CFPB: Impact on Financial Institution Fraud Departments

Report Summary

CFPB: Impact on Financial Institution Fraud Departments

FI executives often do not plan for or manage CFPB exams as well as they could.

Shirley Inscoe
Senior Analyst

Boston, September 29, 2016 – As opposed to other regulators that focus primarily on safety and soundness issues or compliance with federal regulations, the Consumer Financial Protection Bureau focuses on the treatment of consumers. The CFPB does not typically examine FIs’ fraud departments directly, but the exams that the Bureau performs often have a substantial indirect impact on these areas, and as demonstrated by the US$100 million fine it levied against Wells Fargo, the CFPB takes its mission to champion consumers very seriously. CFPB exams seem daunting to FIs, but sound preparation, along with fair business practices, can help FIs prepare for and successfully undergo the process.

The purpose of this Impact Note is to share the experiences of fraud executives at FIs that have experienced examinations by the CFPB, including the lessons they learned, and to establish some preliminary best practices FIs can benefit from. Aite Group performed case studies of five large U.S. FIs that experienced CFPB exams within the past 20 months.

This 19-page Impact Note contains two figures and three tables. Clients of Aite Group’s Fraud & AML service can download this report and the Executive Impact Deck.

Download table of contents

This report mentions ChexSystems, Citibank, First National Bank of Omaha, Hudson City Savings Bank, Santander bank, and Wells Fargo Bank.

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