The long-established FICO credit scoring system has been used for decades to evaluate creditworthiness of some 200 million US consumers, but its dominance in that role may be waning. Some lenders such as Capital One have stopped using FICO scores altogether, while others say they are reducing their use of it. Banks are also facing regulatory pressure to lessen their reliance on credit scoring, in general, as it is thought to limit access to affordable credit.
Financial markets infrastructure companies' business continuity plans don't "ensure that critical information technology (IT) systems can resume operations within two hours" or "enable the FMI to complete settlement by the end of the day of the disruption, even in case of extreme circumstances," according to an Implementation Monitoring Standing Group report. The report examined factors such as risk profiles at secondary sites that differ from primary sites and arrangements to cope with major staff outages.
The Consumer Financial Protection Bureau issued $14 billion in enforcement actions since its creation 10 years ago and is still led by a single-director appointed by the president, despite challenges to its structure. "Subject to the pendulum swings of changing administrations, the bureau's single-director governance structure too often centers around politics in Washington rather than the very people it was created to protect - the consumer," said Richard Hunt, president and CEO of the Consumer Bankers Association, which advocated for a bipartisan, five-member commission.
Fidelity International, through its venture capital arm, Fidelity International Strategic Ventures, has acquired a stake in cloud-based data platform Finbourne. Fidelity will adopt Finbourne's Lusid system, which will play a key role in streamlining the fund manager's data architecture.
When the COVID-19 pandemic hit, many companies discovered significant vulnerabilities in their supply chains, remote working capabilities, IT management and beyond. Together, these vulnerabilities created a stress test for companies' business continuity management strategies.
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