevention
Taking a cautious approach to AI? Maybe you shouldn't
Consumers' growing concerns about data security
Using data to combat the fraud butterfly effect
Spam, Scams & Breaches
Updates, Patches & Alerts
and on the lighter side...

Fintechs fall under regulatory scrutiny
The Dodd-Frank Act gave the Consumer Financial Protection Bureau (CFPB) the power to examine novel financial products it finds risky. Dusting off that previously untapped authority, the Bureau has begun overseeing at least several companies – including one unnamed tech giant. Those companies under scrutiny by the CFPB may be required to undergo agency exams without going through the rulemaking process. Bloomberg has the details.

Vetting third-party vendors
Today's consumers and businesses expect a smooth and seamless digital banking experience, regardless of how big or small their financial services provider is. By partnering with fintech companies, financial institutions can leverage technology to provide an enhanced user experience that gives them a competitive edge. Several key criteria should be incorporated into banks and credit unions' vetting process when selecting a fintech partner. CU Times has the details.

Same Day ACH payments are on the fast track
The exponential rise in check fraud is driving a surge in businesses abandoning paper checks for ACH payments. According to FinCEN, check fraud has almost doubled in the past year. Check fraud accounted for 63 percent of the fraud incidents among the businesses that experienced payments fraud overall. Nacha reports that for the first half of 2023, the value of Same Day ACH payments is nearly $1.2 trillion, up 51.7% from a year earlier. PYMNTS.com has the details.

A deepfake detection tool
With the power to transfer funds anywhere in the world electronically comes great responsibility! Last year, fraudulent bank transfers and payments cost an estimated $1.6 billion. Silicon Valley fintech Effectiv has created a real-time risk and fraud management platform tailored for banks and fintech companies that includes AI-driven tools such as payment fraud detection and onboarding verification, as well as models that can detect simulated behavior. TechCrunch has the details.

Leveraging the cloud for a competitive edge
In today's evolving banking landscape, cloud-based payments are becoming increasingly popular with banks as they look to keep up with customer and regulatory demands while facing rising competition from fintechs. With the acceleration of new payment types entering the market, current legacy systems fall short. Cloud and payments-as-a-service (PaaS), software-as-a-service (SaaS), and banking-as-a-service (BaaS) solutions provide banks with the ability to transform their payment infrastructure without the IT burden. PaymentsJournal has the details.

Get BaaS and financial crime prevention
The Banking-as-a-Service (BaaS) market is experiencing tremendous growth. Cable, a financial crime effectiveness testing platform, has joined the Banking-as-a-Service (BaaS) Association, which represents over 80 percent of current BaaS sponsor banks operating in the U.S.. Cable helps banks and other financial services firms deploy next-level automation and technology for financial crime assurance, testing, and oversight. PYMNTS.com has the details.

Taking a cautious approach to AI? Maybe you shouldn't
FOMO (fear of missing out) is driving the industry to explore artificial intelligence (AI), particularly generative AI – algorithms (such as ChatGPT) that can be used to create new content. While some financial institutions are taking a cautious approach to adopting the technology due to regulatory and other internal concerns, the risks of dismissing the technology far outweigh the risks of engaging with it, says one bank CEO. PYMNTS.com has the details.

Consumers' growing concerns about data security
Fraudsters are becoming increasingly more sophisticated and opportunistic, and consumers are growing increasingly more concerned about fraud and online security. Experian's newly released 2023 U.S. Identity and Fraud Report found that consumers and businesses are keeping fraud and security at the top of their minds amid uncertain economic conditions. Identity theft, stolen credit card information, and online privacy were consumers' top three concerns. Help Net Security has the details.

Using data to combat the fraud butterfly effect
In today's digital banking environment, a single fraudulent attack can disrupt an account holder's entire financial life and have long-term implications. This is referred to as the fraud butterfly effect. To combat this destructive activity, banks are using technology to harness what they know about their account holders and detect fraud faster by analyzing customer behavior across multiple channels. The Financial Brand has the details.

Spams, Scams, and Breaches

Updates, Patches, and Alerts...

See what other current hot cyber and technology topics affecting financial institutions BOL users are discussing in the Technology Forum.

And on the lighter side...

Happy SysAdmin Day! Today we celebrate the System Administrators, aka SysAdmins, IT pros, The “IT guy (or gal)." Whatever name they go by, they are the overworked, under-appreciated, and unsung heroes of IT. If that's you, put on your geeky hat, take a well-deserved break, and have some fun ! Or pass this along to your favorite SysAdmin with a note of thanks for all they do to keep you up and running!

First published on 07/28/2023

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Tech Talk

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