Financial Forward: The Future of Consumer Finance & Banking

Send us a textEpisode DescriptionIn this episode of Financial Forward, host Jim McCarthy sits down with John McNamara, former Principal Assistant Director for Markets at the Consumer Financial Protection Bureau (CFPB). Together, they pull back the curtain on how complaint data actually powered markets, supervision, and enforcement inside the Bureau—and what that means for state regulators today.Jim and John walk through the evolution of the CFPB complaint system, the value of normalized and validated data, and how the CFPB Regulator Portal gives states access to “full jacket” complaints, not just what appears in the public database. They also look at a live example from Texas, using McCarthy Hatch’s FSAi model to identify violations of state law within CFPB complaints.If you’re a state regulator, a bank or credit union compliance leader, or anyone trying to get real signal out of noisy complaint data, this conversation is a playbook for using the tools you already have—but probably aren’t using to their full potential.In This Episode, We CoverHow the CFPB actually used complaint dataHow complaints fed the Bureau’s markets, supervision, and enforcement workWhy John saw complaints as a strategic asset, not just customer service escalationThe importance of normalized, comparable data across products, companies, and timeInside the CFPB State / Regulator PortalThe evolution from the original state portal to today’s Regulator PortalHow state agencies can use the portal and API to access full-jacket complaints, including attachments and richer fields than the public databaseWhy the boarding and validation process for companies matters for anyone using CFPB complaint dataWhat makes this data so powerful for statesUsing complaints as an early-warning system for new products, new players, and emerging harmsSpotting velocity and direction of change—not just counting volumeHow complaint patterns can surface “outsized harm” from relatively small or new entitiesTexas case study with FSAiJim walks through Texas CFPB complaints from January–JulyHow the FSAi model isolates potential Texas state law violations from public CFPB complaintsWhat it means when only a small percentage of complaints contain clear violations—but those are exactly the ones that matter most for deployment of investigative resourcesPractical takeaways for state regulatorsHow to stop treating complaints as a back-office obligation and start treating them as front-end intelligenceWays to align complaint data with supervisory and enforcement strategyHow to “put wind at your back” by sending investigators out with data-informed priorities rather than hunchesWhy industry should care tooHow banks and other financial firms can use complaint data and the CFPB system as a market research and risk management tool, not just a regulatory requirementThe idea of each company having a complaint fingerprint—and what it means when that fingerprint changesGuest Bio – John McNamaraJohn McNamara is the former Principal Assistant Director for Markets at the Consumer Financial Protection Bureau, where More from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/

Send us a textGuest: Levi — Founder/Builder at Nav Topic: Making business credit visible, useful, and fundable.Key TakeawaysBusiness credit ≠ consumer credit. The ecosystem is opaque; owners often don’t know what’s being scored—or why. Nav makes it legible and actionable.Visibility first, capital second. You can’t optimize what you can’t see. Pull your business credit data, fix errors, and understand how banks read your file.Cash-flow signals matter. The wrong checking account or weak deposits can silently disqualify you from entire categories of financing.Right product, right stage. Lines, cards, term loans, and revenue-based financing each fit different business seasons. Matching beats “spray and pray.”Data > guesswork. Nav’s approach reduces randomness by aligning real business data with lender criteria—moving you from “no idea” to “next step.”What We CoverThe “blind spot” in traditional small-business credit and how Nav closes it.How to build a real business credit profile (beyond your personal FICO).Cleaning up silent killers: bank account choice, thin files, mismatched signals.Funding ladders: which instruments to use and when to move up.The future of business credit data and where underwriting is headed.Practical Actions for OwnersPull your business credit reports (all major bureaus) and correct inaccuracies.Bank where you build: choose accounts that strengthen underwriting signals.Sequence your funding: start with the product that fits today’s data, not tomorrow’s hopes.Separate personal and business credit early; establish consistent trade lines.Monitor monthly so you can course-correct before you apply.Memorable Lines“You don’t know it’s eliminating you from financing—until someone shows you.”“Visibility isn’t vanity; it’s eligibility.”“Match the capital to the stage, not the dream.”Resources MentionedNav – business credit visibility and funding matches.Major business credit bureaus (e.g., D&B, Experian, Equifax).Business credit cards, lines of credit, term loans, revenue-based financing.About the GuestLevi is the founder behind Nav, serving 2.4M+ small-business users and backed by $200M+ in capital. He’s an operator-investor who’s sat on multiple fintech boards and spends his time solving real owner problems with clean data and clear decisions.More from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/

Send us a textEpisode SummaryAmy — a retired Texas teacher living on a fixed income — whose protected retirement funds were swept from her bank account to satisfy an old, likely time-barred credit-card judgment. By filing a detailed complaint with the CFPB and notifying both the collector and the bank that the funds were protected under Texas law, Amy triggered a reversal and got her money back. The episode explores why precision in language matters, what ‘protected funds’ and ‘time-barred debt’ mean, how responses differ between banks and collectors, and the broader, compounding costs of consumer-financial abuse on older Americans.Key TopicsProtected funds and Texas anti-garnishment protectionsTime-barred debt and judgment enforcementHow to file an effective CFPB complaint (what to say, who to notify)Bank vs. debt-collector obligations and typical responsesThe hidden tax of junk fees, high-risk interest, and remediation costs on fixed-income seniorsPractical TakeawaysName the money source explicitly (e.g., Texas teachers’ retirement) and state it is protected under state law.File a CFPB complaint and share it with both the collector and the bank, in writing.Keep records: dates, amounts, messages, and call notes help accelerate resolution.Older Americans on fixed incomes are disproportionately harmed by junk fees and predatory products.Policy matters: clear rules and enforcement protect households long before a crisis does.Resources MentionedConsumer Financial Protection Bureau — Complaint Portal (file and track complaints)Your state’s exemptions chart (review protections for wages, retirement, and benefits)Legal aid organizations for debt-collection and garnishment issuesBank account ‘benefits-only’ direct-deposit settings and alertsMore from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/

Send us a textTitle: Insuring Fraud at Signup: Sunil Madhu on AI Underwriting, Faster Approvals, and Claims in 30 Days Guest: Sunil Madhu, Founder & CEO, Instnt (previously Founder & CEO, Socure) Length: ~41 minutesWhat This Episode Is AboutMost fraud tools try to detect risk. Instnt goes a step further: it underwrites onboarding fraud risk in real time and transfers residual loss to A-rated insurers. For consumers, that can mean fewer false declines and faster approvals. For institutions, it can free up risk capital and reduce the pressure to add friction “just in case.”Who Should ListenBanking, fintech, and payments leaders balancing growth vs. fraudCompliance and risk teams navigating KYC/AML, Reg E, and UDAAPCurious listeners who want a plain-English look at how onboarding actually worksKey Topics We CoverThe customer journey: where the binary “insurable / not insurable” decision fires during signup and what changes for the user experienceWhat’s novel: pairing AI risk assessment with insurance capacity—not just a score, but loss transferClaims & operations: online filing and marketed ~30-day payouts; how coverage coexists with chargebacks and statutory consumer redressRisk incentives: preventing moral hazard and keeping approvals smart (model governance, recalibration, bias checks)Compliance fit: how the model sits alongside existing KYC/AML stacks and why it doesn’t change Reg E obligations to consumersMarket impact: where traditional defenses fail (e.g., synthetics, first-party fraud) and how insurability changes economicsPlain-English GlossaryOnboarding fraud: Fraud that happens while opening or activating an account (e.g., stolen or synthetic identity).Loss transfer: Moving expected fraud losses from the institution’s P&L to an insurance policy.False decline: A legitimate customer wrongly blocked or forced through excessive friction.Moral hazard: The risk of loosening controls just because losses are insured.TakeawaysConsumers feel it: Insuring residual fraud risk lets institutions remove friction and cut false declines, improving first impressions.Finance cares: Moving expected losses off the books can free reserves, turning fraud spend from a pure cost to a growth enabler.Policy still binds: Insurance doesn’t erase Reg E or consumer redress—coverage is about the institution’s residual loss, not limiting statutory rights.AI with accountability: Real-time underwriting must come with explainability and recalibration to avoid bias and drift.Suggested Chapter Guide (approx.)00:00–04:30 | Why fraud insurance at onboarding exists04:30–12:00 | The “apply → approved” flow and the insurability decision12:00–20:00 | Claims, payouts, and what changes for ops teams20:00–30:00 | Compliance fit: KYC/AML, Reg E, data privacy30:00–40:00 | Incentives, bias, and the future of AI + insuranceResourcesGuest: Sunil Madhu (LinkedIn)Company: Instnt — identity fraud loss insurance for onboarding (AI underwriting + A-rated insurer backing)More from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/

Send us a textEpisode summaryPaying U.S. college tuition from abroad can be slow, expensive, and confusing. Crebit says it fixes that by letting families in Brazil and Mexico pay locally (PIX or bank transfer), converting funds to USD, and delivering a check directly to the school—positioning itself as a faster, lower-cost alternative to incumbents like Wise and Flywire. We unpack how the product works, the regulatory plumbing (KYC/AML, FX/US checks), where the savings come from, and what this means for international families and bursar offices. crebitpay.com+1GuestsSimmi Sen (Crebit)J. Coonradt (Crebit) (Both joined to discuss the product and roadmap; roles/titles may evolve.)Key takeawaysWhat Crebit does: Families pay in local currency (e.g., BRL via PIX), Crebit converts to USD and issues a check to the university—streamlining a process that’s often fragmented across banks and payment platforms. crebitpay.comWhy it matters: International tuition payments are fee-heavy and time-consuming. Crebit markets “faster transfers and better rates” than Wise/Flywire; the team breaks down where those savings may emerge (FX spread, fee structure, operational model). (Claim per company site.) getcrebit.comBrazil context: PIX has transformed domestic payments in Brazil (trillions of BRL annually), creating user behavior and rails that cross-border services like Crebit can tap. PagBrasilSchool operations: Receiving a USD check directly simplifies reconciliation for bursars and avoids wire-related mystery fees. crebitpay.comWho benefits first: Families in Brazil and Mexico paying U.S. tuition; potential expansion paths to other corridors.Topics & suggested chapter markers(Adjust times to your actual edit.)The problem — international tuition pain points (fees, delays, opaque FX).Crebit’s flow — local pay-in (PIX/bank), FX conversion, USD check delivery. crebitpay.comComparing to incumbents — where rates/speeds diverge vs. Wise/Flywire; what “better” means in practice. (Company positioning.) getcrebit.comRegulatory plumbing — KYC/AML, corridor compliance, school receiving processes.Brazil spotlight — the PIX effect and why BRL→USD corridors are unique. PagBrasilRoadmap & expansion — additional countries, payment methods, campus integrations.Advice for families — how to compare fees, FX spreads, and delivery times across providers (what to ask before sending).What’s next for Crebit — product integrations and university onboarding.Notable quotes (paraphrased for show notes)“Pay locally, settle in USD—schools get what they expect without wire surprises.” crebitpay.com“Our goal is faster transfers and better rates than the legacy options.” (Company claim.) More from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/

Send us a textEpisode Summary: In this special episode of Financial Forward, we present Jim McCarthy’s keynote address from FinovateSpring 2025, held in San Diego, California. With over three decades in banking and regulatory leadership, including pivotal roles at the FDIC and as a founding member of the CFPB, Jim shares a powerful perspective on the future of financial services under the returning Trump administration.The speech explores the risks and opportunities of deregulation, the impact on consumer protection, and the expected wave of bank mergers and fintech innovation. Jim also addresses the ethical challenges of a system with fewer oversight mechanisms and calls on industry leaders to step up when traditional regulators pull back.What You’ll Learn in This EpisodeThe new deregulation landscape and its potential to reshape the financial sector.Systemic and consumer risks that could emerge when oversight diminishes.Opportunities for innovation in fintech and distressed debt markets.The ethical imperative for leaders to uphold accountability in times of loosened regulation.Why trust and responsibility will be the deciding factors in the next chapter of banking and fintech.Key Moments00:00 – Introduction: Setting the stage at FinovateSpring 2025.03:15 – The Landscape of Deregulation: How agency cuts and policy shifts create a vacuum.06:20 – Risks of Deregulation: From consumer harm to systemic threats.09:35 – Opportunities of Deregulation: Innovation, M&A, and market entry advantages.12:50 – Who Watches the Watchers?: The conflict of gatekeepers and the need for ethical leadership.15:10 – Closing Thoughts: A call to action for the industry to balance innovation with responsibility.About the Speaker: Jim McCarthy is Chairman of McCarthy Hatch, a financial technology and consulting firm focused on regulatory risk management. A former FDIC leader during the financial crisis and a founding member of the CFPB, Jim brings unparalleled insight into the intersection of regulation, compliance, and innovation.Resources & Links:Follow Jim McCarthy on LinkedInLearn more about McCarthy Hatch: www.mccarthy-hatch.comSubscribe to Financial Forward for more industry insights🎧 Subscribe, Share, and Review If you enjoyed this episode, don’t forget to subscribe on your favorite podcast platform and share it with colleagues and friends in the financial services industry.More from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/

Eric Goldberg, a consumer financial services expert, and Colonel Paul Kantwill, a veteran advocate and former CFPB official, discuss the significant settlement between the CFPB and FirstCash over violations of the Military Lending Act. They explore predatory lending practices targeting military personnel, emphasizing the need for better protection. The conversation dives into compliance challenges faced by financial institutions and the importance of ongoing supervision to safeguard service members' rights, highlighting the evolving regulatory landscape.

Send us a textRecorded: Tuesday, July 1 | 1:00 PM CT Presented by: McCarthy Hatch🎯 Episode Overview:As the Consumer Financial Protection Bureau (CFPB) sharpens its lens on how financial institutions serve military members and their families, this live panel explores the evolving regulatory landscape and the moral imperative to do better.We go beyond compliance checklists to examine complaint data, identify institutional risks, and spotlight opportunities to lead with integrity.👥 Featured Panelists:Jim McCarthy Chairman, McCarthy Hatch Founding member of the CFPB, regulation expert, and host of Financial Forward.Eric Goldberg Partner, Akerman LLP Nationally recognized regulatory attorney with deep experience advising banks and fintechs on CFPB rules and servicemember protections.Lezlie Hansen Executive, U.S. Bank Senior banking leader overseeing compliance and customer experience, with a strong focus on military financial services.Colonel Paul Kantwill (Ret.) Former Assistant Director, Office of Servicemember Affairs, CFPB Decorated U.S. Army veteran and one of the most respected voices in military consumer protection.🔍 Topics Covered:The CFPB’s intensifying enforcement posture on military-related financial harmCommon SCRA compliance failures—and their legal and reputational risksTrends emerging from complaint data and regulatory actionsWhat military families are experiencing in the marketplace todayBest practices for banks and servicers navigating scrutiny with integrityHow to build an internal culture that respects, protects, and empowers those who serve📌 Key Takeaways:Data is destiny: Complaint trends offer early signals of where regulators are headed next.Culture matters: Compliance with the SCRA isn’t just a legal issue—it’s a leadership one.Enforcement is rising: Expect increased scrutiny, particularly in lending, collections, and repossessions involving servicemembers.Institutions must lead: Those who proactively close gaps and invest in consumer fairness will be best positioned to thrive.📚 Resources Mentioned:Servicemembers Civil Relief Act (SCRA) guidanceCFPB enforcement updatesMcCarthy Hatch’s FSAi risk monitoring technologyAkerman LLP legal insights hubU.S. Bank’s commitment to military familiesKantwill Strategies: Veteran advocacy and training📣 Stay Connected:👉 Follow McCarthy Hatch on LinkedIn 💬 Reach out to Jim McCarthy for speaking engagements or media inquiries 🎧 Subscribe to Financial Forward for future episodes and webinarsMore from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/

Send us a text“AI Governance & Change Management in Financial Services” Guest: Parijat Banerjee, Global Head of Financial Services at LatentView Analytics🔗 Episode SummaryIn this episode of Financial Forward, host Jim McCarthy sits down with Parijat Banerjee, a leading expert in financial data analytics and the Global Head of Financial Services at LatentView Analytics. Together, they explore the challenges and opportunities financial institutions face in implementing AI-driven transformation, with a special focus on AI governance, data integrity, risk alignment, and change management.Drawing from nearly two decades of experience in data-first consulting, Parijat shares how financial organizations can adapt to the rapidly evolving AI landscape while maintaining compliance, trust, and operational resilience. This is a must-listen for leaders navigating digital modernization, regulatory scrutiny, and cultural shifts inside banks and financial service providers.💡 Topics CoveredThe current state and future trajectory of AI adoption in bankingGovernance models that support responsible AI useThe importance of cross-functional collaboration between compliance, risk, and ITHow to translate AI strategy into execution without disrupting core operationsThe cultural and organizational shifts needed for successful change managementLessons from working with global Fortune 500 clients👤 About Our GuestParijat Banerjee is the Global Head of Financial Services at LatentView Analytics, a data-native consulting firm helping some of the world’s most respected organizations harness the power of data for decision-making. With over 20 years of experience, Parijat leads transformation initiatives across analytics, AI, and digital strategy. 🔗 Connect with Parijat on LinkedIn☕ Sponsor SpotlightThis episode is proudly supported by BoulevardCoffee.co — a Women-Owned Small Business delivering handcrafted blends with heart. Support small business and grab your next cup of meaning at BoulevardCoffee.co.🎙️ Tune InSubscribe to Financial Forward wherever you get your podcasts. New episodes drop regularly featuring deep conversations at the intersection of finance, technology, and regulation.👉 Know a guest we should feature or a topic you'd like us to explore? Reach out to Jim McCarthy or follow us on LinkedIn.More from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/

Send us a textEpisode Title: Behind the Credit Curtain: Understanding Consumer Reporting with NCRA’s Eric Ellman Guest: Eric Ellman, President of the National Consumer Reporting Association (NCRA) Host: Jim McCarthy🎙️ Episode Summary:In this episode of Financial Forward, host Jim McCarthy sits down with Eric Ellman, the newly appointed president of the National Consumer Reporting Association (NCRA), to explore the often-overlooked yet critically important world of consumer reporting agencies.With more than 25 years of experience at the forefront of data policy and financial services—most recently with the Consumer Data Industry Association (CDIA)—Eric brings a unique lens to the complex network of companies that help banks, lenders, and employers make informed decisions. Now at the helm of NCRA, Eric is working to amplify the role of smaller, specialized consumer reporting agencies, particularly in the mortgage and tenant screening sectors.Whether you're a banker, a compliance executive, or a consumer navigating your financial journey, this episode demystifies how consumer data flows, what powers credit decisions, and how industry players are responding to growing regulatory scrutiny.📌 Topics Covered:What is the NCRA and who are its members?The difference between the “Big Three” credit bureaus and resellers/specialty agenciesHow consumer reports are created and used in the mortgage and employment industriesThe role of trade associations in shaping data policy and consumer protectionThe impact of CFPB regulations and evolving expectations around data accuracy and consumer rightsWhat bankers and consumer finance leaders need to understand about the data supply chainWhat consumers should know about how their credit and tenant reports are built and used👤 About Our Guest:Eric Ellman is the President of the National Consumer Reporting Association (NCRA). He previously served as Senior Vice President for Public Policy and Legal Affairs at the Consumer Data Industry Association (CDIA), where he led government affairs and served twice as Acting CEO. He is a veteran of the consumer reporting space and one of the country’s leading voices on data use, accuracy, and policy.🧠 Who Should Listen:Bankers and mortgage professionals seeking a deeper understanding of the consumer data pipelineCompliance and risk executives monitoring third-party data useFintech leaders building tools that rely on credit or background checksConsumers interested in understanding how their financial data is collected and used🔗 Resources Mentioned:National Consumer Reporting Association (NCRA)Consumer Financial Protection Bureau (CFPB)Consumer Data Industry Association (CDIA)📣 Subscribe & Follow:If you enjoyed this episode, be sure to follow Financial Forward on your favorite podcast platform. Leave us a review and share this episode with colleagues and friends in the financial services industry.More from Jim: LinkedIn: https://www.linkedin.com/in/mccarthyhatch/https://www.mccarthy-hatch.com/