News from October 2024

Virginia bankers oppose new legislation on credit card transaction routing

Virginia's banking and credit union representatives have voiced concerns over a new bill that could change how credit card transactions are processed. The Credit Card Competition Act (CCCA), introduced by Senators Dick Durbin of Illinois and Roger Marshall of Kansas, is at the center of this debate.

Capital One returns to Miami Art Week with Hassan Hajjaj's immersive installation

Capital One and The Cultivist are returning to Miami Art Week with an installation titled DAR MIAMI 1446, created by the internationally recognized artist Hassan Hajjaj. This installation aims to immerse visitors in a Moroccan-inspired world, offering both Capital One cardholders and the public a unique cultural experience.

Banks file lawsuit against CFPB over new rule on financial data

The Bank Policy Institute and the Kentucky Bankers Association have initiated legal proceedings against the Consumer Financial Protection Bureau (CFPB) over its rulemaking under Section 1033 of the Dodd-Frank Act. This regulation addresses consumer access to financial data and its protection. The lawsuit, filed in U.S. District Court in Lexington, KY, claims that the CFPB has exceeded its authority, endangering consumer privacy and account security.

Bank of America sees substantial growth in AI-related patents

Bank of America has reported a significant increase in its artificial intelligence (AI) and machine learning (ML) patent portfolio, with a 94% rise in granted patents and pending applications since 2022. The company now holds nearly 1,100 AI and ML patents and pending applications, more than half of which have been granted.

Tim Scott hosts virtual career event for HBCU students focusing on finance

Washington, D.C. – A virtual career development event was hosted by Ranking Member Tim Scott (R-S.C.) for students attending Historically Black Colleges and Universities (HBCUs) in South Carolina and nationwide. The event aimed to discuss financial literacy and career opportunities within the financial services sector.

Bank of America's More Rewards Day returns November 7

Bank of America has announced the return of its More Rewards Day, scheduled for Thursday, November 7, 2024. This annual event, now in its third year, provides Consumer and Small Business credit cardholders an opportunity to earn additional rewards on their purchases as the holiday season approaches. Last year, participants earned over $26 million in extra rewards during this event.

BofA reports surge in API adoption driven by real-time treasury needs

The demand for real-time data and transaction processing has led to a significant increase in the adoption of Application Programming Interfaces (APIs) by Bank of America's business clients. Over the past year, there has been a 51% rise in clients using APIs, spurred by innovations that have streamlined onboarding and expedited transaction speeds.

Chairman McHenry supports CFPB's new rule on financial data privacy

The Chairman of the House Financial Services Committee, Patrick McHenry, issued a statement regarding the Consumer Financial Protection Bureau's (CFPB) final rule implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. McHenry stated, "The CFPB’s final 1033 rule is a promising step forward to protect Americans’ financial data privacy." He emphasized that consumers should have control over their financial data, including knowledge of where it is going and how it is used. The ability to terminate data collection by certain firms was...

Trust remains key factor in evolving car buying landscape

New research from Capital One reveals that the traditional in-person dealership experience remains crucial for car buyers, even as digital tools become more integrated into the early stages of the purchasing process. The 2024 Capital One Car Buying Outlook highlights that trust in dealers is a significant factor for buyers, with nearly half (48%) willing to visit a dealership with higher prices if they perceive it as trustworthy.

Bank of America offers extended guaranteed FX rates up to one year

Bank of America has introduced Guaranteed FX Rates with tenors extending up to one year, the longest currently available in the industry. This new offering aims to help companies manage foreign exchange risk associated with cross-currency payments and receipts. By using this solution, businesses can mitigate exposure to currency fluctuations and simplify treasury management processes like forecasting and reconciliation.

American Fintech Council partners with FTI Consulting to boost innovation

The American Fintech Council (AFC) has announced a new strategic partnership with FTI Consulting, a prominent business advisory firm. This collaboration aims to promote responsible innovation within the financial services sector and advocate for regulatory modernization. The partnership will also focus on creating educational resources for the fintech ecosystem.

Bank of America announces Q4 preferred stock dividends for multiple series

Bank of America Corporation has announced that its Board of Directors has approved regular cash dividends for the fourth quarter of 2024 on various series of preferred stock. The dividends will be distributed to shareholders according to the following schedule:

AFSA mourns passing of law committee vice chairman Alvin O. Wiese

AFSA has announced the passing of Alvin O. Wiese, a prominent figure in the field of consumer finance law, who died on October 11 at the age of 95. Al Wiese, a graduate of the University of Southern California Law School, was admitted to the bar in 1954 and spent his career representing consumer finance lenders, AFSA, and the California Association.

Bank Policy Institute seeks intervention in Fed's debit interchange rule challenge

The Bank Policy Institute (BPI) and The Clearing House Association have filed a motion to intervene in the case of Corner Post, Inc. v. Board of Governors of the Federal Reserve System. This legal challenge involves the 2011 rules on debit interchange revenue established under the "Durbin Amendment" in the Dodd-Frank Act. Corner Post, a truck stop in North Dakota, is contesting these rules with support from retail merchant trade associations, claiming they contradict the Durbin Amendment.

JPMorganChase launches financial centers aimed at affluent clients in New York and San Francisco

JPMorganChase has launched a new branch format, the J.P. Morgan Financial Center, targeting affluent clients with a focus on personalized service. The centers opened in New York's Columbus Circle and San Francisco's Financial District, marking the beginning of this initiative.

Bank of America announces fourth quarter dividends for common and preferred stocks

Bank of America Corporation has announced that its Board of Directors declared a regular quarterly cash dividend on common stock. The dividend is set at $0.26 per share and will be payable on December 27, 2024, to shareholders recorded by December 6, 2024.

Bipartisan push against proposed FDIC rule on industrial loan companies

A bipartisan group of U.S. Representatives, led by Rep. Blake Moore (R-UT), has formally requested that FDIC Chair Martin Gruenberg withdraw a proposed rule concerning the parent companies of industrial banks and industrial loan companies (ILCs). The representatives argue that the rule could introduce uncertainty and hinder ILCs' ability to provide essential products and services to consumers.

Campaign opposes new credit card processing law amid federal court challenge

The Electronic Payments Coalition has initiated a significant advertising campaign against a new Illinois law concerning credit and debit card processing. The coalition's effort comes as the law faces legal challenges in federal court. According to the coalition, the legislation will lead to complications for consumers and businesses in Illinois.

Chepngetich sets new women's marathon world record in Chicago

Ruth Chepngetich set a new world record at the Bank of America Chicago Marathon, finishing in 2:09:56. Her performance follows Kelvin Kiptum's record-setting run last year. John Korir also made headlines by achieving a personal best and the second fastest time in Chicago’s history with 2:02:44. In the wheelchair races, Marcel Hug won his fifth title in the men’s category with a time of 1:25:54, while Catherine Debrunner defended her women’s title with a course record-breaking 1:36:12.

House committee demands interviews from FDIC chair amid oversight concerns

Today, Patrick McHenry, Chairman of the House Financial Services Committee, sent a letter to Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg. In the letter, McHenry demanded that Gruenberg schedule a transcribed interview with the committee by 5:00 PM today. The request also extends to the FDIC's General Counsel and Director of Legislative Affairs for discussions on the agency’s indemnification process for private counsel.