Frank Rotman

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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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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Myth 3 CDFIs have high default rates ❌ Compared to mainstream finance providers CDFIs typically have comparable or lower default rates for similar market segments. This is because CDFIs: Use robust credit assessment processes, often using open banking data to get a more up-to-date picture of an individual's or business's financial situation, before making a decision. Default rates may seem higher but CDFIs work with their customers for longer to arrange a workable repayment plan and get them back on track, rather than writing off the loan right away. Provide support and flexibility, so the likelihood of defaulting is reduced. And our latest impact report showed that the majority of customers end up repaying their loan with the CDFI. #CDFIs #ResponsibleFinance

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Jack Henry released its Strategy Benchmark report with the top strategic priorities for bank & CU CEOs in 2024 and 2025. Here’s the rundown 👇 The top strategic priority is growing deposits. Increasing operational efficiency is next. The top two concerns are Net interest margin (NIM) compression & deposit attrition/displacement. COMPARED TO BANKS, CUs ARE: ◆ More bullish on growing tech budgets ◆ Allocating more money to data analytics & automation ◆ Giving outsized priority to AI investments Our take 👉 We see it too. CUs seem more willing to invest in tech that improves the account holder experience. Ease of use is critical for them. And, they’re deep into their data & focused on deepening relationships by serving members better. YOU CAN’T GROW WITHOUT DATA According to the report, you only have 10% to 20% of your accountholders’ financial data. That makes it hard to leverage AI unless you supplement your data via open banking or another means. The report states the average accountholder has 14 financial apps on their smartphone & 15 to 20 relationships spanning the financial services spectrum. Their money & financial data are spread across disparate card issuers, brokers, payments apps, neobanks, digital wallets, HSAs, & 401(k)s. This fragmentation makes it difficult for accountholders to understand where they stand with their money, much less what to do next or how to improve their financial health. Our take 👉 Customers & members are cheating on their banks & CUs. They value what fintechs offer, but their lives have gotten pretty complicated managing it all. They’re dying for someone to pull it all together for them. They’re craving advice & guidance. Community institutions can win here. SO, HOW DO FIs PLAN TO GROW? ◆ 90% of FIs plan to serve a niche market over the next two years. (Banks & CUs both want to seize the SMB opportunity.) ◆ 92% of FIs plan to embed fintech into their digital banking experiences. ◆ Just 30% of FIs cite BaaS plans. Our take 👉 Niche strategies can be brilliant. After all, it’s hard to be everything to everyone. By taking a focused approach, FIs can better differentiate their products and their brands. What’s another way to grow? Lose less. Stem attrition & truly engage your unprofitable customers & members. Double down on driving ORGANIC GROWTH. Get the full report: https://lnkd.in/g7mvYASQ #banking #communitybanks #creditunions #fintech

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Macha, Inc. and PaymentsFirst, Inc. to Merge Combination Creates Dynamic Payment Association Macha, Inc. ("Macha") and PaymentsFirst, Inc. ("PFI") announced today that their respective Boards of Directors have approved a merger agreement under which the two payment associations will combine. Macha's wholly-owned subsidiary, Payment Advisory Resource ("PAR"), will continue to offer audit and consulting services under the combined payment association. "Our organizations have very similar cultures and approaches to education, advocacy, and member-oriented service, and this merger gives us the strength and resources to remain competitive going forward.," said Mary Gilmeister, President and CEO of Macha. Rich Leary, President and CEO of PFI added, "I am excited to partner PaymentsFirst’s, education, member services, proprietary audit and risk assessment software, and industry leading AI utilization with all the exceptional services Macha offers to their members." Gilmeister will serve as the CEO of the resulting entity, and Leary will serve as the President. Leary noted, "I’ve collaborated with Mary Gilmeister on many industry initiatives over the past 30 years and am truly looking forward to bringing our teams together to serve our combined members." Gilmeister observed that "Rich Leary and his team have built a legacy with PFI that makes it a perfect fit for Macha and we look forward to working together and carrying that forward." The merger is subject to approval by the members of both Macha and PFI in accordance with their respective bylaws. The votes are expected to occur in the 3rd quarter of 2024 with consummation to follow shortly thereafter. Reinhart Boerner Van Deuren s.c. served as Macha's legal advisor. Adams and Reese LLP served as PFI’s legal advisor. ### About Macha Macha was formed in 1975 and has more than 500 members. Macha, directly and through PAR, offers its members support on all payment systems, education, audit, risk and consulting services. www.macha.org. Contact Mary Gilmeister at (262) 345-1245 or mgilmeister@macha.org. About PFI PFI was formed in 2015 and has more than 650 members. PFI offers its members support on all payment systems, education, audit, risk, and consulting services. www.paymentsfirst.org. Contact Rich Leary at (678) 528-3234 or rleary@paymentsfirst.org. View the full press release here: https://lnkd.in/ec2g97Ak

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What's in store for ACH systems in the future? This blog offers compelling views from the Federal Reserve Financial Services and Alacriti. #ACH #payments #fintech

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🚀 Exciting times ahead in the world of fintech! Plaid has released an insightful article detailing 10 key fintech trends for 2024. From the mass adoption of fintech apps to the rise of alternative credit score methods, these trends are set to reshape personal finance and enhance financial stability for consumers everywhere. 📱💳 Highlights include: - Increased reliance on multiple fintech apps for managing finances 📊 - Emergence of new payment technologies becoming as commonplace as credit cards 💸 - Alternative credit score methods revolutionizing consumer credit 📈 Stay ahead of the curve and explore these trends to better navigate the future of finance! #FinTech #PersonalFinance #DigitalBanking #FinancialInclusion #EmergingPayments 

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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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There is no perfect solution to the build vs. buy dilemma—only trade-offs. In our newest blog article, we outline three major trade-offs that fintechs should consider when deciding between building their own credit platform or buying from an existing vendor. Read here to learn more: https://lnkd.in/g9f9sBUQ

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This strategy is part of a larger movement to embedded financing from fintech and Saas providers to fill the gaps in small business financing across the country and beyond. https://lnkd.in/eHc7xUZq Stripe #embeddedfinance #fintech #businessloans

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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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🚀 Make business payments easy with Cratoflow’s ACH Solution! 🚀 . . ACH payments are not only cost-effective but also secure, making them a preferred choice for businesses. However, traditional ACH processing times can be a bottleneck. We’re changing that. 🌟 Why You’ll Love Cratoflow: ✅ Speed: Process payments in just 2 days. ✅ Efficiency: Reduce manual intervention with our automated system. ✅ Accuracy: Minimize errors and ensure precise transactions. Ready to transform your payment processes? Get in touch with us today and experience the Cratoflow advantage! https://lnkd.in/g4fmY8cF #Fintech #AccountingAutomation #ACHpayments #Cratoflow #Efficiency #BusinessGrowth #PaymentProcessing #AccountsPayable

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Ever wondered about the best way to send or receive money electronically? 🤔 Our latest blog post breaks down the key differences between ACH and wire transfers. Both methods are convenient and card-free, but choosing the right one really depends on your specific needs. In this blog you'll learn about: ‣ How each transfer method works ‣ Key similarities and differences ‣ Factors to consider when choosing Make informed decisions for your business's #financial transactions. Read more ⤵

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ACH has become a revenue generator for financial institutions through commercial transactions, government payments, and vertical-specific uses like healthcare and payroll. With unprecedented payments growth, a critical question emerges: Are banks' ACH payment platforms equipped to handle this explosive growth and meet changing demands? Our latest blog explores how financial institutions can speed up ACH modernization plans. Read the latest below. #ach #instantpayments #payments https://hubs.la/Q02HzTXM0

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🚀 New blog: API Strategy for Open Banking Regulations in the U.S. - Preparing for FDX and CFPB 1033 By Kent Brown 📜 This fall, the CFPB expects to implement the Section 1033 rule under the Dodd-Frank Act - a monumental ruling for promoting open banking in the U.S. But are community banks and credit unions read? Key Points: 🌎 Global Regulations: Initiatives like Europe’s PSD2 and the UK’s Open Banking Standard set the stage for open banking. 🏢 Fragmented U.S. Adoption: Initially driven by fintechs like Plaid, the U.S. lacked a unified standard. 🔌 PortX’s ORCA: Developed to standardize core banking integrations, aligning with ISO 20022 for semantic compliance. ✅ FDX Momentum: FDX promotes secure APIs over screen scraping, aiming to establish a unified open banking standard in the U.S. 🗓️ Strategic Preparation: FIs need to adopt secure, API-based data-sharing capabilities to meet new regulatory demands and build consumer trust. 👉 Read the article here: https://lnkd.in/gPk9Dbxq #OpenBanking #APIStrategy #FDX #CFPB1033 #Fintech #FinancialInstitutions #BankingInnovation

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