Week ahead: Diversity summit, data breach settlement and more
This week the financial services industry is focusing on diversity, equity and inclusion.
The National Credit Union Administration's DEI Summit takes place this Wednesday where credit union leaders will discuss strategies and challenges that the industry faces in advancing diversity and equality principles. The NCUA also plans to give a demonstration of its credit union diversity self-assessment.
“The goal is to gather credit union folks interested in advancing the DEI system,” said Samira Salem, a senior policy analyst at the Credit Union National Association.
The number of institutions filling out the self-assessment form is growing, but the overall response rate is staggeringly low. Out of over 5,000 credit unions that received the self-assessment, only 81 completed it in 2018. That's the equivalent of about 1.5% of the industry at the end of 2018.
The Consumer Financial Protection Bureau will host a symposium on small business data collection methods. The National Association of Federally-Insured Credit Unions previously urged the CFPB to exempt CUs from rulemaking since credit unions were not “a culprit of bad behavior” that resulted in the CFPB’s creation, a NAFCU spokesperson said.
The CFPB’s effort is the third part in a series that explores consumer protection in today's marketplace. The first part of the symposium focused on the Dodd-Frank Act's prohibition on abusive acts while the second part focused on behavioral economics.
Credit unions that took part in the class action suit following a massive data breach at Wendy's should see some relief soon. The fast food chain previously agreed to a $50 million payout to affected financial institutions, along with adopting additional data security measures. On Wednesday, the U.S. District Court for the Western District of Pennsylvania will hold a final hearing on the matter to approve not only the settlement but also attorneys' fees and whether service awards for settlement class representative are appropriate. Several credit union groups, including trade associations, state leagues and individual institutions, are plaintiffs in the case.
A jury trial begins on Monday in USAA’s patent infringement lawsuit against Wells Fargo. The financial services company is accusing Wells Fargo of violating four mobile remote deposit capture patents. Mobile capture is used extensively by both banks and credit unions, so industry trade groups are monitoring the trial for any decision that could impact credit union operations. A NAFCU representative noted the case could have implications for credit unions because of the industry's widespread use of remote deposit capture technology.
The Senate Banking Committee will hold a hearing on promoting affordable housing access and safety this Thursday.
This story was updated at 12:30 P.M. ET on Nov. 5, 2019.