Registration and Continental Breakfast

Co-Chairs’ Welcoming Remarks

Industry Insights: How the Latest FinTech Innovations are Transforming the Face of Banking, Payments and Lending

FinTech innovation is currently experiencing unprecedented growth, and the emergence of new technology applications in self-service, online and mobile banking, machine learning, Big Data, and artificial intelligence (AI) are currently sowing the seeds of financial services disruption. As FinTech companies are partnering with banks and nonbanks and entering the market in record numbers, the industry is abuzz with questions surrounding which products will be welcomed by consumers and merchants, and how federal and state regulatory frameworks will be applied and adapted to these new technologies. Join this panel of industry leaders and innovators as they engage in thoughtful discussion of topics including:

• What FinTech products and services will cause (and are already causing) the greatest disruption to the financial services, banking, lending and payments marketplaces?
• How current regulatory oversight is impacting innovation
• The unique regulatory and compliance challenges facing companies seeking to enter the market

How the Federal Regulators are Viewing the Rapidly Evolving FinTech and Payments Landscapes, and What to Anticipate in Terms of Future Federal Regulatory and Compliance Initiatives

• Identifying what products, services and innovations are of the most concern to the federal regulatory and enforcement agencies and why
• The latest updates regarding the OCC FinTech Charter and applications for Industrial Loan Charters with the FDIC
• Analyzing the latest areas of regulatory scrutiny surrounding money transmission, virtual/cryptocurrencies, mobile wallets and payments, etc.
• What steps are the regulators taking in efforts to prevent the stifling of innovation?
• Examining regulatory agency initiatives designed to facilitate positive interactions between the regulators and the FinTech start-ups
• Best practices for ensuring compliance with new and emerging mandates from the key federal agencies overseeing FinTech and payments

Morning Coffee Break

State Activity Round-Up: What Has Changed in the Last Year in State Money Transmitter Licensing Requirements, and the Latest Regulatory Strides to Streamline Multistate Licensing, Examination and Supervision

In the last 12-18 months, numerous states have made modifications to their money transmitter licensing requirements. At the same time, the industry has been seeing state-level initiatives aimed at modernizing and harmonizing financial regulation of non-banks and FinTech companies operating nationwide. During this panel, state regulators and industry leaders will examine:

• The changing landscape in state money transmitter licensure: an overview of the latest changes to state money transmitter licensing laws over the last year
• Developments in state regulation of consumer lenders, bit licenses, payment processing and beyond
• Actions being taken to better align multi-state licensing, examination, regulation and supervision
• Assessing the CSBS’s Vision 2020

Protecting Consumer Privacy and Personal Data: Navigating the Challenges of the EU’s GDPR and California’s Consumer Privacy Act

Regulators are recently taking significant strides to protect consumers’ personal data, and as such, players in the FinTech and payments spaces are being forced to modify their data-collection, notification and security protocols. As banks and non-bank payments companies have already been struggling with compliance challenges associated with the recent NY cybersecurity regulations, they are now also being confronted with the EU’s massive General Data Protection Regulation, as well as California’s sweeping Consumer Privacy Act of 2018 (the “mini-GDPR”). Tune in as this panel provides key insights on topics including:

• Exploring the far reaching data and privacy implications of the GDPR on U.S. FinTech and payments companies that collect personal data relating to EU individuals
• Assessing the implications of California’s Consumer Privacy Act of 2018
  • What are the biggest challenges companies are facing with implementation and compliance?
  • The latest strides being taken by companies to seek legislative amendment of the CCPA
• Examining how the GDPR and CCPA are expected to drive up the costs of doing business and how FinTech/payments companies can best manage and contain those costs while achieving protection of customer data
• What other states are following California’s lead in seeking to implement similar legislation?
• Examining the question of whether customer data should be regulated at the federal or state level

Networking Luncheon

FinTech Companies and Bank Charters: A Close Examination of the Latest Licensing, Partnership and Chartering Options for FinTechs and What Factors to Consider in Determining the Best Choice

FinTech companies focused on payments or lending activities are continuing to face barriers to market entry created by our disparate 50-state licensing regime. In an effort to seek a solution, FinTechs are considering various different alternatives, including FinTech-bank partnerships structured to avoid state licensing regimes. While other options include traditional bank charters and the OCC FinTech Charter (to become a special purpose bank), few FinTech companies have seriously considered bank charters due to numerous cost and compliance factors that make becoming a bank too burdensome. This panel will take a close examination of the various licensing, partnership and chartering options available to FinTech firms in the US, and the different opportunities, costs, risks and other factors that should be weighed when considering the best fit. Topics to be covered include:

• OCC FinTech Charter update
• Partnering with a retail bank
• 50-State Money Transmitter Licensing Regime
• Industrial Loan Charters
• State Trust Company Charters

Faster Payments: Examining the Challenges Facing Companies Seeking to Facilitate Faster, Contactless Payments, and the Latest Strides of the Federal Reserve Faster Payments Task Force

Mobile technology and digital commerce are driving the need for a safer and faster payments system in the U.S. However, frustrations are mounting as the thousands of financial players active in the payment infrastructure are continuing to face hurdles in effecting faster, “real-time” payment capabilities. In a day and age where individuals expect instant and seamless financial transactions, it is often wondered why it takes companies like Venmo and Paypal days to settle a payment. The Federal Reserve has initiated a Faster Payments Task Force to address this rising demand from consumers and businesses for faster payment solutions, and to help guide banks and other financial organizations as they move forward with efforts to offer faster payment capabilities. This panel will address the current challenges impeding faster payments and provide insights on:

• What regulations, rules and standards are presenting hurdles to effecting faster payments
• How to balance the desire for real-time payments with the need to keep payments secure and ensure fraud prevention
• The latest activity of the Federal Reserve Faster Payments Task Force
  • What companies are being asked to offer input and faster payment solutions proposals?
  • What have these faster payment solution proposals entailed?
  • How is the Federal Reserve evaluating these proposals?
• Will successful implementation of real-time payments in the U.S. require a more active role by regulators?

Afternoon Break

Strategies for Implementing Robust BSA/AML and Fraud Deterrence Programs: Gaining a Competitive Advantage Over Other Banks and FinTech Companies That Are Behind the Curve

Due to ongoing supervisory and enforcement actions, and increased monetary penalties, FinTechs and payments companies are facing increased pressured to address BSA, AML and fraud deterrence risks head on. This panel will provide insights on:

• How FinTech companies can develop and maintain effective BSA/AML and fraud prevention programs
• Which party should bear the risk/burden?
• Identifying and assessing the money laundering and fraud risks that may arise in conjunction with the development of new payment products, delivery mechanisms, and technologies
• Taking a look at the most recent enforcement actions, and addressing how AML regulations are impacting new payment products and systems
• Evaluating your current AML program and identifying gaps or weaknesses
• Implementing automated AML and fraud tools
• Incorporating data analytics into your AML compliance initiatives

Who Owns the Data? Addressing the Debate Around Personal Financial Data Ownership and Portability: Assessing What the EU Has Done and What It Means for the US

The issue of who actually owns personal financial data continues to gnaw at people as personal financial applications continue to emerge within the FinTech industry. It has become apparently clear that financial data can now be useful outside of the bank, and in an effort to balance user priorities, security and monetization interests, many in the industry are seeking an answer to the question – who owns the data?

• Addressing the question of whether the U.S. is going to get data legislation that allows for the porting of data: what do we expect on the horizon?
• What has the EU done with regard to data portability and what does this mean for the U.S.?
• How are FinTech companies trying to take hold of the data from the transaction side?
• When FinTechs and banks both have a relationship with the customer, what are we seeing in terms of customer agreements regarding who owns the data, and who can do what with it and when? How are others structuring these agreements?

Conference Adjourns

Registration and Continental Breakfast

Artificial Intelligence and the Not-So-Distant Future of Payments: Exploring How AI is Transforming the Financial Services Space and How to Navigate the Legal and Compliance Risks on the Horizon

Artificial intelligence (AI) is emerging everywhere in financial services as companies are deploying the technology to gain insights into customers, markets and competitors, and to automate processes in almost every facet of operations. While this is considered both transformative and revolutionary, AI presents a wide range of dangers for companies, especially in the areas of regulatory compliance, privacy and ethics. The concerns are especially relevant for companies in the banking, payments and lending spaces, which have to comply with a number of government and industry regulations. This panel will engage in discussion of the most notable AI developments impacting financial services today, and share insights on:

• The most pressing legal issues and challenges associated with AI, including but not limited to those relating to:
  • Big Data
  • Machine Learning
  • Neural Net
• How AI is playing a role in lending and identifying credit-worthy borrowers, and addressing concerns surrounding discriminatory lending
• How AI is being used to detect fraud and suspicious activity in payments, and the legal, regulatory and compliance risks associated with this
• AI’s applications in RegTech

Prepaid Card Compliance Update: Assessing Compliance Pain Points and Implementation Challenges with the CFPB’s Final Rule on Prepaid Accounts

• Examining the aspects of the Rule that are causing the most controversy within the industry
  • What are the real industry pain points from a compliance and business/operational standpoint?
• Identifying implementation challenges that the industry is facing in complying with the rule in its current state
  • Employing efficient and cost-effective strategies for overcoming these challenges
  • Effecting a plan of action for what to do between now and the new proposed effective date
• Exploring additional changes to the rule that the industry is urging the CFPB to make
• Assessing the CFPB’s response to the latest industry comments and feedback
• Predicting how consumers will actually utilize the new protections that the Rule affords
  • Will the effects of the Rule change the types of products that consumers will want?

Morning Coffee Break

Should Coins or Tokens Offered in an ICO Be Treated as Securities, Derivatives, Convertible Virtual Currencies, or Prepaid Access? Examining this Question, the Impact of Rising ICOs and How to Proceed Amidst Regulatory Uncertainty

There is much confusion and debate within the marketplace surrounding whether bitcoins, tokens and other cryptocurrencies should be treated as securities, derivatives, convertible virtual currencies or a store of value. The rise of ICOs is particularly shining light on the question of whether cryptocurrencies are securities, and what that would mean for their regulation. Many believe that it is time for regulators to provide clarity on how cryptocurrencies fit within existing laws, and to adopt a framework for classifying and distinguishing between them. This panel will examine:

• The question of how coins/tokens offered in ICOs should be classified and treated
• What the regulatory and compliance implications would be if they were treated as:
  • Securities
  • Derivatives
  • Convertible virtual currencies
  • Prepaid access / stored value

Balancing Innovation and Consumer Protection: A Tactical Tool-Kit for Making it to Market in Today’s Evolving Payments and FinTech Ecosystem

As we proceed into 2019, there is continued, mounting excitement surrounding new FinTech and payments products entering the market. However, this excitement is often tempered by a company’s need to balance promises of innovation with promises of consumer protection and risk mitigation. Many companies are tasked with the challenge of selling a new and innovative business idea while also establishing a compliance program that will keep them out of trouble. This becomes particularly challenging in light of the fact that many of today’s laws don’t apply to current FinTechs. This session will provide a tactical tool-kit for approaching the challenges of balancing innovation with consumer protection, addressing tensions and friction between a company’s legal and compliance departments and operations teams, and successfully bringing a new FinTech product to market in today’s evolving ecosystem.

Global FinTech: Looking at the Latest Payment Systems Activity and Regulation Overseas to Avoid Falling Behind

The U.S. has long been considered the original birthplace of FinTech innovation. However, as technological advancements in the financial services industry continue to evolve, the U.S. runs the risk of falling behind other nations as our regulatory environment remains fractured and inconsistent. While U.S. regulation struggles to keep up, governments in the U.K., Singapore and Australia are being applauded for their regulatory efforts to foster innovation while still providing consumer safety nets, thus moving them closer to a cashless society. This panel will examine:

• How tech giants are transforming financial services and payments abroad, with a spotlight on the UK and China
• Overseas examples of how FinTech regulation can effectively benefit all stakeholders
• Key aspects of the successes other nations have seen, and considerations for improving FinTech regulation within the U.S.

Conference Concludes