As unlikely as it might seem, 2020 ended on a high note for the payments industry. The Federal Deposit Insurance Corp.’s updated rules on brokered deposits will lower the costs of insuring consumers’ deposits for Fintechs and the banks that work with them. This change is the culmination of five years of work on the part of the Innovative Payments Association and its members.
Despite this bright spot, the regulatory environment in 2021 may be a lot darker for the industry. There will no doubt be a change in the Consumer Financial Protection Bureau’s leadership, which will change that agency’s approach to regulation. Also, a letter from the chairwoman of the House Financial Services Committee to the incoming Biden Administration shows that Congress also plans to keep a close eye on financial services.
Despite all of that, the brokered deposits rule change shows that engagement by the industry can ensure that any new laws or rules do not stifle the industry’s good work to help consumers, businesses, and governments manage their money more effectively. We talk about how companies should lay the groundwork for the new environment they will face in 2021.
If you are not already a part of the Association and want to be part of the policy discussion shaping the future of the payments industry, then go to www.ipa.org to learn more about the benefits of membership in the association.