financial services – Innovative Words http://innovativewords.com/ Mon, 21 Mar 2022 13:55:14 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://innovativewords.com/wp-content/uploads/2021/04/default.png financial services – Innovative Words http://innovativewords.com/ 32 32 How to Improve FinTech Automation https://innovativewords.com/how-to-improve-fintech-automation/ Mon, 21 Mar 2022 13:00:32 +0000 https://innovativewords.com/how-to-improve-fintech-automation/ There are few areas of business, or even of life as a whole, as important as finance. Financial needs are a common concern for all. This makes it a natural opportunity for tech to make a difference, whether it’s helping with consumer financing, corporate tax concerns, or anything in between. Although the fintech revolution is […]]]>

There are few areas of business, or even of life as a whole, as important as finance. Financial needs are a common concern for all. This makes it a natural opportunity for tech to make a difference, whether it’s helping with consumer financing, corporate tax concerns, or anything in between.

Although the fintech revolution is well underway, it still has a long way to go before it can catch up with cutting-edge technology. Here are some suggestions for areas that need improvement, now and in the future, to help accelerate fintech automation.

AUTOMATED INTEGRATION

Fintech often operates in its own bubble. Accounting services can be essential to a business. And yet, they often remain isolated from other areas of a company. This creates siled information that can restrict business activity.

Many companies have turned to IPaaS solutions to help unify their organizations. The acronym stands for “integration platform as a service”. It is a cloud-based software solution that helps integrate the various software tools used by a business. It connects applications, maps data, and moves data between different API endpoints as needed.

The IPaaS concept has been around for a while. In fact, it is already expanding further into new integration-focused automation platforms. These further streamline the connection between applications and the exchange of information.

That said, fintech still lags behind IPaaS technology in many ways. If fintech is to keep pace with the rest of the tech industry, it needs to grow in the key area of ​​automated integration. The ability to integrate and share information with other tools is an essential element that fintech must adopt to keep pace with a data-driven future.

APPLICATION AUTOMATION

Another area where fintech needs to improve is in verifying sensitive data. The SolarWinds hack served as a stark reminder that cybercriminal activity lurks behind every corner of the internet. And, of course, this only serves as a reminder, as consumers have been dealing with an endless stream of cybercrime news for years. It seems that every two months a major hack is announced to the public.

The point is, it’s understandable that banks and financial institutions are reluctant to put such sensitive activities as vetting and approving applications on autopilot. If cybercriminals hacked into a financial system, this could be a serious problem. According to identity verification platform Okta, nearly 60% of customers are hesitant to do business with any company that has suffered a data breach. However, the percentage of mistrust rises precipitously when a breach occurs in the financial services industry.

Nevertheless, the concept of automation naturally applies to mundane activities, such as the application approval process. This is an area that needs improvement as lenders try to process an endless stream of applications.

That said, it’s not an untouched segment of fintech automation. Currently there are software solutions that automate the verification of various consumer financial applications. However, the activity remains cloudy and unreliable for many consumers.

The financial industry needs a stronger and more reliable solution. If fintech companies can create a reliable automation process, it can allay consumer fears. It can also encourage financial activity by speeding up approval time and reducing human error.

RPA MUST BECOME THE GENERAL PUBLIC

Robotic process automation (RPA) has been growing for quite some time. What started as a field of research has turned into real-world application, albeit at a slow pace.

Despite its slow development, RPA continues to be one of the most promising ways to reduce operating costs. It also helps to increase the efficiency of banking operations. The ability to use AI and machine learning to perform a variety of mundane tasks is an essential next step in fintech automation.

Growing areas such as data analytics and process mining need to find greater applications within existing banking services. The insights produced by these disciplines should easily integrate into machine learning and AI tools. This can help organizations identify and improve their operations from within.

FINTECH MUST ALSO ADOPT EXTREME AUTOMATION

Those operating at the forefront of the financial industry are familiar with the current applications of RPA, limited as they may be. But even when existing solutions appear, these are too often applied to internal operations like those listed above.

Those who are serious about taking fintech to the next level should be looking for ways to use the latest RPA technology across their entire business. They need to embrace the concept of extreme automation by looking for every way to integrate robotics into their systems.

For many, this will require a step back. The haphazard development of many RPA concepts has left a patchwork of solutions. As fintech automation improves, financial institutions need to find ways to apply new technology to customer-facing activities as well.

This ability to apply automation throughout the customer lifecycle suits few industries more than the world of finance. The industry can be cold and calculated, operating on financial and mathematical concepts that are ideal for the robotic management of many customer interactions.

That said, RPA can and should be applied to more than just streamlining internal operations within a banking organization. They should also find uses in customer acquisition, conversion and retention. From analyzing data to automating mundane procedures, extreme RPA automation is a reality that has the potential to revolutionize the fintech industry.

Fintech has already come a long way. From online banking to managing digital interactions and everything in between, there are countless ways technology is impacting the financial industry.

However, the effective use of automation is necessary if fintech is to take the next step. And if fintech hopes to keep pace with the rest of the tech industry, tools like extreme RPA automation and automated onboarding are needed.


Chalmers Brown is Due’s Chief Technology Officer.

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Top 10 Fintech News for the Week Ending March 19, 2022 https://innovativewords.com/top-10-fintech-news-for-the-week-ending-march-19-2022/ Sat, 19 Mar 2022 16:11:37 +0000 https://innovativewords.com/top-10-fintech-news-for-the-week-ending-march-19-2022/ Lots of crypto-related news this week with a huge round of ConsenSys, the EU taking legislative action and everyone wondering what Apple has planned when it comes to crypto. There was also CFPB news on BNPL, a new AML passport for DeFi and more. Here are what I consider to be the top ten fintech […]]]>

Lots of crypto-related news this week with a huge round of ConsenSys, the EU taking legislative action and everyone wondering what Apple has planned when it comes to crypto. There was also CFPB news on BNPL, a new AML passport for DeFi and more. Here are what I consider to be the top ten fintech news stories of the past week.

Microsoft dives into Web3 with investment in Ethereum co-founder’s ConsenSys startup from CNBC – Blockchain leader ConsenSys has raised $450 million from Microsoft, SoftBank and Temasek, valuing the company at $7 billion.

The EU has voted not to ban bitcoin Protocol – The European Parliament voted this week to advance what is known as Crypto Asset Markets (MiCA) legislation, omitting the proof-of-work ban that would have effectively banned bitcoin from the region.

Apple Is Crypto’s Biggest Wildcard from Bloomberg – It’s interesting to me that the biggest tech company in the world has pretty much ignored crypto to date. But as the author acknowledges, with over a billion iPhone users, Apple could easily provide a user-friendly way to bring users into the crypto economy. Which could bring more new customers to iPhone.

CFPB urged to act quickly to buy now/pay later loans from American Banker – The CFPB opened an investigation into the BNPL industry in December. With public comment due to end next week, the CFPB could quickly provide a report on what it wants to do here.

Quadrata launches data passport for AML in DeFi from LendIt Fintech News – One knock on DeFi is that it is completely anonymous and there is no easy way to perform KYC or AML verifications. Startup Quadrata is looking to change that, working with Spring Labs and TransUnion to create a non-tradable NFT that will represent KYC information.

Andreessen, Eldridge Value Cross River Bank at over $3 billion From Bloomberg – Cross River Bank continues to lead all fintech-focused banks and this week it was reported that the company was close to closing a deal to raise more than $600 million from Andreessen Horowitz, Eldridge Industries and T. Rowe Price at greater than a $3 billion valuation.

OppFi seeks injunction over loan interest rate caps from PYMNTS.com – Last year, the FDIC and OCC reaffirmed the “valid when done” doctrine for loans issued by banks and sold to fintechs. Recently, California lost its lawsuit against the FDIC challenging this, so now OppFi is going after California over its interest rate caps.

ClearBank, a UK banking rail provider, raises $230m from Apax to expand in Europe and the US from TechCrunch – ClearBank made a name for itself in 2016 when it became the first new UK clearing bank in 250 years and is now aiming for international expansion. The company has raised £175m from private equity firm Apax Partners to enable the expansion.

Green dot, Plaid will provide financial services to the underbanked from American Banker – Green Dot serves many underbanked consumers in 90,000 outlets, including Walmart stores. Now, they are partnering with Plaid to make it easier for their customers to access fintech services.

American Express Reportedly Filed Trademark Applications to Register Services in the Metaverse from Crowdfund Insider – This week it was revealed that American Express had filed seven trademark applications for banking services in the metaverse, including NFT authentication, virtual payments and other crypto services.

Every Thursday, the LendIt Fintech News team and a special guest discuss the week’s news live on LendIt TV, YouTube, LinkedIn and Twitter. We have now made the show available in podcast format – click on the audio player below.

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BlockFi Review 2022 | NextAdvisor with TIME https://innovativewords.com/blockfi-review-2022-nextadvisor-with-time/ Wed, 16 Mar 2022 18:39:00 +0000 https://innovativewords.com/blockfi-review-2022-nextadvisor-with-time/ Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. BlockFi could be a good choice if you are looking to exchange […]]]>

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money.

BlockFi could be a good choice if you are looking to exchange your crypto without complicated fees and are interested in a credit card with crypto rewards.

BlockFi is based in Jersey City, New Jersey, and was founded in 2017. BlockFi has garnered attention for its high-yielding crypto interest accounts, from customers as well as the Securities and Exchange Commission. He’s also had complications with his loan product, though that might not be a problem for most mainstream investors who just buy and hold for long-term value growth.

The company recently settled with the SEC after being accused of failing to register its retail crypto lending product, among other issues. BlockFi has agreed to pay $50 million in fines to the SEC and an additional $50 million to 32 states, the SEC announced in February. The settlement also required BlockFi to stop offering BlockFi Interest Accounts to US-based users.

We contacted BlockFi for comment on the SEC matter, and the company said in a statement that it is working to bring its product into regulatory compliance and register with the SEC under the appropriate statutes, after which it aims to reissue its interest in crypto-earning products to US customers.

“From the day we launched BlockFi, we always knew that strong engagement with regulators would be essential for the adoption of cryptocurrency-powered financial services,” said BlockFi CEO and Founder Zac Prince. , in the statement provided. “We intend BlockFi Yield to be a new SEC-registered interest-bearing crypto security that will allow clients to earn interest on their crypto assets.”

Despite outstanding issues with its crypto lending and interest accounts, BlockFi offers a relatively straightforward crypto trading experience, especially when it comes to how it incorporates its trading fees into overall crypto prices. Combine that with its BlockFi Rewards Visa Signature credit card, and it could be an attractive option for crypto investors.

Advantages and disadvantages of BlockFi

Benefits

  • No trading fees

  • Instant trade execution

  • Rewards credit card

BlockFi at a Glance

  • Less than 20 cryptocurrencies available
  • No trading fees, but there are withdrawal fees
  • Ability to borrow using crypto as collateral
  • Hold coins in BlockFi’s custodial wallet or move them to your own wallet
  • Minimum transaction amount of $20
  • Apply for a rewards credit card

Cryptocurrencies available on BlockFi

BlockFi doesn’t offer many cryptocurrencies, although it does have some of the most popular, including:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Bitcoin Money (BCH)
  • Pax Gold (PAXG)
  • Uniswap (UNI)
  • DAI (DAI)
  • Chain link (LINK)
  • Basic Attention Token (BAT)
  • Algorand (ALGO)
  • United States dollar coin (USDC)
  • Tether (USDT)

BlockFi fees

BlockFi does not charge trading fees. Instead, the spread cost, or the difference between what it costs and what you pay, is built into the listed price, and you might find cheaper cryptos on other exchanges. The prices you can trade at may be different from the market price you see listed, so take note of the actual price you are trading at, rather than the current price. This will help you keep your records and help you stay on top of your transactions.

Withdrawal fee

There are no fees for withdrawing to a bank account via an ACH transfer, although you will see a $20 fee for national transfers.

If you decide to withdraw crypto to an outside wallet, you will pay a withdrawal fee based on the cryptocurrency involved, and you may be subject to a withdrawal minimum and limit. Although this does not affect many everyday investors, for example, you can only withdraw up to 100 BTC per seven-day period.

Some assets allow one free withdrawal per calendar month on BlockFi, including:

Other assets, like ETH, LINK, PAXG, UNI, and BAT do not come with a free withdrawal option, so you will still pay the withdrawal fee.

Withdrawal fees are charged in the associated cryptocurrency. So if you withdraw ETH, you will pay a fee of 0.015 ETH. However, fees and limits may change in the future, so check the terms before moving assets from BlockFi to your own wallet.

BlockFi Security

BlockFi operates a custodial wallet. When you send US dollars to BlockFi, it’s converted to the same amount represented by a stablecoin pegged to the US dollar. Your stablecoin is actually what you trade when you buy other cryptos with your BlockFi account.

Your assets on the platform are actually owned by a regulated depository, including Gemini, which is a BlockFi partner. BlockFi touts its Gemini partnerships as an example of how its coordination with other industry-leading crypto companies provides users with increased protection and security. BlockFi also offers security measures, such as allowing you to set up your account to only withdraw to approved wallet addresses. This reduces the chances that someone hacking into your account can withdraw from your wallet to an address that is not on the whitelist. Additionally, BlockFi offers two-factor authentication.

Your money is not held in cash deposit accounts; it is exchanged for stablecoins, so it is not actually held in cash. You will therefore not have access to Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC) Insurance. The FDIC is a government agency that insures deposits and supervises financial institutions for the protection of consumers, with the goal of maintaining public confidence and the stability of the US financial system. The SIPC is a non-profit organization that aims to replenish the securities and liquidity of investors in the event of the bankruptcy of a brokerage firm.

Additional details

Credit card with rewards

BlockFi users can apply for the BlockFi Rewards Visa Signature credit card, which offers 1.5% cash back in crypto. You can also get cashback offers on eligible Bitcoin transactions. Crypto rewards are deposited monthly into your BlockFi account.

The card has a variable APR of 14.99% to 24.99%, and you won’t see any annual or foreign transaction fees. Balance transfers are not permitted and the card is not available to residents of New York State. For those interested in a more limited crypto investment strategy using credit card rewards points, the BlockFi Card could be an attractive product – just keep in mind that its reward rate is similar to other cards that reward you with cash.

Loans

Although we wouldn’t recommend most everyday investors to gamble with crypto loans, they are available on BlockFi. You can get a loan up to 50% of the value of your BTC, ETH or LTC if you have crypto you can use as collateral. Rates start at 4.5% and there are no prepayment penalties, but the loan does carry some risk. If the value of your crypto drops too much, you may need to refund some of it or add more crypto to the account in order to maintain the requirements.

BlockFi Interest Account

Although not currently available to US-based users, the interest-bearing account is designed to allow you to earn interest on the crypto held in the account. BlockFi is in the process of registering a similar product, called BlockFi Yield, with the SEC. If the SEC approves this new product, a version of it would be available for US-based customers.

Who is BlockFi for?

BlockFi is best if you are a beginner to intermediate crypto enthusiast who enjoys managing different aspects of your finances using crypto. This works if you want to quickly and easily buy, sell, and trade limited coins from a custodial wallet, while accessing other services like credit card rewards.

If you are a more advanced user, you may find BlockFi lacking due to the limited number of coins available for trading compared to other exchanges such as Coinbase, eToro, and Gemini which offer many more options. .

How to open an account with BlockFi

To create a BlockFi Account is quite simple. You must provide information about your identity, including your name and address, and provide photo identification. You will also need to connect a funding source to transfer money to the account. Once your account is opened, you can fund and start trading.

BlockFi vs other exchanges

BlockFi Coinbase eToro
Coins Less than 20 cryptocurrencies 150+ cryptocurrencies 50+ cryptocurrencies
Costs No additional trading costs, as spreads are assessed in deviation of 0.50%; trading fees between 1.49% and 3.99% (or flat fees of $0.99 to $2.99) 0.75% to 4.9% spread (varies by crypto)
Wallet storage Hold in BlockFi wallet or transfer to your own wallet Keep the coins on the exchange, in the Coinbase wallet or transfer them to your own wallet Store coins in eToro account, eToro wallet or transfer to your own wallet
Minimum exchange $20 $2 $25

Frequently Asked Questions

Can BlockFi be trusted?

BlockFi gives you a way to buy, sell, and trade cryptocurrencies, but the assets are not FDIC or SIPC protected. BlockFi’s assets are held by trusted custodians, including with Gemini. BlockFi offers certain security measures, such as allowing you to designate specific wallet addresses for withdrawal and two-factor authentication. There was a BlockFi hack using a SIM card exchange, but BlockFi claims no funds were lost and the hacker was unable to access customer assets.

Can you lose money on BlockFi?

As with any investment, if you buy crypto on BlockFi and the price drops, you could lose money. Additionally, since your BlockFi account is not FDIC or SIPC protected, you could potentially lose money if the company goes bankrupt.

Is BlockFi a credit card?

BlockFi is a platform that provides consumers with the ability to buy, sell, and trade cryptocurrencies. It also offers a digital wallet and issues a Visa credit card that earns crypto rewards.

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Associated Credit Union Adds Digital Solutions Business Journal Daily https://innovativewords.com/associated-credit-union-adds-digital-solutions-business-journal-daily/ Sat, 12 Mar 2022 10:02:26 +0000 https://innovativewords.com/associated-credit-union-adds-digital-solutions-business-journal-daily/ YOUNGSTOWN, Ohio — The Associated School Employees Credit Union added digital services while seeing strong returns in asset growth rates last year, says its president and CEO, Michael Kurish. ASECU experienced a 6% asset growth rate in 2021 and added nearly $10 million to its portfolio by the end of the year, according to Kurish. […]]]>

YOUNGSTOWN, Ohio — The Associated School Employees Credit Union added digital services while seeing strong returns in asset growth rates last year, says its president and CEO, Michael Kurish.

ASECU experienced a 6% asset growth rate in 2021 and added nearly $10 million to its portfolio by the end of the year, according to Kurish. It begins 2022 with $172 million in assets and over 14,000 members.

The credit union has expanded its online and mobile presence with a new online banking service and mobile app, he continues. The free mobile app includes features such as mobile check deposit, person-to-person payments, external transfers, and bill payment access.

“ASECU digital solutions allow members to access and manage most of their financial needs remotely at any time,” says Kurish. “Since the start of the pandemic, ASECU has seen more and more members adopt these digital platforms.”

In 2022, ASECU plans to add additional features while maintaining customer privacy and security, he says.

ASECU is one of the few locally owned and operated financial institutions in the Mahoning Valley, he says, and is celebrating 63 years of providing financial services to Mahoning, Trumbull and Columbiana counties.

The credit union has operations in Austintown, Boardman, Lordstown, Newton Falls and on the campus of Youngstown State University. It employs 30 people.

The credit union continues to partner with organizations such as Junior Achievement of Mahoning Valley to sponsor Financial Starting Points – a program designed to teach financial literacy to high school students.

ASECU had the honor of sponsoring Oh Wow! Silly Science Sunday and has participated in other partnerships. Among them were Austintown Township Park, YSU Football, Austintown Community Baseball, and South Range Softball.

Copyright 2022 The Business Journal, Youngstown, Ohio.

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SoFi Strengthens Galileo with Technisys Acquisition – Tearsheet https://innovativewords.com/sofi-strengthens-galileo-with-technisys-acquisition-tearsheet/ Tue, 08 Mar 2022 13:27:41 +0000 https://innovativewords.com/sofi-strengthens-galileo-with-technisys-acquisition-tearsheet/ SoFi, which acquired the Galileo API and payments platform in 2020, has now completed the acquisition of Buenos Aires-headquartered Technisys, a digital banking technology provider that enables traditional banks to move to digital technology and neo-banks to build from scratch. Technosys is present in 16 countries with a workforce of more than 1,000 people. In […]]]>

SoFi, which acquired the Galileo API and payments platform in 2020, has now completed the acquisition of Buenos Aires-headquartered Technisys, a digital banking technology provider that enables traditional banks to move to digital technology and neo-banks to build from scratch.

Technosys is present in 16 countries with a workforce of more than 1,000 people. In the United States, the company counts Rellevate and Tab Bank among its customers, while in LatAm it powers Brazil’s first bank with fully digital checking accounts, Banco Original. In 2021, Forrester recognized Technisys as an established major player among digital engagement banking platforms globally.

The acquisition serves SoFi’s larger vision of becoming “the AWS of fintech.” The vision manifests in its banking division as a service, Galileo, which becomes capable of providing everything a company would need to kick off the launch of a financial product.

“Our members’ response to our innovation in borrowing, saving, spending and investing has motivated us to think bigger, bolder and more expansive in light of consumers’ insatiable appetite for innovation. innovation in financial services,” said Anthony Noto, CEO of SoFi. “With Galileo, we will partner to leverage the strengths of our businesses to further drive financial technology innovation, making these products and services available to current and future partners.”


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Microsoft Dynamics Partner Overview: Banking Experience; Business growth; payroll data; Protection against fraud; Donor management https://innovativewords.com/microsoft-dynamics-partner-overview-banking-experience-business-growth-payroll-data-protection-against-fraud-donor-management/ Fri, 04 Mar 2022 18:02:03 +0000 https://innovativewords.com/microsoft-dynamics-partner-overview-banking-experience-business-growth-payroll-data-protection-against-fraud-donor-management/ In this week’s Microsoft Dynamics partner news roundup: Innovation Credit Union Canada launches new online and mobile banking experience TrueCommerce sees growth in 2021 Loki Systems Announces Historical Payroll Data Migration Tool When Implementing Advanced Payroll for Dynamics 365 Finance Chargebacks911 partners with Microsoft on fraud protection solution for financial institutions Army Historical Foundation selects […]]]>

In this week’s Microsoft Dynamics partner news roundup:

  • Innovation Credit Union Canada launches new online and mobile banking experience
  • TrueCommerce sees growth in 2021
  • Loki Systems Announces Historical Payroll Data Migration Tool When Implementing Advanced Payroll for Dynamics 365 Finance
  • Chargebacks911 partners with Microsoft on fraud protection solution for financial institutions
  • Army Historical Foundation selects StratusLIVE 365 and StratusLIVE Ignite for comprehensive donor management and online donation solution

Innovation Credit Union Canada launches new online and mobile banking experience

Innovation Credit Union (ICU) in Canada has launched a new digital banking experience, powered by VeriPark, a London-based provider of financial services solutions powered by Dynamics 365 CRM.

CIP has adopted VeriPark’s VeriChannel online banking and mobile banking solutions so that its more than 57,000 members can bank using any device, including smartphones, tablets or computers, according to the companies. The new digital platform aims to provide a simpler and more convenient digital banking experience with a more intuitive mobile app and a new website.

“VeriPark is thrilled to have enabled Innovation Credit Union to benefit from a seamless omnichannel digital banking experience,” said Ozkan Erener, CEO of VeriPark. “They are our first customer in North America, and over the next two years we will be implementing all four of VeriPark’s digital banking solutions: VeriChannel, VeriTouch, VeriBranch and VeriLoan.”

TrueCommerce sees growth in 2021

TrueCommerce, a provider of connectivity, integration and omnichannel solutions for trading partners, saw growth in 2021.

In addition to doubling its workforce, growing its customer base by 40%, and expanding its presence across the Americas, Europe, and APAC, the company also saw a 24% increase in total connections to its global network year over year, according to the company. .

Major contributors to this growth include the acquisition of DiCentral and investments in its global platform and product development, which the company is accelerating through 2022, the company noted.

Loki Systems Announces Historical Payroll Data Migration Tool When Implementing Advanced Payroll for Dynamics 365 Finance

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How the war in Ukraine is affecting many financial industries https://innovativewords.com/how-the-war-in-ukraine-is-affecting-many-financial-industries/ Fri, 04 Mar 2022 00:29:15 +0000 https://innovativewords.com/how-the-war-in-ukraine-is-affecting-many-financial-industries/ Powell: Fed to proceed cautiously with rate hike amid Ukraine dispute Federal Reserve Chairman Jerome Powell said Wednesday that the central bank still plans to raise interest rates despite the “very uncertain” economic effects of the war in Ukraine. “Ultimately we will continue, but we will proceed with caution as we learn more about the […]]]>

Powell: Fed to proceed cautiously with rate hike amid Ukraine dispute

Federal Reserve Chairman Jerome Powell said Wednesday that the central bank still plans to raise interest rates despite the “very uncertain” economic effects of the war in Ukraine. “Ultimately we will continue, but we will proceed with caution as we learn more about the implications of the war in Ukraine,” Powell told the House Financial Services Committee. In an unusually clear comment, the senior central bank official added that he backs raising short-term interest rates by 0.25% at the upcoming March 15-16 policymaking meeting. . the central bank to raise interest rates more aggressively through a “double” interest rate hike of 0.50%, which had not happened since 2000. [Yahoo Finance]

Ukraine has raised over $54 million as Bitcoin donations pour in to support war on Russia

Donations of cryptocurrencies like bitcoin and ethereum are pouring into Ukraine as the war with Russia enters its second week. Since the February 24 invasion of Moscow, more than 102,000 crypto-asset donations, totaling $54.7 million, have been made to the Ukrainian government and Come Back Alive, an NGO that supports the military. Accepting donations in crypto is new for the Ukrainian government. Until Saturday, all donations had to go through traditional payment channels, but on February 26, the government decided to get creative. [CNBC]

Visa and Mastercard block Russian financial institutions after sanctions

US payment card companies Visa and Mastercard have blocked several Russian financial institutions from their network, complying with government sanctions imposed following Moscow’s invasion of Ukraine. Visa said it was taking swift action to ensure compliance with applicable sanctions, adding that it would donate $2 million for humanitarian relief. Mastercard also pledged to contribute $2 million. In 2021, around 4% of Mastercard’s net revenue came from activities inside, inside and outside of Russia. Meanwhile, business within, inside and outside Ukraine accounted for 2% of its net income. [Reuters]

75% of Americans have missed credit card payments due to Covid-19

A new survey has found that Covid-19 has added pressure on the personal finances of many households. In fact, more than three-quarters of respondents admitted to making a late credit card payment during the pandemic or missing a payment entirely. If you’re one of the many Americans who aren’t aware of the benefits included on their specific card, you’re not alone. According to our survey, only 29% of cardholders strongly agree that they understand the benefits of their card. Forty percent of cardholders are dissatisfied with interest rates according to this survey, making it the number one source of frustration when it comes to credit cards. [Forbes]

Paceline Introduces Cash-Back Credit Card That Doubles Your Workout Rewards

Paceline, an app that rewards you for your physical activity, announced that its Paceline Visa Signature card is now open for applications as the first cashback credit card that “connects your health and finances through its wellness platform. be unified”. This unique card not only rewards you for spending more, but rather inspires you to seek better health and finances together. And so far, the app has proven popular as over 500,000 Paceline app users have logged over 2 billion workout minutes and redeemed $4 million in rewards.. [CNBC]

Few Americans have a credit card balance of $0 every month

As credit card debt among Americans continues to grow and paying with plastic becomes more common, a new survey of credit card usage from Lantern by SoFi finds that only 13% of respondents have a balance $0 month over month. The most common credit card balance people carry ranges from $1 to $2,500, with 40% of people reporting carrying this amount monthly. A small percentage (7%) reported having a balance of $10,000 or more. SoFi also reported that women were 1.5 times more likely to have a zero balance on their card than men. In fact, 16% of women said they had “no regrets” about their credit card purchases. [Fox Business]

Consumers Prefer Physical Gift Cards, Despite Digital Growth

Physical gift cards are still preferred by just over half (54%) of consumers, according to new research from payment company Fiserv, despite the rise of digital cards. This is similar to data from a 2019 study which also showed that physical gift cards were preferred by both buyers and recipients, although more of those who gave than those who received had a preference for the gift card. tangible map. But just as the Covid-19 pandemic has accelerated payments innovation, it has fueled the rise of digital gift cards: in the past two years, 48% of consumers surveyed said they had purchased more digital gift cards than physical cards. About 37% have stored a gift card on a mobile app, and a third load the gift cards they receive into their mobile wallets. [Retail Dive]

JPMorgan’s secret project aims to push the bank deeper into the growing private enterprise market

JPMorgan Chase is preparing to go all-in on private companies. Over the past year, the bank has quietly hired programmers and created products for a new fintech company that aims to provide a range of services to start-ups and investors around the world. The company is known internally by the code name “Project Bloom” because of its focus on helping private start-up companies grow. CEO Jamie Dimon is investing aggressively to help his bank battle fintech companies, and executives see an opportunity to create a winner in private markets before startups can dominate the space. A key part of Project Bloom is a digital network for JPMorgan clients that will connect start-ups with investors, helping them with fundraising. [CNBC]

Most Small Banks Avoid the Buy Now Pay Later Market

An overwhelming majority of small banks are avoiding the buy now, pay later market, according to American Banker, citing an IntraFi Network survey showing that 81% have little or no interest in it. The publication reported that only 2% responded that they currently offer BNPL or plan to do so. Fourteen percent said they were interested in getting started, but wanted to do so by partnering up. [Business Insider]

94% of Mexican consumers use mobile banking

A recent report found that 94% of Mexican consumers use mobile banking apps or online banking, even though the country has a large unbanked population. The report also shows that alternative mobile payment services – those not tied to traditional bank accounts – are even more popular in Mexico, with 96% of respondents using them. These results indicate that smartphones are likely to continue to play a major role in Latin America’s online banking ecosystem, especially as social commerce (purchases made using apps or social media platforms) also increasing in the region. The report notes that half of all consumers surveyed in the countries of Argentina, Brazil, Colombia and Mexico have made purchases from social commerce, a sign that this channel could also see substantial growth in the coming years. [PYMNTS]

How to Prepare for Buy-Now-Pay-Later Purchases Showing Up on Credit Reports

People using buy-it-now and pay-later services such as Klarna and Afterpay take note: these purchase and payment records will soon appear on credit reports. Equifax said it would begin recording the popular “paid-in-four” installment loans, which have attracted millions of buyers but have largely not been tracked by traditional credit-reporting methods. The move is part of a broader effort by the three major credit bureaus to provide lenders with a broader view of a borrower’s financial obligations. [The Wall Street Journal]

Credit card application rules by issuer

While the number of credit cards has increased with the generosity of welcome bonuses, issuers have also made these cards harder to obtain. There is a litany of rules regarding endorsements, eligibility for welcome bonuses, and how many cards you can have. Navigating all these rules can be confusing and quite stressful. Here’s an overview of all credit card enforcement rules broken down by issuer. [Bankrate]

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US Lawmakers and Fed Chairman Push for Crypto Regulation Following Russian Sanctions https://innovativewords.com/us-lawmakers-and-fed-chairman-push-for-crypto-regulation-following-russian-sanctions/ Wed, 02 Mar 2022 18:21:52 +0000 https://innovativewords.com/us-lawmakers-and-fed-chairman-push-for-crypto-regulation-following-russian-sanctions/ Federal Reserve Chairman Pro Tempore Jerome Powell and some members of the US House of Representatives have called for congressional action on crypto in response to talk of Russia possibly evading sanctions. During a Wednesday House Financial Services Committee hearing on “monetary policy and the state of the economy,” California Rep. Juan Vargas asked Powell […]]]>

Federal Reserve Chairman Pro Tempore Jerome Powell and some members of the US House of Representatives have called for congressional action on crypto in response to talk of Russia possibly evading sanctions.

During a Wednesday House Financial Services Committee hearing on “monetary policy and the state of the economy,” California Rep. Juan Vargas asked Powell if cryptocurrency could be an “out” for Russia seeking financial transactions in the wake of the United States. and the European Union cutting the country off from the SWIFT payment network. The Fed Chairman said the situation with Russia “underscores the need for real congressional action on digital finance, including cryptocurrencies,” adding:

“There is not the type of regulatory framework in place that needs to be there […] What is needed is a framework, specifically ways to prevent these unbacked cryptocurrencies from being used as a vehicle for terrorist financing and just general criminal behavior, tax evasion, etc.

Jerome Powell speaking to the House Financial Services Committee on March 2

Connecticut Representative Jim Himes echoed Powell’s sentiment during the hearing, praising the effectiveness of sanctions against Russia. However, he added that the US not leading the world in cryptocurrency regulatory clarity leaves the door open to foreign nations that may not always have the best intentions.

“It is time, in fact, it is high time for all of us to lead the creation of a regulatory environment in which we, rather than the despots, terrorists and money launderers of the world, benefit from the emergence of cryptocurrency, including a digital central bank currency,” Himes said. “It’s time for all of us to act.”

On the other side of the hill, Senate Banking Committee members Elizabeth Warren, Mark Warner, Sherrod Brown and Jack Reed wrote a letter to Treasury Secretary Janet Yellen on Wednesday expressing concern that Russia and d countries could use crypto to ‘hide cross-border transactions’. for nefarious purposes,” including the weakening of sanctions. Lawmakers cited North Korea using “stolen cryptocurrency” to fund its nuclear weapons program, and Iran promoting Bitcoin (BTC) mining under US sanctions.

“There are growing concerns that Russia is using cryptocurrencies to circumvent new blanket sanctions it faces from the Biden administration and foreign governments in response to its invasion of Ukraine,” said the four senators. “This could include using dark web markets powered by cryptocurrencies to move funds and conduct transactions; the use of crypto wallets and mixing services that allow sanctioned entities to transfer and hide their wealth; rollout of a digital ruble that would allow Russia to conduct foreign trade without converting its currency to dollars.

The lawmakers requested information on what actions the Treasury Department is taking to “enforce the cryptocurrency industry’s compliance with sanctions.” The letter also implied that the department’s Office of Foreign Assets Control, or OFAC, was increasingly reliant on “voluntary self-disclosure by sanctions violators for enforcement,” an approach “ill-suited” to the crypto space.

Related: Crypto Could Circumvent President Biden’s ‘Devastating’ Sanctions on Russian Banks and Elites: Report

OFAC on Tuesday issued a rule warning U.S.-based businesses and individuals not to facilitate crypto transactions sent to certain Russian nationals and banks, in accordance with sanctions ordered by the Biden administration. However, Senators Warren, Warner, Brown and Reed are seeking further clarification from the Treasury Department on OFAC’s tools, coordination with foreign governments and other sanctions enforcement challenges when it comes deals with cryptocurrencies by March 23rd.

“Strict enforcement of sanctions compliance in the cryptocurrency industry is essential, given that digital assets, which allow entities to circumvent the traditional financial system, can increasingly be used as a tool to escape sanctions,” the four senators said.