ABA Banking Journal
December 9, 2016

This ABA Banking Journal newsletter is a free, twice-monthly supplement to the ABA Banking Journal magazine intended to help you stay on top of industry and policy news. You can also stay abreast of banking news by visiting aba.com/BankingJournal, home to ABA Daily Newsbytes and other email bulletins.

Industry News
Banks that are proactive in engaging fintech startups will be best positioned to deliver fintech solutions to their customers in a secure environment—and become the Amazon-style universal platforms of the future. (ABA Banking Journal)
 
Millennials' lives are an open book on social media, but when it comes time to hand over information to authenticate themselves to conduct a financial transaction, that door slams shut. Millennials expect technology to intelligently know who they are, with any investigative work done on the back end. Regulators expect banks to know that the transactions they are authorizing aren’t for bad guys or deadbeats who can’t pay them back. (PYMNTS.com)
 
In a major break with industry tradition, one of the country’s largest independent mortgage companies wants to free the masses from mandatory escrow accounts and let borrowers go DIY. Michigan-based United Wholesale Mortgage, which has a network of 7,000 participating brokerage firms nationwide, has begun offering mortgages with no requirement for escrow accounts—and no penalty for the privilege. (Washington Post)
 
QwickRate
Verint Systems
When it comes to corporate treasury management, the only constant is change. From the rise of fintech, blockchain technology and mobile banking, many of the challenges corporate treasury professionals face when working with banks continue to develop as regulations evolve. So what advice do corporate treasurers have for their counterparts in the banking industry? (ABA Banking Journal)
 
Visa and MasterCard yesterday pushed back the date when liability for fraudulent transactions at gas pumps shifts to the party not equipped with EMV chip technology. Previously scheduled to take effect in October 2017, the shift will now happen in October 2020. (ABA Banking Journal)
 
The newly updated Citi Mobile App for iPhone combines banking, wealth management, and money transfer services along with new authentication features to provide improved security, the company said. It’s a service that’s only available to the bank’s upper crust clientele who have the Citigold account. (TechCrunch)
 
iGen Is Coming. Prepare Now.
Harland Clarke
The first wave of iGen (aka Generation Z) turns 21 in 2018. Their relationship with technology, combined with the expectations this relationship has fostered, poses big challenges for financial institutions.
Learn More
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Policy News
Immediately after the National Credit Union Administration’s publication in the Federal Register of a controversial final rule further expanding the already loose fields of membership from which federal credit unions can draw their customers, the American Bankers Association filed a lawsuit in federal court seeking to overturn the rule. (ABA Banking Journal)
 
Online credit companies and paperless lenders would be able to get federal charters to do business nationwide under a plan outlined by the Office of the Comptroller of the Currency. But such companies would also be examined regularly and be held to strict national bank standards. (Reuters)
 
The Dec. 14 announcement by the Federal Open Market Committee will be of particular interest, not only for what it says about any change in interest rates, but also for its signals about the path ahead. Here are five things that are likely to emerge from the statement by the Federal Reserve’s policymaking committee and the ensuing press conference by Fed Chair Janet Yellen. (Bloomberg View)
 
Computer Services Inc
Thomson Reuters
New York Fed President William Dudley said on Monday there are benefits of having automatic fiscal rules for the U.S. Congress even though he has long resisted legislation that would impose similar policy rules on the country's central bank. Dudley, an influential Fed policymaker, was asked to defend that position after a speech in which he waded deep into the debate over what policies the Trump administration should pursue next year. (New York Times)
 
A bill that would change the federal standard that determines whether banks pose widespread economic risks passed the House last week largely along party lines. The bill passed 254-161 with few Democrats backing it. The meager bipartisan support indicates Democrats are digging in ahead of an expected fight over Dodd-Frank’s future in 2017. (The Hill)
 
Change at the Federal Reserve could come quickly with President-elect Donald Trump's team pledging to promptly fill high-level central bank jobs and roll out a tax and fiscal plan that could rewrite policymakers' core economic assumptions. Fed officials already say their plan to gradually increase interest rates may need to be accelerated to accommodate the new administration's economic proposals, which could push inflation higher. (Reuters)
 
New Year, New Growth!
D+H
With 2017 here, banks are strategically planning how to reach new audiences, grow market share, and stay competitive. Is your core banking platform helping or hindering your progress? Download the free ebook, Digital Growth: The Paradox of Legacy Platforms, to learn more about the current state of digital banking and why banks are changing cores.
Learn how.
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