View from CBA December 13, 2013

December 13, 2013

CFPB Study on Arbitration

The CFPB released phase one of its study on December 12, 2013, regarding the use of mandatory arbitration clauses in connection with consumer financial products and services. The Dodd-Frank Act requires the CFPB to conduct a study of the use of pre-dispute arbitration clauses in consumer markets.  

I am disappointed in the piecemeal release of data in connection with the arbitration study, as it does not show the whole picture. For nearly 90 years, arbitration has been important, as it allows consumers to quickly and easily resolve disputes in a manner that is affordable for the consumer. We all know the winners in lawsuits are usually the attorneys, not consumers. Moving forward, I hope the CFPB, who has the sole authority on this important issue, will focus on how consumers fare in arbitration versus a suit in court or as a party to a class-action. 

MEMBER CALL: On Monday, December 16, 2013, CBA will host a members-only call from 2 - 3 p.m. ET with Alan Kaplinsky of Ballard Spahr to further discuss the study and answer questions. 

Visiting Our Bankers

Continuing my West Coast tour from last week, I visited with our Corporate Members in Hawaii on Monday (thankfully escaping the ice storm the rest of the country faced). Thank you to Bank of Hawaii’s Peter Biggs and Jill Higa, for taking the time to meet with me. Peter will be joining our new Mid-Tier Retail Executive Forum, headed up by CBA Board Member and Past Chair Bob Kottler of IBERIABANK.

Thank you to CBA Board Chair Andy Harmening for helping setup a meeting with First Hawaiian Bank, a member of the BancWest family. It was great to sit down with Bob Harrison, President and CEO. The Hawaiian-based banks also face the same challenges as our banks on the mainland - technology advancement, CFPB regulation, disparate impact and many other issues. I loved the Hawaiian shirt attire, which made the workday feel more productive without having to wear a tie.

Quarterly Board of Directors Meeting

The Board of Directors met on Thursday, and we had a very engaging conversation on the success of CBA over 2013 and our plans for 2014 including, membership, education, and CBA LIVE. Needless to say, the new regulatory environment is on the top of our list. 

Membership News

Kiran Analytics has joined CBA, making the 13th associate member added to CBA’s roster this year.

News and Notes

Jay Clark, Senior Vice President and Retail Planning Director of First Niagara - and a member of our Digital Channels Committee - was interviewed by American Banker on their adoption of mobile banking technology. Also making an appearance in the article is CBA associate member Fiserv.