Global Outages Hit Bank of America, Delta, Apple Faces New Scrutiny

Banking on Disruption Daily

Welcome to Banking on Disruption Daily for Friday, July 19, 2024. I’m Fred Cadena. First up, a massive tech outage worldwide disrupted banks, businesses, airlines, and even emergency services. Major financial institutions like Bank of America and JPMorgan Chase faced significant operational challenges due to a technical glitch at cybersecurity firm CrowdStrike. Next, the country’s largest banks are increasing cash bonuses and promotional interest rates to attract new checking account customers. With bonuses ranging from $200 to $300 and Citi offering a 5% rate for the first 90 days, this competitive push aims to draw customers towards higher-yielding options. In other news, the FedNow Service celebrates its first anniversary with around 700 banks onboard, mostly receiving instant payments. FedNow aims to modernize ACH transfers and reduce transaction costs, providing substantial benefits to consumers and business-to-business payments. Meanwhile, the CFPB proposes a rule to place large nonbank digital payment companies like Apple and Google under federal examination. This regulatory move targets companies with significant consumer payment volumes, leveling the playing field with traditional financial institutions. Lastly, political turbulence this week underscores the importance of agility and preparedness for banks in an unpredictable regulatory environment. Banks should focus on risk management and foster strong relationships with policymakers to navigate these changes effectively. That’s all for today! Thanks for tuning in to Banking on Disruption Daily. Until tomorrow, this is Fred Cadena wishing you success in your digital pursuits.