Bank Trade Groups Sue CFPB

The Consumer Financial Protection Bureau’s contested update to how it will assess bank practices could mean new business for regulatory technology (regtech) providers. Regtechs, which offer software to help companies stay in compliance with regulations, have an opportunity to step in, as the update is likely to force banks to open their wallets, Anthony Alexis, head of the Consumer Financial Services Enforcement practice and former assistant director and head of the Office of Enforcement at CFPB, told Bank Automation News. “[N]o one’s going to give you access to their regtech for free, so that’s another cost driver,” he said. In addition, banks might have to hire new teams just to ensure that product offerings stay in compliance with CFPB’s anti-discriminatory rules, Alexis noted.