Compliance

Banks developing new products and services need to pay as much attention to how they plan to describe and market the offerings as to their actual design.

Just two days after the election I will be attending a lunch at which former senator Christopher Dodd, best known as the co-author of the famous (or infamous) Dodd-Frank law will speak to a business group.

As if financial institutions didn’t have enough on their compliance plate, the Consumer Financial Protection Bureau (CFPB) on February 7 issued a final rule to implement section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act amending the Electronic Funds Transfer Act (Regulation E).

Uncontrollable compliance costs are often cited by community banks as a reason for selling out to another institution.

Banks have struggled serving the un- and underbanked for decades.

When bankers sit down to design new products in this new regulatory era, they should bring their compliance experts in at the start of the conversation rather than at the end.