The Brookfield, Wis.-based core processor Fiserv has released an official statement regarding the CFPB order to provide anonymous data pertaining to overdraft programs.
Fiserv's statement regarding its assistance to the CFPB read as follows: “We are currently assisting the CFPB at their request. They are currently researching overdraft programs and have asked us to provide information about our hosted account processing clients' system settings pertaining to overdraft programs. We are making clients aware of the CFPB request, and the assistance that we are providing.”
Fiserv was not immediately available for comment earlier last week, but did release the following memo to its credit union clients:
“(The) CFPB assures Fiserv that the order is intended to acquire data for research purposes only, under the bureau's authority to monitor and maintain a fact-based understanding of the financial services marketplace. Because of this assurance, and because the data we produce about your settings will not include information elements that identify your specific institution, we do not believe this order poses the risk of compliance activity aimed at any individual credit union.”
The core services provider reassured clients it will protect their privacy but warned the CFPB order may raise prices.
The data set requested by the CFPB, according to Fiserv, included approximately 60 data elements about each hosted account processing client's system settings, but did not include the institution name, location or other identifying information.
The requested data will capture a generic snapshot of deposit accounts and programs that includes overdraft processing and identification, duration measurement and fee assessment at the system level before any discretionary intervention. There was no personally identifiable consumer information involved in the order's data request, Fiserv said.
The Jacksonville, Fla.-based FIS received the same request, the company revealed.
“FIS is participating with the CFPB in their overdraft market study,” FIS said. “FIS has anonymized all of the data we have provided the CFPB, which means no FIS clients or FIS client customers are identified in the data we have shared with the CFPB.”
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
