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View from CBA July 26, 2013
Senate Hearing on DAP
The Senate Special Committee on Aging held a hearing this week on short-term liquidity products with a focus on senior citizen customers. I served as a witness, along with representatives from consumer groups and the CFPB, and fielded questions on the difference between the deposit advance products (DAP) our banks offer and the more expensive payday loans available from unregulated non-bank lenders. I highlighted that while very few individuals choose DAP, the vast majority of those who do have paid back their financial obligations without incident. There was heavy focus on increased usage of online lending. Senator Warren focused greatly on one "unsatisfied" consumer and not on the actual product. For more information on the hearing, please see the GR update below.
Classes kicked off at the Graduate School of Retail Bank Management this week in Greenville, S.C. This is one of my favorite weeks of the year and I am pleased CBA's Education and Membership teams are connecting with GSRBM students at Furman University. CBA's General Counsel Steve Zeisel provided a featured guest lecture to the Junior class on Wednesday and discussed the CFPB's role at their respective banks. Yesterday, I joined the group and spoke to the Freshmen and Senior classes about Deposit Advance Products, the CFPB and the state of banking regulation. It was a great opportunity to engage with the many GSRBM students who also serve on CBA Committees, subcommittees, and working groups.
On Thursday night, GSRBM students and faculty dined with visiting executives from the corporate branches of their banks. It was a pleasure to meet with our many guests in addition to our visiting CBA Board members David Bohne, President, USAA Federal Savings Bank; Neil Hall, Executive Vice President, PNC Bank; Jeff Hooper, Executive Vice President - Retail Banking Manager, SunTrust Banks; Will Howle, Chief Operating Officer, U.S. Consumer & Commercial Banking Group - President of U.S. Commercial Banking, Citibank; Bob Kottler, Executive Vice President - Director of Retail & Small Business, IBERIABANK; Mary Navarro, Senior Executive Vice President - Retail & Business Banking Director, Huntington Bancshares Inc.; and Mark Rendulic, Executive Vice President - Retail Banking, First Niagara Bank.
Thanks so much to all of you who have devoted the time and resources to sending students to GSRBM and connecting with them at Bank Dinner night. I look forward to our final 2013 classes and graduation!
Senator Brown caught the industry's attention with the announcement of his upcoming overdraft bill, but I do not anticipate any movement on it in the near future.
CBA pays tribute to Robert Jakubowicz, Vice President, Collections Group Manager for BMO Harris in Brookfield, WI who passed away suddenly this month. For the last few years, Bob was an active member of the CBA Default Management Committee. CBA is deeply grateful for his contributions to the committee and the organization. He will be greatly missed.