Latest news with #AmericanBankersAssociation
Finextra
23-05-2025
- Business
- Finextra
Industry groups call on SEC to ditch cyber disclosure rule
A coalition of US financial trade associations are calling on the Securities and Exchange Commission to rescind its cyber incident disclosure rule, claiming that it endangers victims. 0 The rule, which came into force two years ago, requires public companies to disclose material cyber incidents within four business days. At the time, then SEC chair Gary Gensler said the rule would "benefit investors, companies, and the markets connecting them". However, industry players have chaffed at the added cost and complexity of the rule, prompting the Bank Policy Institute, American Bankers Association, Independent Community Bankers of America, Institute of International Bankers, and Securities Industry and Financial Markets Association to file a petition. Contrary to protecting firms and investors, the rule puts cyberattack victims at greater risk and undermines the SEC's primary goal of protecting investors, say the associations. By requiring public companies to prematurely disclose breaches before the vulnerability has been remediated, the SEC risks further harming victims, they say. The rule also puts a strain on national security and law enforcement resources, creates market confusion, and chills internal communications. In addition, the petition argues that the rule actually gives ransomware groups a tool to extort victims, citing the example of the AlphV gang reporting its own victim, MeridianLink, to the SEC as a ransom payment extortion tactic. 'These requirements impose additional risks, cost and complexity on SEC registrants, undermining the SEC's mission to facilitate capital formation, while also failing to generate the type of decision-useful information which would advance the SEC's mission to protect investors,' write the groups.
Yahoo
14-05-2025
- Business
- Yahoo
The future of banking: Advice for modern leaders
Technology is fundamentally changing how banks operate and serve customers. Customers now expect seamless digital interactions with their banks. They want instant access to their accounts, easy-to-use interfaces and fast customer service. The American Bankers Association recently reported that 55% of US bank customers are using apps or phones as their top options for managing their banking needs. This marks the highest percentage of mobile users since the group began polling Americans in 2017. Digital banking channels allow for more efficient transactions, personalised services and improved customer experiences. But as technology continues to reshape financial services, banks must adapt to meet evolving customer expectations while maintaining trust and security. This transformation presents both challenges and opportunities for banking leaders. While experienced leaders bring decades of industry insights, technological literacy, innovative thinking and the ability to reimagine traditional business models are necessary to keep pace in today's financial landscape. The risk of not innovating is high – losing customers to more technologically advanced competitors. If you haven't started these discussions with your team, the time is now. Here's a look at a few strategies modern leaders are evaluating to build scalable products and long-term customer loyalty. While global technology spending in banking has continued to increase each year, it isn't always easy to quantify the net benefits, according to McKinsey. This means banks must allocate investments strategically to prioritise ensuring value creation drivers and take the time to define strategic investment themes such as improving the customer experience or boosting operational efficiency. Some initial considerations on spending could include: Enhancing protection against cybersecurity threats, which are increasing in frequency and sophistication. Focus on creating intuitive, secure digital platforms that meet customer needs. Exploring ways to leverage data analytics to gain insights into customer behavior and preferences. Use these insights to create personalised products and services. Experimenting with AI and automation to increase efficiency and employee satisfaction. Integrating GenAI across a broader risk or quality control process could deliver 75% productivity gains highlighted by KPMG in a recent report. Some leaders believe a bank must own an entire customer ecosystem or platform, but this is a dated school of thought. Leaders must put their customer needs at the centre and understand who they can collaborate with to solve the problem together – building a stronger, scalable ecosystem for the future. Partnering with, or even acquiring, fintech companies offers a great way for banks to access innovative technologies and stay competitive. These partnerships can help banks offer new services and reach new customer segments. Take, for example, embedded finance. Juniper Research projects the global market for embedded finance will more than double between 2024 and 2028, growing from $92bn to $228bn. This solidifies just how much consumers are seeking seamless and convenient banking experiences. In the use case of banking-as-a-service models, a bank can offer its experience, compliance and stability, while a fintech can bring its nimble and cloud-native development approaches to the table. A partnership here would enable unmatched speed to market. Despite the push toward digitalisation, human interaction remains crucial – especially in community banking. While technology can help handle routine matters, people can address complex situations requiring empathy and creativity. Many customers still value these face-to-face conversations for complex financial decisions or problem-solving. The challenge for banks is to balance digital efficiency with personal service. Branch networks continue to play a role too, but their function is evolving. Instead of routine transactions, branches are becoming trusted centers for financial advice and relationship-building. Staff need new skills to provide high-value services that complement digital offerings. While responding to immediate market pressures, it's important for leaders to keep sight of long-term strategic goals and the bank's core values. Banking leaders must guide their organisations through digital transformation with a clear vision and a commitment to serving customers' evolving needs. This requires a leadership approach that can honor generational knowledge, technological literacy and forward thinking as organisational strengths. Learning from the past helps banks better inform the future – striking a balance between innovation, stability and prudent risk management. By embracing technology while maintaining the trust and personal touch that have long been hallmarks of banking, leaders can position their institutions for success in the years to come. The future of banking lies not just in adopting new technologies, but in using those technologies to create more value for customers and society, such as through strategic investments in fintech services. Banks that can achieve this balance will thrive in the digital era of financial services. Peter Stenehjem is CEO of First International Bank & Trust "The future of banking: Advice for modern leaders" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-05-2025
- Business
- Yahoo
TD Bank closing almost 40 branches in US, including some in Florida. Here's what to expect
TD Bank is closing 38 locations in about three weeks, including three in Florida. Sites slated for closures will no longer be in business after June 5. At the same time 38 banks will be closing, TD Bank opened three new locations. None were in Florida. "We are committed to making this transition as smooth as possible for our impacted customers and colleagues and look forward to serving them at one of our over 1000+ TD Bank locations or through our digital banking products and services," a TD Bank spokesperson told USA Today. TD Bank locations that will be closed June 5 are located at: Daytona Beach, 1590 South Nova Road Lake City, 160 NW Main Blvd. Miami Beach, 500 Collins Ave. TD Bank said it currently has 167 branches in 100 cities across Florida. The company's map shows no branches in the Panhandle but extending along the Florida peninsula from Live Oak and Jacksonville south to Naples and Homestead. ➤ See TD Bank locations across Florida More than half of U.S. consumers — 64% — do their banking via mobile apps, according to the American Bankers Association. In 2024, 8% of Americans go to a branch office, although the number is higher — 13% — for baby boomers. But if you're among those who prefer to go into a local branch to do your banking, Kiplinger offered this advice: Embrace online banking: Just like the pandemic forced millions to try online shopping, now may be the time to try online banking, "especially if you live in a rural area or small town where your bank is closing and your options are limited." Ask for help to get started if you need to. Rely on ATMs: If other branches of your bank are available where you live, you can still use the ATMs at those locations. You won't get charged for using an ATM owned by your bank, and you can make deposits and withdrawals from the screen. Use a different bank branch: Don't want to use the ATM? Just like above, if your bank has other branches where you live, you can use one of them. You may have to travel farther but the bank itself is the same. Search for an alternative bank: "If all else fails, you can always switch to another bank that caters to retirees or consider moving your money to a credit union," which are tied to a community. TD Bank agreed to pay over $3 billion in penalties after becoming the largest bank in U.S. history to plead guilty to federal money laundering crimes in 2024. "TD Bank chose profits over compliance in order to keep its costs down," U.S. Attorney General Merrick Garland said during a press conference at the time, noting TD was the largest bank to admit to violating the Bank Secrecy Act. Contributing: Jonathan Limehouse, USA Today This article originally appeared on The Daytona Beach News-Journal: TD Bank closing 38 branches, 3 in Florida. Advice if your branch cut
Yahoo
07-05-2025
- Business
- Yahoo
Treasury's Bessent: Private credit surge underscores need for bank deregulation
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Dive Brief: Treasury Secretary Scott Bessent on Monday emphasized the Trump administration's aim to pursue deregulation for financial institutions, pointing to private credit's rise as a sign banks have been overly burdened in recent years. Bessent referred to private credit as an 'incredible' element of the capital markets, but said 'the growth of private credit tells me that the regulated banking system has been too tightly constrained,' Bessent said Monday at the Milken Institute Global Conference in Los Angeles. 'The regulators are aligned,' and will be 'safe, sound and smart and redoing regulated financial entities,' Bessent said. Dive Insight: Last month, at an American Bankers Association summit, Bessent said the Treasury Department 'intends to play a greater role in financial regulation,' as the Trump administration seeks to ensure bank regulators fulfill their statutory mandate 'consistent with his priorities.' The Financial Stability Oversight Council is one potential forum for that bigger role, he noted. 'President Trump tasked me with helping him choose the leaders for the financial regulators,' Bessent said Monday. Those new appointments include Federal Reserve Gov. Michelle Bowman as the administration's pick for vice chair of supervision, as well as new heads of the Office of the Comptroller of the Currency, Federal Deposit Insurance Corp., Securities and Exchange Commission and Commodity Futures Trading Commission, he said. Their alignment is the key to making financial deregulation a reality, he indicated. Last month, Bessent cited more tailored regulation for community banks – which Bowman has advocated for – and refocusing bank supervision on material financial risk as reform priorities. Bessent's comments followed a Wall Street Journal opinion piece Sunday, in which he wrote that the Trump administration wants to enhance Americans' access to capital 'by easing undue compliance burdens on community and other small banks, which play a crucial role on Main Street by providing loans for cars and homes.' Bessent spun the administration's trade policies, tax reform efforts and deregulation agenda as a three-prong strategy. 'Trade, tax cuts and deregulation aren't stand-alone measures but interlocking parts of an engine designed to drive economic growth and domestic manufacturing,' he wrote in the op-ed.
Yahoo
26-04-2025
- Business
- Yahoo
Illinois AG, Durbin defend state card fee law
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Banks and credit unions seeking to block an Illinois law banning interchange fees on taxes and tips are misreading U.S. banking laws, argued the state's attorney general, a coalition of merchants, and U.S. Senator Richard Durbin in briefs defending the state's fee law. Illinois Attorney General Kwame Raoul filed motions Wednesday opposing the banks' bid for summary judgment and requesting that U.S. District Judge Virginia Kendall instead grant the AG summary judgment. Durbin, who authored the Durbin Amendment to cap debit card fees, filed his second amicus brief in six months Wednesday in a federal lawsuit banks brought last year to block a 2024 Illinois law that bans card interchange fees on the sales tax and gratuity portions of card transactions. The Illinois law is set to take effect July 1 and has inspired multiple other states to pursue interchange fee bans on tips and taxes. The plaintiffs – four trade associations representing banks and credit unions – sued in August arguing that federal law preempts Illinois' effort to remove sales tax and gratuities from the transaction amount used to calculate the interchange fee. In December, Kendall granted a partial injunction of the law for national banks and federal savings associations. In their lawsuit, filed in Chicago, the groups, including the American Bankers Association and the Illinois Credit Union League, said the new law 'would not only throw well-operating payment card systems into chaos, it would also undermine the significant benefits, safety, and security that payment card systems provide to all participants.' Banks and card networks, such as Visa and Mastercard, say the fees fund investments in payment systems and fraud prevention, but retailers argue that card swipe fees have increased too much and become overly burdensome. The bank groups filed a motion last month requesting the court grant summary judgment, with opposing briefs due Wednesday. The plaintiffs argue that federal preemption from the National Bank Act applies to 'participants in the intricately interconnected payment system.' In its response, the AG's office says that position 'is hopelessly at odds with the plain language of the statute.' Durbin, who announced this week that he won't seek re-election next year, weighed in initially on the litigation with a brief in October arguing that the Illinois law is compatible with the debit-card amendment bearing his name that became part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. 'The IFPA's reform is modest and measured; it does not remedy the core structural and anticompetitive defects of the interchange fee system, but it would provide helpful relief for Illinois merchants who paid an estimated $488 million in interchange fees on sales tax in 2023 and would help reduce the inflationary effect that these fees have on the retail prices consumers pay,' Durbin wrote in his latest brief. The state act 'fully aligns with the Durbin Amendment's text, its structure, and its goal of constraining network-fixed debit interchange fees to reduce excessively high fee rates,' Durbin added. U.S. businesses paid about $145 billion in fees last year to accept Visa and Mastercard credit and debit cards, according to a March 2025 Nilson Report statistic cited in the merchants' brief. Merchants and the networks have been involved in separate litigation over these fees since 2005. Recommended Reading Durbin jumps into Illinois interchange law fray
