Will U.S.-based financial organizations be ready?
Global Economy: Trade is growing globally in today’s scope of consumer lending. There are many reasons for this growth, not the least of which is technology. Due to enhanced communication opportunities today, international trade is much more practical. Now more than ever, consumers and businesses have access to the very best products from many different countries. Expanding technology has also increased the competition among countries as to who can produce the newest or best technology. To develop the accommodations of the new trade, countries in the last several decades have taken increasing steps to promote global trade.
Foreign exchange transactions are becoming more and more common with the ease of automated online lending. Will the foreign lenders continue to attract the attention of the American purchasers? We have already seen an increase in foreign transactions with the purchase of online goods, and air/travel reservations.
Who protects the consumer who accesses the international lending opportunities? The globalized trade market is currently governed by the Federal Trade Commission (FTC). The FTC focus is to protect the consumer from harm, while enhancing the economic benefit and the choice of the consumer.
International lending has opened up crime-based activity to a global environment, allowing traditional theft to emerge on a whole new level. Will this type of fraud and theft in the global market change the rules of international lending? There may be a chance the FTC steps in and changes the way we are lending and funding loans or purchases. Will you be ready to comply?
With consumer protection laws continually on the rise, how will this affect the international lending laws? Will the U.S. become adaptive to the way of our international lenders? It would appear that the U.S. consumer lending laws are sophisticated, while allowing the flexibility and ease of use to fund a consumer loan... as long as the rules are followed.
It may be that the future of our lending practice is in the hands of the prevailing financial system (that may not be the U.S.) and that all countries are held to the same consistent lending practices. Will your credit union be ready to comply with a mandatory international consumer lending standard?
Here is where the good news comes in. Your credit union’s lending operations may be affected by the ongoing global financial industry changes, and today your forms remain compliant with current credit union rules and regulations, especially if provided by Oak Tree. Rest assured that Oak Tree is continually “trend watching” and will be at the forefront of any changes to your forms brought about by any source, including international trends .
Chat with us at www.OakTreeBiz.com to find out how to be prepared for any change, whether it be local or global. Oak Tree Business Systems, Inc. is always ready to provide you with the most relevant credit union industry information.
To read similar articles please visit Oak Tree Business Systems, Inc. August 2016 Advantage – The Lending Olympics.