FDIC's Synapse rule, a Treasury breach: Top tech news January 2025

The article provides an overview of significant developments in the banking and financial technology sectors as of January 2024. Key topics include Capital One's five-day outage, which underscores the risks associated with third-party vendors like FIS, and Fiserv's appointment of Michael Lyons as CEO, affecting succession planning at PNC. The Treasury Department's cybersecurity breach highlights vulnerabilities that banks face, while Jenius Bank's success in offering high savings rates demonstrates the potential of digital banking. The FDIC's Synapse Rule poses challenges for banks and fintechs in managing custodial deposit accounts.

Additionally, the article discusses the impact of AI on banking jobs, with predictions of significant job displacement, and the growing interest in payments technology, driven by real-time payments and blockchain. Stripe's use of machine learning to combat payments fraud and Regions Bank's efforts to enhance open banking capabilities through partnerships with data integration providers like Axway are also highlighted. These developments reflect the ongoing evolution and challenges in the banking and fintech industries.

Key takeaways

Capital One and 26 other banks experienced outages starting Jan. 15 due to a power outage and hardware failure at FIS.
FIS provides banking operations and payments services to over 5,800 companies and processed $12 trillion in 2023.
The incident highlighted issues of technical resilience and third-party risks in the banking sector.
Regulators have been giving special attention to these issues in recent years.

FDIC's Synapse rule, a Treasury breach: Top tech news January 2025

Key takeaways

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