CFPB poised to shake up competition for consumers

While credit unions support efforts to regulate nonbanks, they will feel resulting pressure to provide more and better offerings.

Several initiatives by the Consumer Financial Protection Bureau seem poised to increase competition between credit unions and fintech companies.

An effort to regulate nonbanks has gained support from credit unions. Still, the CFPB’s plan to make it easier for consumers to move accounts will pressure traditional financial institutions to offer more products and better services.

These initiatives are coming when the agency is scrutinizing overdraft and nonsufficient funds fees, the CARD Act, and the terms and disclosures of buy now, pay later offerings—the latter a topic from SRM’s most recent report.

All signs point to the need for credit unions to buckle up in the coming months. These expected changes will likely bring fintech even more into the mainstream and raise the stakes when it comes to recruiting and retaining clients.

 

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