Sat.May 20, 2023 - Fri.May 26, 2023

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Bankers: Please End This Practice. Or It Will End You.

Jeff For Banks

I recently spoke at a banking conference where I challenged bankers to end the practice of relying on sleepy depositors that don't demand top rate. You know, the practice of allowing bankers to raise deposit rates only if the customer calls and complains. When I challenged bankers that they can't claim to be trusted advisors to their customers if they engage in this practice, I got push back.

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Applying Second-Order Thinking In Banking

South State Correspondent

We have used the term “second-order thinking” in our writings, and some bankers were curious about what exactly we mean. The term came to popularity in banking after Howard Marks wrote his seminal work on investments – The Most Important Thing. The “most important thing,” as described in the book, is the ability to drill down in order to get to the heart of an issue.

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All Eyes Are on Bank Deposit and Liquidity Risks

Gonzobanker

Bank leaders are working overtime to defend their performance and relevancy. The historic deposit runs on several niched regional banks have woken up bankers and their investors, regulators and policymakers to the threats that liquidity flows place on the entire industry. Taking a step back and looking into reported financial data for Q1 2023, a few key insights appear: The banking industry lost a remarkable $1.1 trillion or 5.5% of total deposits from March 31, 2022, to March 31, 2023 – obvious

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SAFE Banking Act returns to Congress: Is safe harbor for cannabis banking on the horizon?

Abrigo

The SAFE Banking Act could bridge the state and federal cannabis banking gap Read more for the legislation's history and how it benefits financial institutions looking to profitably bank CRBs. You might also like this whitepaper, "Cannabis and financial institutions: Providing services to cannabis-related businesses." Download now Takeaway 1 Under current federal law, banks and credit unions face federal prosecution and penalties if they provide services to legal marijuana-related businesses.

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Digital Transformation: Accelerating ROI and Growth in Commercial Lending

Now is the time for lenders to prioritize their digital transformation initiatives in preparation for the lending rebound. Rising competition and ever-increasing customer demands for speed and efficiency are forcing financial institutions to embrace digital transformation. This shift can feel overwhelming—where do you begin? This infographic illustrates automation demands and shows you how loan document automation serves as an essential step to increase profits and provide the best lending exper

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Fintech settles allegations that payment of tips and donations was a hidden interest charge

CFPB Monitor

A fintech peer-to-peer lender has entered into separate consent orders with California, Washington D.C., and Connecticut relating to its practice of requesting tips and donations in connection with the loans offered through its platform. The fintech’s platform offers opportunities for members to act as borrowers or lenders and facilitates loans between its members.

More Trending

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NY Fed teams with Singapore on CBDC study

Payments Dive

The two central banks tested digital ledger technology for payments across multiple currencies in less than 30 seconds.

Study 396
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Promethium Subsidiary Receives First FINRA-Approved Digital Asset Custodianship

Perficient

Promethium Ember Capital, (“PEC”), a wholly owned subsidiary of Promethium, has become the first digital asset custody provider to come under federal regulation. PEC was approved as a special purpose broker-dealer (“SPBD”) for digital asset securities. The approval allows Promethium to custody digital asset securities on behalf of both retail and institutional clients.

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Commercial Credit Trends – Where to Tread Carefully

South State Correspondent

Lending is getting riskier. Due to higher rates, inflation, and a slowing economy, the three essential credit metrics – probabilities of default (POD), POD rate of change, and POD volatility- have all materially increased from 2022. In this article, we look at what is happening at the state level, look at 30 common industries where credit risk is rising, and 30 industries where credit risk is the lowest.

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2023 ATM Self-Service Software Trends Report to deliver key insights

ATM Marketplace

The 2023 ATM & Self-Service Software Trends Report aims to give key insights into the industry by surveying financial institutions and other companies on how they are utilizing self-service software. The survey for this report is open until May 31.

Software 107
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The State of Automation in Financial Services 2024 Report

In this report, you’ll find a comprehensive analysis of survey responses from executives at banks, credit unions, and insurance companies concerning their organization’s current and future use of automation. The report’s key insights include: Which types of automation are saving organizations the most time and money How to overcome the biggest barriers to automation implementation and adoption Why automation investments will continue to grow over the next few years How much you could save in 202

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Credit popularity doesn’t displace cash: Fed report

Payments Dive

Credit cards were the most used payment method last year in the U.S., but cash demand remains stable, a Fed report showed.

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Mortgage Lenders That Do Not Require Tax Returns

Commercial Lending USA

Mortgage lenders that do not require tax returns are a great option for self-employed individuals or those with non-traditional income sources. These lenders typically use bank statements and other financial documents to verify income instead of tax returns.

Taxes 94
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Housing Market Industry Group Urges Supreme Court to Preserve CFPB’s Mortgage and Real-Estate Regulations Regardless of Constitutional Question’s Outcome

CFPB Monitor

As the financial services industry continues to monitor the proceedings in Community Financial Services Association of America v. Consumer Financial Protection Bureau , an industry group composed of the Mortgage Bankers Association (MBA), National Association of Home Builders (NAHB), and National Association of REALTORS® (NAR) has filed a brief as amici curiae cautioning the Supreme Court against a ruling that could call into question all of the CFPB’s regulations.

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Bank Customer Experience Awards nominations close June 2

ATM Marketplace

The Bank Customer Experience Summit, held in Charlotte from Sept. 12 to 13, will honor innovators in the space of financial customer experience during an awards ceremony. You may nominate a technology provider or financial institution for an award, as long as it's submitted by the deadline of June 2.

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Register Now: Sneak Peek Into Close Automation SkyStem Web Demo

Technology is rapidly changing the way accountants perform and manage month-end activities. Spreadsheets, email, and shared drives no longer have to slow us down. Join us as we present a "sneak peek" recorded demo of SkyStem's month-end close solution – ART. In under four weeks, your team can start reaping the benefits of month-end close automation by vastly reducing spreadsheets, cut down on reconciliation work, speed up the month-end close, and better manage your remote team.

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Give EWA a chance

Payments Dive

“It is unclear why critics want to place EWA in the credit silo and call for heavy-handed regulations to restrict access to EWA products,” argues the CEO of the Innovative Payments Association.

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Memorial Day: Remember Sergeant (USMC) Rafael Peralta

Jeff For Banks

Rafael Peralta was born April 7, 1979 in Mexico City. He graduated from San Diego's Morse High School in 1997. But he had to wait to receive his green card before he could enlist. In 2000, he received it, and on that very day he enlisted in the U.S. Marine Corps as a rifleman. He would later become a U.S. citizen while serving. In 2001, Peralta was deployed overseas when his father died in a workplace accident.

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Department of Treasury Issues Strategy on De-Risking

CFPB Monitor

Report Offers Weak Insight on Causation but Lists Steps that Treasury Can and Should Take The Department of Treasury (“DOT”) recently released its first ever strategy report (the “Strategy”) on the topic of de-risking, taking the form of a 54-page document that combines a summary of the problem of de-risking with an overview of recommended steps to solve it.

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What's on the horizon for banking automation?

ATM Marketplace

Banking automation is here to stay. However, banks also have to deal with questions of how automation can impact their brand image and the customer experience. They also have to find the balance between delivering cutting edge technology while still keeping the personal touch.

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2024 Lending Outlook: Innovations and Evolutions in the Financial Sector

As we step into 2024, the lending landscape evolves rapidly with technology, regulations, and market dynamics driving change. For banks and financial institutions to stay competitive and meet the evolving needs of their customers, these drivers must be understood and engaged with. Lenders can anticipate significant transformation fueled by technological advancements, regulatory shifts, and changing consumer behaviors.

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Venmo to launch teen account

Payments Dive

The move is part of PayPal’s plan to lean on Venmo to lure more users.

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These 75 embedded insurance companies are transforming digital distribution

CB Insights

Embedded insurance — the integration of insurance into a digital product on a third-party platform or marketplace — is becoming more popular as a way to boost revenues and improve customer experiences. For consumers, these products can provide faster, more convenient, and more accessible insurance options. For insurers, embedded insurance can enable more product personalization (e.g. using payroll provider data for pay-as-you-go workers comp), improve underwriting accuracy (e.g. usin

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Department of Education releases proposed gainful employment rule for certificate and for-profit programs

CFPB Monitor

On May 17, 2023, the U.S. Department of Education (ED) released a Notice of Proposed Rulemaking intended to increase transparency regarding the costs and financial outcomes of postsecondary programs. The centerpiece of the proposed regulations is a Gainful Employment (“GE”) Rule, which would terminate access to federal financial aid for career training programs that fail to meet federal benchmarks.

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Flash loans, flash attacks, and the future of DeFi

BankUnderground

Aidan Saggers, Lukas Alemu and Irina Mnohoghitnei Decentralised Finance (DeFi) may seem a tempting option for those seeking financial gain, autonomy, and self-governance… But how safe is a world in which ‘ code is law ’? Closer inspection reveals an ecosystem experiencing several hacks, attacks, and fraud. Estimates show at least US$6.5 billion has been stolen since DeFi’s inception, and one particular DeFi feature is often at the centre of this theft – flash loans.

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Why Is CRE Lending Stuck in the Past? Top 3 Reasons for Digital Resistance

Commercial lending is on the verge of a resurgence, but traditional processes are an obstacle. Explore the top 3 reasons for resistance to digital transformation and how overcoming them can pave the way for growth and efficiency. Discover why embracing automation and digital solutions is crucial for success in today's competitive landscape. Discover how GoDocs helps commercial lenders in the digital era with seamless integration and a borrower-focused approach.

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Cash App pursues older, affluent customers

Payments Dive

The Block business is seeking older, higher-income users as it pursues diversified growth, CEO Jack Dorsey said.

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3 Key Ingredients to a Winning Fintech PR Strategy

William Mills

Public relations programs will always vary based on a fintech’s unique goals and market position. But, whether it’s a startup or a more established company, with one competitor or hundreds, organizations’ public relations programs should focus on a three-pronged approach: building brand awareness, educating key audiences and establishing credibility.

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Kansas Passes an Act Requiring Mortgage Companies, Supervised Lender, and Money Transmitters to Create Information Security Standards Consistent with GLBA’s Consumer Information Safeguard Rule

CFPB Monitor

On April 24, the Governor of Kansas signed into law Kansas Senate Bill 44 , which enacts the Financial Institutions Information Security Act (the “Act”). The Act requires credit services organizations, mortgage companies, supervised lenders, money transmitters, trust companies, and technology-enabled fiduciary financial institutions to comply with the requirements of the GLBA’s Safeguards Rule, as in effect on July 1, 2023.

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Bank of England set to decline Revolut's application for banking licence

The Paypers

The Bank of England has told the Treasury that it is planning to reject Revolut 's application for a banking licence, after a two-year campaign by Britain's most valuable fintech company.

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Addressing Top Enterprise Challenges in Generative AI with DataRobot

The buzz around generative AI shows no sign of abating in the foreseeable future. Enterprise interest in the technology is high, and the market is expected to gain momentum as organizations move from prototypes to actual project deployments. Ultimately, the market will demand an extensive ecosystem, and tools will need to streamline data and model utilization and management across multiple environments.