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Trump Considering ‘Pretty Significant’ Changes to CFPB

President-elect Donald Trump and congressional Republicans are reportedly considering sweeping changes to the Consumer Financial Protection Bureau (CFPB).

The GOP hopes to curtail the powers and funding of the CFPB, the Washington Post reported Sunday (Nov. 25), putting them in the same camp with banks, credit card and mortgage lenders and other big financial companies.

These financial institutions, the report noted, have been battling the CFPB under Democratic control, particularly regulations against things like “junk fees.”

Rohit Chopra, the Democrat who heads the bureau, has aggressively pursued efforts to help consumers switch banks and avoid overdraft fees. Republicans have opposed these works, accusing the CFPB of regulatory overreach. 

Read more at PYMNTS.COM

Navigating the CFPB’s New Rule: What Every Financial Marketer Should Know

The CFPB is moving to give consumers' more control over their financial data. Not only will customers be able to shift their data to new providers at will, but they can demand existing or past providers delete their information. Meeting both requirements – and fending off the higher rates of attrition that may result – will require an overhaul of data management and engagement practices at many institutions.

On October 22, the Consumer Financial Protection Bureau (CFPB) finalized its Personal Financial Data Rights Rule, which seeks to empower consumers with greater control over their financial data. At its core, the rule enables customers to move their data freely between financial institutions at no cost and allows them to revoke access to their data immediately upon request. This change is set to significantly impact how financial services organizations, from traditional banks to fintech companies, manage customer relationships, retain business, and acquire new clients.

Read more at The Financial Brand

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

• Direct File is expanding to a dozen new states and will cover a wider range of tax situations for the 2025 tax filing season. Read more here about the expansion of this free e-filing service: https://ow.ly/MOJB50TGNn1

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Why AI Tech Projects Often Flop in Banking and What to Do

When implementing an artificial intelligence project, the biggest challenge is typically not the technology, but the humans affected by it, says a Royal Bank of Canada executive. She draws on her experience overseeing AI projects in the banking industry to share hard-earned advice on how to avoid common pitfalls and ensure success.

World War II movies often have a scene where entire villages turn out to cheer the victorious Allies as they rumble by in their jeeps, with people in the crowd waving American flags and women kissing the GIs. Everyone’s deliriously happy!

Stories about innovation in banking frequently have a similar vibe.

But banks and credit unions intending to step up their investment in innovation — especially artificial intelligence — have to be prepared for unhappy villagers.

Read more at The Financial Brand

CFPB Finalizes Rule on Federal Oversight of Popular Digital Payment Apps to Protect Personal Data, Reduce Fraud, and Stop Illegal “Debanking”: CFPB

Final rule brings supervision to Big Tech and other widely used digital payment apps handling over 50 million transactions annually

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today finalized a rule to supervise the largest nonbank companies offering digital funds transfer and payment wallet apps. The rule will help the CFPB to ensure that these companies – specifically those handling more than 50 million transactions per year – follow federal law just like large banks, credit unions, and other financial institutions already supervised by the CFPB. The CFPB estimates that the most widely used apps covered by the rule collectively process over 13 billion consumer payment transactions annually.

"Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” said CFPB Director Rohit Chopra. "The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures."

Read more at The Consumer Financial Protection Bureau (CFPB)

Digital Wallets Gain Traction: Nearly Half of US Consumers Tap In

In the U.S., digital wallets have become popular for everyday transactions, yet their full potential remains largely untapped. While smartphones are everywhere, and digital wallets are growing in accessibility, American consumers are still hesitant to embrace the broader capabilities of these tools.

According to a PYMNTS Intelligence report, “Digital Wallets Beyond Financial Transactions: U.S. Edition,” created in collaboration with Google Wallet, U.S. consumers are mostly using digital wallets for payments, but the range of non-financial functions, such as storing keys, event tickets or even verifying identity, has not gained traction.

Current Use: A Focus on Payments

Digital wallets in the U.S. are commonly used for transactions. According to the report, 48% of consumers use their digital wallets for online shopping, while 39% use them in-store. While these numbers reflect a steady trend, they also highlight a gap in usage, especially in comparison to other regions like the U.K., where a significant portion of the population embraces digital wallets for non-transactional uses. Consider 23% of U.K. consumers use their digital wallets to store travel or identity-related credentials, a feature that remains underutilized in the U.S.

Read more at PYMNTS.COM

With Inflation Stabilizing, Are Credit Cards Still a Good Safety Net?

After several years of steep inflation has stressed many American households, the inflation rate has hit a normal range of 2.6% in October 2024, according to the Bureau of Labor Statistics’ Consumer Price Index. Additionally, the Federal Reserve has lowered interest rates, suggesting the economy is in a more stable place.

Despite things leveling out, credit balances continue to rise, according to a TransUnion report, meaning Americans are still relying on their credit cards quite a bit. 

Consumers may wonder if lower inflation means it’s a better environment to use credit cards as a safety net. Credit experts weighed in.

Read more at MSN.COM

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Study: Workplace burnout and financial vulnerability hit U.S. workers hard in 2024

COLUMBUS, Georgia — A new report highlights mounting stress and financial challenges for American workers, revealing alarming trends in workplace burnout, health care concerns, and financial insecurity. The findings come from the 14th annual Aflac WorkForces Report, which tracks workplace trends, employee attitudes, and benefits needs.

The report found that nearly 60% of U.S. workers are experiencing burnout, with younger generations particularly affected. Millennials (ages 28–43) reported the highest levels of burnout at 66%, compared to 55% of Gen X workers and just 39% of baby boomers. Overall, stress levels among employees rose to 38% in 2024, up from 33% in 2023.

The data also highlighted disparities among different demographics. U.S. Hispanic workers reported higher levels of workplace stress (46%, up from 37% in 2023) and were nearly twice as likely as non-Hispanic employees to report very high levels of burnout.

Read more at sciotovalleyguardian.com

Bridging the Digital Divide: How Banks Can Meet Customer Expectations in Lending

Banks and credit unions may feel like they offer a best-in-class digital experience — and the readiness to offer new services and options — when it comes to bringing lending products online. And they may see themselves as engaging with their customers across online channels. But their customers might beg to differ.

As Eric Lee, vice president of product at Amount, told PYMNTS recently, “there seems to be a disconnect between how FIs [financial institutions] see their digital readiness and what the actual readiness looks like.”

Digital lending readiness, he told PYMNTS, refers to the FIs’ technical and operational capabilities that enable banks to evaluate prospective borrowers, offer financial products in a risk-appropriate way and process the loans.

From his vantage point at Amount — which offers a loan origination and account opening platform that serves FIs — there’s a wide variance in terms of digital lending readiness depending on the size of the financial institution. 

Read more at PYMNTS.COM