Frank Mastrangelo

To the likely surprise of providers of buy now, pay later (BNPL) financing, the #CFPB recently issued an interpretative rule stating that BNPL products are actually "credit cards" under the Truth in Lending Act and BNPL providers are "card issuers" and therefore "creditors" under, and subject to, Regulation Z. Scott Pearson, Bryan Schneider and Eric Knight explain the significance here:

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Each handbook contains all the knowledge necessary for compliant ACH operations in a condensed format that is more easily referenced and digested by the Originator. It includes an overview of the ACH Network, its participants, and why it is a safe, efficient payment system. 🔗Link to purchase: https://lnkd.in/gMM_r_Jr #Payments #Publications #Origination #Handbook #ACH

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New Challenger Bank SilverRock Bank Obtains Banking License  Alan Jarman, CEO of SilverRock, commented: “This is the first time that a bank has been established in the UK to focus support on non-bank and other lenders. This is already a £250 billion+ market which has the potential for significant expansion as the sector responds to new and emerging customer needs. “Our focus is on ensuring the borrowing needs of SMEs and consumers in non-standard credit markets can be met. That approach will in turn support and facilitate innovation amongst lenders, enabling them to better respond to the challenges and opportunities in the UK market.” https://lnkd.in/eB_F_isu Veronika Lovett #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Finagy's suite of Fast Funds solutions redefines direct bank-to-bank transactions, empowering you and your customers with unparalleled efficiency in payments and collections: ▶️ Next-morning ACH funding, eliminating the need for reserves. ▶️ Same-day posting for both ACH credits and debits. ▶️ Round-the-clock ACH credit and debit transfer capabilities, operating 24/7/365. ▶️ Non-returnable ACH transactions, offering guaranteed security. ▶️ Enhanced electronic funds transfers through digitized paper checks (Check21), ensuring faster and more secure processing. Our unified approach simplifies the financial transaction ecosystem: a single agreement, seamless integration, one access point, consolidated billing, and a comprehensive dashboard. For those seeking an alternative to the complexities and costs associated with card transactions, Finagy presents a sophisticated collection of low-cost, bank-to-bank payment solutions. Explore the future of financial transactions at Finagy.com. #ElectronicPayments #EFT #DigitalPayments #BankingTechnology

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Same Day ACH v RTP - Battle Round 1Q 2024 I look at Faster Payments trends on a quarterly basis. One of the ongoing questions I struggle with is the need for #Realtimepayments v #fasterpayments. Most #Banks and #creditunions offer ACH and Same Day ACH already. So the question many ask ....... Do I need to add The Clearing House RTP or Federal Reserve Board Fed Now or does #SameDayACH suffice for most of our clients? The Stats- Same Day ACH volume is up 47% YoY on a basis of $565B TCH is harder to get, but it looks like 61% YoY ($42B v $26B) Same Day continues to grow volume at >40% is about 17x bigger than #RTP. Clearing House is growing RTP at about 61% off a base of 26B. The 14% higher growth rate, while impressive, is not really a fair comparison. For context Same Day ACH GREW volume by more than 3X TOTAL RTP volume. So What? - RTP represents about 6% of Same Day ACH Volume up from about 4% last year. I believe much of the RTP growth has been a function of many banks and credit unions adding it along with their #FedNow launch. I will be curious to see how these growth curves continue to trend and if true use cases for Real-Time V Faster becoming compelling enough to shift this volume rather than both just replacing and disrupting checks and other non-digital payments. Do you think the Real-Time Payments use cases will displace the Faster Payments growth that is already happening. Or is Real-Time a solution looking for a problem? Jessica Pinkston Kevin Von Holten Brandi Gregory Lindsay Hooks Mary Wisniewski

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FedNow? The who and the what now? You may have heard of this (nearly) instant payment system going into effect - but how does it work, when does it work, and do FFCCU members benefit from it? We dig in to all your #FedNow questions in this recent blog post: https://hubs.li/Q02zSXcf0 #FFCCU #creditunion #savingsaccount #checkingaccount #instantpayments #creditunions #CUdifference #ILoveMyCreditUnion

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Small Business Lending Is Crucial in Fighting the Deposit Wars This Gonzo Banker article talks about how banks must develop a strategic approach to capture the small business lending market. By targeting underserved niches, employing dedicated teams, and leveraging automation, banks can streamline processes and reduce costs. The key is integrating technology and data-driven strategies to identify and prequalify potential borrowers. Discover in this article how to seize this market advantage. #SmallBusinessLoans #SmallBusinessLending #BankingStrategy https://lnkd.in/gytvkp78

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Flybits Announces Integration with Q2’s Digital Banking Platform Banks and Credit Unions can now deploy Flybits’ cutting-edge solutions through Q2’s Digital Banking Platform to enhance and grow customer relationships through data-driven personalization. Flybits’ solutions enables financial institutions to: -Rapidly deliver deposit, auto-savings and investment use cases -Manage the cardholder lifecycle at each critical touchpoint -Launch data-powered alerts and notifications -Apply AI in safe and secure ways to enhance personalized banking -Curate zero-party customer data to improve segmentation and personalization -Provide a completely custom experience to every banking customer If you are a Q2 digital banking customer, we should talk. Talk to our solutions team to learn more - https://lnkd.in/gZF93FyC Read full article - https://lnkd.in/g5BB9vkC #Fintech #Personalization #Q2 #Digitalbanking #Flybits #UserExperience #AI

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Consumer Financial Protection Bureau Takes Action to Ensure Consumers Can Dispute Charges and Obtain Refunds on Buy Now, Pay Later Loans “When consumers check out and choose Buy Now, Pay Later, they don’t know if they will get a refund if they return their product or whether the lender will help them if they didn’t get what was promised,” said CFPB Director Rohit Chopra, CFA. “Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under longstanding laws and regulations already on the books.” https://lnkd.in/eMdDH3Re #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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The #CFPB issued an interpretive rule describing how lenders issuing digital user accounts to access credit are also “creditors” subject to subpart B of Regulation Z. The rule makes clear that lenders issuing BNPL products and other digital user accounts to access credit will be regulated like credit card providers. Read more in this #clientalert: https://ow.ly/8IYm50RTU3w #legalnews

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It's a difficult thing in the digital world for banks to attract young consumers — and garner the loyalty of kids while they're young. U.S. Bank has found a promising solution through a partnership with fintech Greenlight. By integrating Greenlight's accounts and services into its own mobile banking app, U.S. Bank aims to attract the next generation of customers while providing valuable financial education and practical money management experience for kids The partnership addresses a critical gap in traditional banking offerings: the lack of transaction accounts for children. With Greenlight's debit card and money app, kids as young as 10 can learn to handle money and transact cashlessly, all while being subject to parental oversight. Parents can set spending limits, monitor transactions, and establish savings goals for their children, fostering financial responsibility from an early age. U.S. Bank sees two key benefits in this partnership. First, it differentiates the bank's "Bank Smartly" accounts, potentially attracting and retaining depositors who value financial education for their children. Second, by engaging with kids through Greenlight, the bank hopes to establish itself as the go-to institution when these young customers are ready for their first checking account. Greenlight's Brandon Horne, general manager of partnerships, emphasizes that the company's bank and credit union partnerships are an additional channel for growth, not a strategic shift. By embedding the parental experience in the bank's app, Greenlight gives financial institutions more ownership in the customer experience and facilitates a smooth transition as kids approach adulthood. Learn more in the full article by Steve Cocheo:

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We've crunched some numbers and the results were even beyond our expectations... 🚀 Pulsate's most active users surpassed their credit union peers by more than 15X when it comes to year-over-year growth in "Average Member Relationship"! If your FI is struggling to keep your products top of mind in your consumers' moment of need, book a demo to see how Pulsate can help. [Link in the comments] #ConsumerEngagement #MemberEngagement #DigitalEngagement 

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🚀 Brand new blog post on modernizing #ACH processing for banks and credit unions from Kent Brown (CTO) and Blake Herring (Staff Engineer and ACH Expert). 🌐💸 The Automated Clearing House (ACH) network is the backbone of electronic payments in the U.S., but it's facing significant challenges in today's digital age. 🔍 Explore the Challenges: Learn about the obstacles banks and credit unions face with outdated ACH processing systems and how manual entry woes impact operational efficiency. 💡 The Solution: Discover how Payment Manager bridges the gap between traditional banking systems and modern digital environments, offering advanced features like API-driven initiations and automated processing. 📈 Results and Impact: Dive into the transformative results experienced by our customers, including boosted operational efficiency, increased reliability, and enhanced transparency. 🔑 Why It Matters: Understand why modernizing ACH processing is crucial for community banks and credit unions to stay competitive in today's rapidly evolving financial landscape. Read the blog and start a conversation: https://lnkd.in/gFtPAFvg #ACH #Fintech #Innovation #Payments #DigitalTransformation #banking #creditunions

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The Consumer Financial Protection Bureau’s new interpretative rule regarding BNPL reveals new requirements for BNPL providers under Regulation Z. With less than 60 days left before the rule takes effect, BNPL providers need to quickly rework their card programs and align their servicing processes to comply with Regulation Z. Our blog post explains what BNPL providers can expect with the change and the solutions LoanPro offers to seamlessly implement these new compliance measures into their credit products. Read here: https://lnkd.in/gm5yHiRz

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