Credit unions – Blog Campcee Sun, 16 Jan 2022 07:02:22 +0000 en-US hourly 1 Credit unions – Blog Campcee 32 32 Personal finance education must reach all students Sun, 16 Jan 2022 07:02:22 +0000

I have spent over a decade as a teacher, and there is one course that is “personal” for me and my students: personal finance.

During my time at Sandia High School as a teacher for the Distributive Education Clubs of America, I spent my time teaching students the fundamental skills they will need to make important financial decisions for the rest of their lives. This includes skills and concepts such as how to apply for college financial aid, how to save and invest, how to manage their money so they can achieve the goals that are most important to them, and how to become an entrepreneur.

There is no greater reward than having students come back to tell me that the knowledge they learned in my class helped them make a very important life decision or avoid a costly mistake. Unfortunately, not all students receive this opportunity in our state.

I was disheartened to learn that only 11% of New Mexico high school students take a personal finance course before graduation and that our state is one of only five states that has yet to adopt the standards of personal finance K-12. It is imperative that this course be completed by all students before entering the workforce or entering post-secondary institutions.

Many of my current and former students not only express their gratitude for the skills they learned while taking this course, but they also tell me how they have shared their knowledge with their parents and other family members. A student told me that she helped her mother avoid buying a car because she could identify financing terms that were not in her mother’s best interest. Empowering students and families with this knowledge helps our state move forward against intergenerational poverty.

Every year New Mexico waits to make personal finance a graduation requirement, students miss out.

I understand that a concern that has been expressed relates to the location of the course in the curriculum – for example, social studies or math – and whether a new requirement will impose a burden on school districts. While I teach a year-long personal finance course in a very urban district, I understand that many districts in our state, especially rural areas, may not have the resources or an instructor to deliver a personal finance course. independent personal finance.

However, I recently learned that Rep. Moe Maestas, D-Albuquerque, plans to introduce legislation that would provide flexibility to local schools and school districts while ensuring that every student receives this essential instruction, whether offered as a stand-alone personal finance course, substituted for a math credit, or integrated into a personal finance and economics course. This legislation would also allow teachers with honors in math, social studies, business education, and family and consumer science to teach this course, providing even more options for local schools.

With strong personal finance standards under consideration by our public education department, and effective professional development and implementation, we can ensure that every student has the opportunity to learn these skills and be prepared. for wherever their life takes them. As an experienced personal finance teacher, I know of a wide range of free resources available from credit unions and various non-profit organizations that all teachers can use in their classroom.

Given that this year’s legislative session is a short session, during which only the Governor’s budget bills and priorities can be presented, we need the Governor’s support to move Maestas’ legislation forward during the session 2022. I implore Governor Michelle Lujan Grisham to put personal finance education on her agenda for the next legislative session, and I urge our legislature to support all students, teachers, and families by passing legislation ensuring that every high school student will learn about personal finance.

Linda Wilson is a member of the Albuquerque Teachers’ Federation.

5 Areas Credit Unions Need to Rethink in 2022 Fri, 14 Jan 2022 15:00:07 +0000
Source: Shutterstock

The past 22 months have been a whirlwind. The pandemic has brought about various changes in how consumers bank and what their preferences are. If there’s anything credit unions have learned during this time of change, it’s the importance of being nimble and pivoting to better meet the changing needs of members. To keep pace in 2022, institutions need to consider a few key trends.

1. Credit unions should carefully outline their cryptocurrency strategies. Gemini research has shown that more than 20% of people with investable assets are already investing in crypto, and that number is expected to grow. Those who invest usually do so through a cryptocurrency exchange. Moreover, more than 60% of these people would prefer to negotiate with their trusted financial institution. The cryptocurrency space will continue to gain momentum and credit unions need to keep pace. The NCUA has just released guidelines paving the way for federally chartered credit unions to work with third parties on crypto products and services. Institutions must have a thorough understanding of cryptocurrency and decentralized finance use cases, market capitalization, and circulation in order to be able to ensure that quality cryptocurrencies are available to members.

2. Payment preferences change. We continue to see growth and development in payments outside of traditional channels. Although many credit unions have incorporated non-traditional offerings, these payments differ from typical point-of-sale card payments and present their own kind of fraud. The pandemic has also accelerated the adoption of contactless transactions, and issuers have scrambled to provide these types of cards to cardholders. However, supply chain issues have affected credit and debit cards nationwide. The shortage of silicon chips should be on every credit union’s radar, given the importance of keeping members equipped with active payment cards. Issuers who plan for this effectively can minimize the potential impact on their organizations.

3. Automation is back on credit union roadmaps after a two-year hiatus. During the pandemic, many institutions have delayed conversations about automation (robotic process automation, artificial intelligence, loan decision) to free up IT bandwidth for short-term imperatives. Now many institutions are reigniting these conversations. Although large technology projects are usually the focus of large institutions, many smaller credit unions have realized that the time has come for them to take on these projects. In 2022, more credit unions will leverage aspects of conversational AI to support call centers. Additionally, smaller institutions are resisting the urge to customize, and we’re starting to see better APIs available to help with this. Credit unions need to realize they need to do a quick RPA or full onboarding.

4. Credit unions will need to be creative to increase loan growth. Institutions are still drowning in deposits, new household formation has been halved from pre-pandemic numbers, and online account openings are not where they should be. Credit unions need to carefully define member acquisition strategies for 2022, focus more on digital marketing, and improve the online account opening experience. Additionally, we are seeing instances of institutions buying lenders who typically sell loans to keep more earning assets on their balance sheets.

5. Digital versus branch remains a battle. While branch traffic is unlikely to return to pre-pandemic levels, many still yearn for human interaction and still prefer to have in-person interactions. Credit unions should carefully consider their members’ preferences and determine their plan based on their branch footprint.

Over the past 22 months, there has been a lot of change, including the increased use of digital banking, innovations in the payments landscape, and the need to provide exceptional member experiences both in person and digitally. . The financial services industry will continue to grow more mature and crowded, so credit unions that want to maintain their market position must keep pace with these new technologies and services and do what it takes to stay competitive.

Ben Mrva Ben Mrva

Ben Mrva is Executive Vice President of SRM (Strategic Resource Management), an independent consulting firm based in Memphis, Tennessee, serving financial institutions.

Why small business loan approval rates are climbing at a snail’s pace Wed, 12 Jan 2022 19:20:01 +0000

Although the approval percentages of banks and non-bank lenders (institutional lenders, alternative lenders and others) have risen steadily over the past 12 months, the rebound in small business lending is far from robust.

According to the last Biz2Credit Small Business Loan Index™.

Approval percentages also climbed among non-bank lenders. Institutional lenders approved 24.9% of funding requests in December, up one-tenth of a percent from 24.8% in November. Approval rates for alternative lenders rose from 25.8% in November to 26.1% in December. Credit unions approved 20.6% in December, the same percentage as in the previous two months.

Two years ago, bank approval percentages were about double what they are today. Large banks approved 28.2% of loan applications, while smaller banks approved more than half (50.6%) of the loan applications they received in December 2019. The percentages of non-bank lenders in 2019 were even higher: institutional lenders approved nearly two-thirds (66.2%) of applications, alternative lenders granted 56.3%, and credit unions approved 39.7%.

Following the economic shock of the pandemic, approval percentages are increasing more slowly than hoped. Loan approval rates remain well below pre-COVID approval levels of just two years ago.

Total non-farm payroll employment rose by 199,000 in December and the unemployment rate fell to 3.9%, according to the jobs report released by the U.S. Bureau of Labor Statistics on Friday 7 January 2022. Employment continued its upward trend in leisure and hospitality. , in professional and business services, in manufacturing, in construction, and in transportation and warehousing, according to the report. Many of these jobs are created by small businesses.

After the PPP, banking activity in small business lending was slow. In 2022, however, with government lending programs ending and interest rates expected to rise, it will become more lucrative for banks to lend again and hopefully they will. Small business lending activity is expected to pick up this year with higher rates in place.

To his confirmation hearing for his second term before Congress on Tuesday, January 11, Federal Reserve Chairman Jerome Powell said he believed inflation was primarily caused by supply chain issues and indicated that the central bank would focus its attention on the fight against inflation. Raising interest rates is one of the tools in the Fed’s arsenal.

On the eve of the pandemic, the US economy was experiencing its 11th year of expansion, the longest on record. Unemployment was at a 50-year low and the economic benefits were reaching those furthest from the margins. No obvious financial economic imbalance threatens the ongoing expansion, but that rosy picture changed virtually overnight as the virus swept the world. The initial contraction was the fastest and deepest ever recorded. But the pain could have been much worse.

When the pandemic arrived, our immediate challenge was to avoid a full-scale depression, which would require swift and strong political actions from across government. Congress provided by far the quickest and most significant response to any postwar economic downturn. At the Fed, we use the full range of policy tools at our disposal. We acted quickly to restore vital flows of credit to households, communities and businesses and to stabilize the financial system. – Fed Chairman Jerome Powell during his confirmation hearing on Tuesday, January 11, 2022

Powell said these collective political actions, along with the development and availability of vaccines and American resilience, have helped cushion the economic blow and spark a historically strong recovery. The Fed Chairman said the economy is growing at its fastest pace in many years and the labor market is once again strong.

However, challenges remain. The individual shutdown and subsequent reopening of the economy was unprecedented. As the economy has regained strength despite the ongoing pandemic, supply and demand issues are causing inflation.

“We are firmly committed to achieving our statutory goals of maximum employment and price stability,” Powell said. “We will use our tools to support the economy and a strong labor market and to prevent rising inflation from taking hold.”

Financial markets do not like uncertainty. Unfortunately, with COVID-19 and its variants still taking unpredictable turns, uncertainty persists at this time. Normality did not return because the virus did not allow it. Vaccination was expected to alleviate the problem, but it didn’t happen to the extent that most people hoped. The small business economy was not expected to stagnate for so long, and inflation was certainly not expected to reach the levels seen today.

We could not expect the era of extremely low interest rates to continue indefinitely. Rising interest rates will drive up the cost of capital, but will also cause banks to loosen the purse strings for small business owners who want to invest in their business. After all, what’s the point of having low interest rates when institutions haven’t shown much willingness to lend at those quoted rates?

Some businesses are doing well, despite the pandemic: IT, financial services, and anything that doesn’t require a lot of human interfacing. Other industries, including hotels, entertainment venues, restaurants and cruise lines, are still struggling to overcome labor shortages and the negative impacts of COVID on the economy. Until the coronavirus is brought under control, it will take some time for these industries to fully rebound.

Bethpage Federal Credit Union Review – Forbes Advisor Mon, 10 Jan 2022 22:45:45 +0000 Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Bethpage Federal Credit Union is a full-service credit union that offers a variety of financial products and services. The New York-based credit union has more than 30 branches in Long Island and New York.

Unlike many credit unions, membership is not exclusive to specific individuals or groups. Anyone can become a member by opening a $ 5 savings account. Members outside of the New York area can access their funds at more than 30,000 ATMs at no additional cost, as well as through the CO-OP shared branch network of credit unions across the country. Bethpage also offers virtual tour options.

Bethpage is known for its competitive pricing, including its money market account and certificates of deposit (CDs). This review focuses on Bethpage Federal Credit Union personal banking accounts and services. Here’s a look at Bethpage and how competitive its services are.

Annual Percentage Returns (APY) and account details are correct as of January 10, 2022.

Account Basics


Bethpage Federal Credit Union offers three checking accounts, including two options for teens and young adults.

Free Checking is a dividend-generating checking account that offers many of the features that today’s banking customers want. The account earns 0.40% APY for account holders who meet the monthly requirements:

  • Register for online banking with electronic statements
  • Receive a direct deposit
  • Complete 10 debit card transactions at the point of sale

If these conditions are not met, Free Checking earns 0.00% APY. While the website does not list a minimum age for the account holder, Bethpage does offer separate accounts for youth ages 15-17 and young adults ages 18-20 (see below).

The account offers several other great features, including no monthly maintenance fees and no account minimums. The account also comes with a debit card and access to over 30,000 ATMs at no additional cost. Account holders who have set up direct deposit will receive free checks.

Youth Checking is aimed at adolescents aged 15 to 17. The account comes with a debit card, free checks, no monthly fees, and no minimum balance requirement. It is a joint account for parents and teens, allowing parents to monitor as they wish. Parents can also transfer money to the account for chores, weekly allowance, or other chores. The online fee schedule shows Youth Checking earns 0.10% APY.

When a Youth account holder turns 18, the account is converted to a Young Adult Account. Young Adult Checking is basically the same account as Free Checking, but for young adults aged 18-20. And that account earns the same competitive 0.40% APY as free verification to meet the same monthly requirements (e-statements, direct transfers, and debit card transactions).


As mentioned earlier, opening a Bethpage savings account allows you to become a member of a credit union. A balance of $ 5 is required to open and maintain the account, which earns 0.10% APY. The account also comes with an ATM card.

Bethpage Special Purpose Account is a savings account designed to help clients achieve specific savings goals. It is also a great place to keep an emergency fund. Opening a special purpose account requires a minimum deposit of $ 1. When you apply online, you select Savings Account as the type of account to open, and then choose Special Use as the type of savings account.

Bethpage also offers two savings account options for young adults. Youth Savings Custodial (NYUTMA) accounts are joint accounts for children ages 0-17 and their parents or legal guardians.

Savings for young adults are intended for young adults between the ages of 18 and 20. Youth and young adults can open either account with a minimum opening deposit of $ 5.

Youth and Young Adult Savings Accounts earn 2.00% APY on the first $ 1,000 held in the account and 0.35% on account balances over $ 1,000.

CD (share certificates)

Bethpage Certificate Accounts are the equivalent of a CD bank account. Certificates are available in 10 terms ranging from three months to five years, and with APYs of 0.40% to 1.00%. These certificates offer competitive APYs, both over shorter and longer terms.

The 39-month certificate is a supplement certificate. With this gross-up certificate, account holders can increase their dividend rate once during the term of the certificate, as they wish. This allows you to enjoy additional savings if market rates rise.

A minimum deposit of $ 50 is required to open a Bethpage certificate account. You will have to pay an early withdrawal penalty, equal to 90 or 180 days of dividends, depending on the length of the term, if you choose to withdraw the principal from the certificate before it reaches maturity. Certificates renew automatically. You have up to seven days after the due date to make the desired changes or withdrawals.

Dividends are compounded daily for all certificates. For certificates opened online, dividends are credited monthly. Certificates opened in branch have the possibility of being credited monthly or quarterly. Certificates renew automatically when they expire.

Money Market

Money market accounts offer the flexibility of a checking account with the dividend potential of a savings account. Bethpage Money Market Account earns 0.40% APY for balances over $ 500 and requires a minimum opening deposit of $ 500. Similar to a checking account, there are no monthly withdrawal limits with this money market account. The account also allows you to issue up to three checks per month. Money market account balances below $ 500 earn 0.10% APY.

Other accounts and services

In addition to its personal deposit accounts, Bethpage Federal Credit Union also offers the following financial products and services to its members:

  • Credit card
  • Mortgages
  • Home Equity Lines of Credit (HELOC)
  • Auto loans
  • Automatic refinancing
  • Personal loans
  • Retirement planning
  • IRA
  • Assurance
  • Business Accounts and Services

Distinctive signs

A special offer from Bethpage is the ability to virtually meet with credit union staff. While Bethpage staff provide in-person services at its 30 New York-area branches, members can also schedule phone and video appointments. Whatever your need or preferred method of communication, Bethpage offers practical solutions.

Access on the move

Bethpage Credit Union offers modern banking features to its members. Members can manage their accounts online and using the Credit Union’s mobile app. The popular mobile app is available for iOS (scoring 4.8 out of 5 stars) and Android (scoring 4.8 out of 5 stars) and includes features like mobile check deposit, budgeting tools and more. Online bill payment is available through the app and the desktop. The credit union also offers convenient features like a digital wallet and money transfers through Zelle.

Members can access their funds at over 30,000 ATMs at no additional cost across the country. You can also receive in-person assistance at its 30 branches in Long Island and New York. Since Bethpage is also participating in the CO-OP Shared Branch Network, you can get help from credit unions across the country that feature the CU Service Center logo.


  • Competitive APYs on most accounts
  • Full-service banking options
  • Virtual meetings by phone or videoconference
  • No monthly service fees

The inconvenients

  • All branches are in Long Island or New York City
  • Low APY on savings account

How Bethpage Federal Credit Union Stacks Up

People who like the idea of ​​banking through a credit union while maximizing their savings should take a look at Bethpage Federal Credit Union. While all of its branches are in Long Island or New York, most of its services are digitally accessible to those who reside outside of its local sphere.

Regarding the requirements to become a member, Bethpage offers an easy way for any individual to join by opening a savings account with a minimum deposit of $ 5. Credit union is also a solid choice for young adults and families who want to teach their children how to manage their money through a savings or checking account.

Frequently Asked Questions

Is my money safe with Bethpage Federal Credit Union?

Yes. Because it is a federally chartered credit union, Bethpage’s deposits are insured by the National Credit Union Administration (NCUA) up to $ 250,000 per depositor, for each category of account ownership, in default of the credit union.

Can anyone join Bethpage?

Yes. Membership in Bethpage Federal Credit Union is open to anyone who opens a savings account with a minimum deposit of $ 5.

What are the differences between a credit union and a bank?

Banks and credit unions offer similar products and services, but there are several differences between a credit union and a bank. Due to their not-for-profit membership structure, credit unions often charge lower fees, pay higher YPAs, and provide additional support to members, such as financial education programs. Consider your family’s financial situation and needs before deciding between a bank and a credit union.

How do I join Bethpage Federal Credit Union?

You can become a Bethpage member by opening a $ 5 savings account online. Most products and services are available online, and over 30 physical branches are also available in Long Island and New York.

How do I access Bethpage member services?

The Member Service Center can be reached by phone at 800-628-7070 Monday through Friday, 7:30 a.m. to 7 p.m. ET and Saturday 8 a.m. to 2 p.m. ET. An automated telephone service is available outside of opening hours. Members can also send messages through online banking or email. The FAQ section of the website can answer many questions about accounts.

Here’s why Upstart Holdings stock rose 271% last year Sun, 09 Jan 2022 00:13:24 +0000

What happened

Actions of Holdings reached (NASDAQ: UPST) grew by 271.3% in 2021, according to data from S&P Global Market Intelligence. This performance handily demolished the other stellar’s 27% increase S&P 500. The stock peaked in October and was up nearly 800% for the year at that time. But then it cratered about 70%. So while shareholders may have tripled their money in 2021, they are now down significantly from all-time highs for the stock. Hello, volatility.

So what

Upstart Provides Artificial Intelligence (AI) Software To Banks And Credit Unions To Help Get More People Approved For Loans, At Better Consumer Rates And With Risk Of Default lower payment for lenders. And the company is seeing an astonishing adoption rate that leads to disproportionate financial results.

Image source: Getty Images.

Start-up shares rose steadily for most of 2021, but big jumps came after the company released its financial results for the first and second quarters. It generated revenues of $ 121 million and $ 194 million in the first quarter and second quarter, respectively, with annual growth of 90% and 1,018%. However, the growth rate in the second quarter looked better than it would have been otherwise, given that revenues were down in the second quarter of 2020 due to the COVID-19 pandemic.

Upstart action began to decline at the time of its third quarter earnings report. The third quarter results were undeniably good: Revenue increased 250% year-over-year to $ 228 million, and net income tripled to $ 29.1 million. However, forward-looking indications have shown a substantial decline in the growth rate. Management expects fourth quarter revenue of $ 255-265 million, up 200% year-over-year at midpoint of forecast, but up “only” 14% quarter to quarter.

Investors don’t like to see growth slow for stocks like Upstart which have recently seen strong gains. However, to be fair, few stocks maintain annual gains of 800% – annual returns of 15% to 20% are considered sensational. For this reason, it’s no surprise to see the Upstart stock come back to Earth somewhat.

UPST Chart

UPST given by YCharts

Now what

Overview: If Upstart’s AI software is as good as it looks, it should only get better with more data. And more data comes from having more banking partners. In total, Upstart had 31 partners in the third quarter, down from just 10 in the third quarter of 2020. This growing mine of consumer credit data has the potential to improve its software and is quickly becoming a defensible competitive advantage.

In addition, Upstart still has a large avenue for growth to come. She can increase the volume of loans for her personal loan business. But the company also plans to invest in the mortgage launch in 2022. In addition, it has recently taken steps to serve the Spanish-speaking population of the United States, a historically underserved segment of the population that includes tens of millions. of people. And he is also making progress in expanding his car loan business.

Upstart is unlikely to return to 271% in 2022, or any other year to come, for that matter. But there can certainly be a title that beats the market by continuing to do what it does.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

Source link

The State of Open Banking and Open Finance in the United States and Canada – Interview with FDX (Part 1) Fri, 07 Jan 2022 07:40:00 +0000

Tom carpentier, director of public affairs and marketing of the Financial data exchange, shares his latest thoughts on what drives the evolution of Open Banking in the United States and Canada, the challenges and the progress made so far

Can you tell us more about FDX and its members? How does FDX fit into the Open Banking ecosystem?

FDX, which stands for Financial Data Exchange, is a non-profit financial industry standards body. FDX develops and promotes the adoption of a common, interoperable, market-driven, royalty-free API standard for Open Banking and Open Finance data sharing, aptly named FDX API.

A good analogy to understand what FDX does is the Bluetooth standard. Bluetooth has brought together many manufacturers of consumer electronics to create a standard specification so that consumers can use products from different brands interoperably. Likewise, FDX brings together various players in the financial industry around a common API standard so that consumers can share and use their own financial data between financial institutions, fintechs and intermediaries in a secure and transparent manner. regardless of where a consumer trusts or what fintech. the app they might choose to use. And more importantly, the adoption of the FDX API replaces the need for data sharing that relies on shared login credentials. networks, financial sector groups and other stakeholders. Additionally, the FDX API itself is widely implemented in the financial services industry and is currently used by 22 million consumer accounts.

How do FDX standards pave the way for Open Banking in the United States and Canada? Can you describe the API FDX standard for Interoperable Open Banking?

As Open Banking and Open Finance (generally understood as a wider range of sharing financial data beyond banking data) emerge with different systems and regulations across the world, the common thread is an interoperable API standard. that allows consumers to share their financial data transparently. and securely with different financial service providers. And while many jurisdictions have developed an API standard through regulation, the financial industry in the United States and Canada has come together under FDX to develop a market-driven standard that we believe is best suited to respond to market needs and will be better able to predict and adapt quickly to changing market innovations and consumer demand. In addition, market-oriented standards can easily be adapted to suit any regulatory or legal requirements in each jurisdiction.

Regarding the FDX API in particular, we are currently at version 5.0, and this is the foundation for standardizing FDX data sharing with user experience guidelines, taxonomy, registry and the future. FDX certification framework. The FDX API provides consumers with the ability to access over 600 different financial data elements including banking, tax, insurance and investment data, making it one of the most popular Open Finance standards. complete in the world. The FDX API is designed to improve interoperability and performance for the full range of current and future data sharing, and uses core and globally interoperable standards for security, authentication, data transfer , authorization, API architecture and identity.

How would you describe the state of Open Banking in the United States and Canada? Which round are we in? Where is the Open Banking industry heading in the United States and Canada?

I always love a baseball question! I would say we’re in round 2 or 3 in the US and Canada, but let me explain.

First of all, at FDX, we generally define Open Banking and Open Finance as the ability of users to access, share and leverage their own financial data to benefit and improve their financial lives. By this simple definition, I would say that the United States and Canada, while very different, are quite advanced. Consumers in both markets have been using fintech apps and sharing their own financial data for years. We might not have all the rules of the road in place and consumers might not be familiar with the term ‘open banking’, but we wouldn’t have the explosion of fintech companies and technology. innovation if consumer demand for such services was not firmly in place. If I stop my answer there, I guess I could say that we are in the 5th or 6th round of Open Banking.

However, I still think we are in the first third of the game because it is still too early for innovations in financial data sharing. Market players and roles are constantly evolving, and I also think we’ve only scratched the surface of all the ways that consumers will be able to share and use their own financial data in the future.

Finally, I generally describe Open Banking and Open Finance as having two halves – a “what” and a “how”. The “what” is often determined by legal agreements between financial services entities or defined in laws or regulations. The “what” encompasses many decisions and guidance regarding rights to financial data, determinations about what constitutes derived data, and how the different entities and roles in data sharing are regulated.

On the other hand, the “how” of Open Banking or Open Finance involves the technical means and methods which allow all the financial data authorized by the user to be shared and transmitted in complete security between data providers. , data access platforms and data recipients.

With that in mind, FDX is working hard to accomplish the “how”, but much of the “what” remains to be determined in the United States and Canada. We still have a lot of rounds to play!

How would you describe the current financial technology regulatory environment in the United States and Canada?

I have to start by saying that as a technical standards body, FDX is currently prohibited from taking a position on most legislative and regulatory policy issues. FDX strives to educate policymakers and regulators on its standards, and we advocate for market-driven technical standards, but we generally stick to the technical workings of the “How” as I said earlier.

Having said that, my general opinion is that both countries, and frankly most of the world, are stuck trying to adapt old financial laws and regulations to new and innovative financial ventures. These legacy regulatory structures can cover many of the activities of FinTech companies, and bilateral agreements with regulated financial institutions may actually extend the spirit of regulation to FinTech companies, but it just doesn’t work very well.

All to say, I think you’d be hard pressed to find someone in the Open Banking and Open Finance ecosystem who doesn’t think some regulatory clarity and modernization would be beneficial.

What are the challenges to overcome before the United States and Canada can implement Open Banking? When Open Banking is implemented, will it be driven by regulation, market innovation, or both?

As I mentioned earlier, in many ways the United States and Canada both have open banking or strong open finance already in place. I can go to an app store today and start using my own financial data with lots of apps that help me budget, improve my credit score, get me a loan, give me the ability to make payments, show me all my accounts in one. place, compare services and fees, etc. In addition, and thanks to FDX, the two countries have implemented a common API standard developed by the industry that ensures interoperability across the spectrum of financial institutions, fintechs and intermediaries.

On the other hand, neither country has yet a fully defined regulatory structure called an “open bank”. I think that will change soon in both countries, as I expect to see rules proposed by the CFPB in the US and an implementation of the Canadian Open Banking Advisory Committee final report in the next 12 months. month. The remaining challenge will be to come up with rules and regulations that properly balance the roles of government and the market so that the rules are clear and also allow the market, innovation and competition to continue to thrive.

At the end of the day, when we look back in about 5 years, I think the United States and Canada will end up with hybrid systems of open financing. I also believe that countries that started with primarily regulatory open banking approaches will also end up with hybrid frameworks in the future.

What challenges does Open Banking present to banks in these markets?

I often get a form of this question and it usually seeks to define a “Banks vs. FinTech” type narrative. However, I truly believe that Open Banking and Open Finance are a high tide that lifts all boats. Of course, banks and financial institutions are the old providers of financial services in Canada and the United States. It can therefore be difficult to adapt to a competitive landscape that increasingly includes a diversity of providers and where consumers demand a choice of financial services. However, banks have built up decades, if not centuries, of consumer confidence that they can tap into open banking. Additionally, there is no rule that says a fintech app must be provided by a third party. In this, I think that we will see more and more banks providing fintech-type services to clients and / or providing an app-store type interface that is easy for their clients to use with their data.

Read the second part of the interview for key insights on data sharing, consumer education and the agenda for the future of Open Banking in the United States and Canada.

About Tom Carpenter

Tom is the Director of Public Affairs and Marketing for the Financial Data Exchange (FDX) where he leads organizational communications, thought leadership and brand development with financial industry stakeholders, policymakers and the media. Prior to FDX, Carpenter spent nearly two decades developing and advocating for complex public policy in Washington – starting as a legislative assistant to Congress, then as a federal lobbyist and senior government affairs official, managing legislative advocacy campaigns and political brands for Fortune 500 clients and professional associations. to startups.

About FDX

Financial data exchange, LLC is a non-profit organization dedicated to unifying the fi nancial industry around a common, interoperable, royalty-free standard for secure and convenient access to consumers and businesses to financial data. FDX empowers users through its commitment to the development, growth and industry-wide adoption of its API, in accordance with the principles of control, access, transparency, traceability and security. Membership is open to financial institutions, financial technology companies, and other industry stakeholders.

Source link

Efforts resume to cap interest rates on small loans Wed, 05 Jan 2022 05:05:00 +0000
New Mexico lawmakers could reignite debate in the next 30-day legislative session on whether to change the interest rate cap on loans issued by storefront lenders, like this securities lending institution. in northeast Albuquerque. The annual interest rate cap for small loans was set at 175% in 2017 (Robert Browman / Albuquerque Journal)

Copyright © 2022 Albuquerque Journal

SANTA FE – Attempts to lower New Mexico’s annual interest rate cap on small loans – from 175% to 36% – failed in last year’s legislative session, but lenders plan to try again in the 30-day session starting this month.

Gov. Michelle Lujan Grisham is expected to add the issue to the session’s agenda for consideration, and a spokeswoman for the governor said there have been talks to try to reach a compromise before the start date of January 18. .

However, several lawmakers said on Tuesday that no such deal had been reached.

“I’m counting now to see if I have the votes,” said Rep. Susan Herrera, D-Embudo. “It’s still in the air.”

One area of ​​compromise could be lowering the cap on the maximum annual percentage rate for small loans, but by an amount lower than some advocates prefer. Proponents say such action is necessary to keep New Mexicans out of “debt traps.”

Senator Bill Soules, D-Las Cruces, who sponsored last year’s bill that died after the House and Senate passed different versions of the legislation, said he was open to possible gradual implementation of a lower interest rate cap.

But he said he was keen to avoid a repeat of last year’s legislative session, in which the bill was amended in the House – with a higher rate cap on loans of 1,100. $ or less – amid fears the proposal may make it impossible for some New Mexicans who need quick access to small amounts of money to get loans.

“I’m not interested in starting on the 36% Senate side and then having it go to the House and change it into something I don’t think is reasonable,” Soules told the Journal.

New Mexico has had a checkered history of regulating the lending industry.

A previous 36% cap on loan interest rates was abolished by the legislature in the 1980s amid high inflation, according to a study by Santa Fe-based Think New Mexico, which called for the reinstatement of the lower rate cap.

After years of debate in the Roundhouse, lawmakers passed a 2017 bill that set the current cap on the small loan interest rate at 175% and outlawed payday loans with terms of less than 120 days.

But critics have insisted that the 175% cap is too high for low-income New Mexicans, while noting that the US military has put in place a 36% annual percentage rate limit for those with low incomes. loans obtained by servicemen on active duty.

Lujan Grisham spokeswoman Nora Meyers Sackett said the Democratic governor supported measures taken to protect New Mexicans from “predatory loans” and said the governor’s office had participated in conversations aimed at finding a consensus. Lieutenant Governor Howie Morales played a leading role in these discussions.

But she also said that if no agreement is reached, the issue may not be added to the legislative session’s agenda.

“We hope to be able to include such legislation within 30 days (session), but that will depend in part on the ability of the parties involved to identify a compromise or solution that will allow the bill to move forward and through. the legislature – and that would also ensure that disagreements on this do not affect the limited time we have, which will be needed for other key elements, ”Sackett said.

Critics of the push to lower the state’s current interest rate cap on small loans have argued that such a policy change could bankrupt many businesses and push borrowers to use internet lenders. , many of which are based in other countries and cannot be regulated.

During last year’s legislative session, a credit industry lobbyist said the industry employs about 1,300 people across New Mexico.

But Kristina Fisher, associate director of Think New Mexico, said many operating loan companies are based out of state, which means loan repayments do not bolster the state’s economy.

“We are really taking money out of the state,” she said in a meeting Tuesday with the Journal’s editors and reporters.

She and other supporters also said New Mexico credit unions stand ready to provide loans at lower interest rates to residents of the state who need cash quickly.

According to the New Mexico Center on Law and Poverty, about 60 percent of New Mexico’s small loan stores are within 10 miles of tribal lands, where many residents live below the federal poverty line.

Source link

City Council to Evaluate the Rezoning of the North Side Property Planned for Development | Government and politics Mon, 03 Jan 2022 03:40:00 +0000

SIOUX CITY – A local businessman asks Sioux City Council to rezone the property just west of North High School so they can develop it.

According to city documents, Dan Hiserote of Aftershock Ventures, LLC does not have final plans for 1171 Outer Drive North, but wants the property to be fully rezoned Neighborhood Conservation 5, allowing for multi-family uses and light commercial.

City council is expected to vote on the rezoning request at its Monday meeting.

The property is currently divided into two zones, the southern part being zoned Neighborhood Conservation 5, where Building Blocks Preschool and Childcare is located. The central and northern parts of the property are zoned Neighborhood Conservation 2. Hiserote plans to develop the central part of the property, between the Building Blocks and the town’s water tower, according to the documents.

Apartments, townhouses, guesthouses, general offices, as well as banks and credit unions are prohibited under Ward 2 Conservation, but limited or conditional under Ward 5 Conservation .

City staff recommend that Council approve the application, as the 2005 master plan indicates that this area is a “mixed-use neighborhood,” which is defined as areas consisting of a small shopping / shopping center. retail sale offering locally targeted services, including a residential component.

Ten notices were sent to landowners in the area. A resident and business owner responded, expressing concerns about traffic and maintaining the integrity of the neighborhood and grounds.

The property that Hiserote plans to develop is located near the intersection of Outer Drive with Cheyenne Boulevard.

“This intersection is a burning mess, which we all already know,” wrote the owner opposed to the rezoning request. “Adding even more traffic to this would be a fallacious mistake for many reasons, again which we all know.”

Source link

Reporting proposal violates rights | News, Sports, Jobs Sat, 01 Jan 2022 06:05:00 +0000

For the publisher:

Are you aware of the proposed infringement of another of our rights and freedoms as Americans?

The Fourth Amendment is found in the Bill of Rights: the right of people to be safe in their persons, homes, papers and belongings from unreasonable searches and seizures must not be violated and no warrant must be issued. , but on a probable cause, supported by oath or solemn affirmation, and describing in particular the place to be searched, and the persons or things to be searched.

The current administration – President Joe Biden and Secretary of the Treasury Janet Yellen, along with their advisers, are suggesting that our banks and credit unions submit any purchase of $ 600 to the Internal Revenue Service. or more.

If you buy a sofa or a cow, our government will know. Are you sure you want this reported to the IRS? Their counter-argument to dissidents is that banks already report to the IRS any interest earned of $ 10 or more on our accounts. While this is true, how does reporting our expenses of $ 600 or more help catch tax cheats? If they suspect cheaters, and there is a plethora of them, get a legal search warrant and prosecute them specifically, not after everyone else.

It could lead to a huge invasion of privacy unlike any this country has ever seen. Millions of law-abiding Americans could suddenly have their bank accounts opened to federal investigators for nothing more than buying a refrigerator. It is simply unacceptable. To make matters worse, the proposal says saving for college could put an American family on the IRS’s radar, and the costs of that surveillance and reporting will most likely be passed on to the public.

The administration will do it anyway, because they are not listening to any reasoning that does not conform 100% to what they want to do. They are totalitarian and determined to control all aspects of your life. This policy will be a good start. Call it socialism or communism or whatever term you want to use, it’s suggested.

Everyone should call their Senators and House Members and tell them that you do not want your transactions over $ 600 turned over to the government in accordance with our Fourth Amendment rights and freedoms.

How much do you bet that members of the Senate and the House will be exempt from this policy if it is enacted?

Paula krensavage


The latest news of the day and more in your inbox

Source link

MeridianLink Appoints Yael Zheng to Its Board of Directors | Business Thu, 30 Dec 2021 21:06:43 +0000

COSTA MESA, Calif .– (BUSINESS WIRE) – December 30, 2021–

MeridianLink, Inc. (NYSE: MLNK), a leading provider of modern software platforms for financial institutions and consumer news agencies, today announced the appointment of senior board member Yael Zheng and responsible for software marketing, within its board of directors.

An industry veteran, Zheng brings more than 20 years of software leadership to this role. Her experience as Marketing Director for multiple companies includes growing multiple private companies from the initial stage to the initial public offering, and then scaling operations after the IPO. Most recently as Marketing Director of, Zheng’s responsibilities included leading all marketing functions to help establish the company as a category leader in accounts payable automation software for SMEs. Before joining, Zheng has been responsible for marketing at VMware and Medallia during periods of significant growth and change.

“As MeridianLink closes another record year as a trusted market leader, it is only fitting to welcome another trusted software leader to our board of directors,” said Paul Zuber, Chairman of the Board of Directors of MeridianLink. “Yael’s proven track record of scaling organizations, his operational excellence, especially in marketing, and his strategic leadership will strengthen the capacities of our board of directors. We look forward to working with her.

Zheng is currently an independent director on the Poly Board of Directors and a member of the Nomination and Corporate Governance Committee. She is also a director of the board of directors of Splashtop, a private SaaS company providing cloud-based remote access and support software and services to 30 million users worldwide. Previously, she was an independent director on the board of directors of Stella Connect, acquired by Medallia in September 2020. Zheng is NACD (National Association of Corporate Directors) Directorship Certified ™ and holds a bachelor’s degree in materials science and engineering from the Massachusetts Institute of Technology and an MBA from UC Berkeley Haas School of Business.

About MeridianLink

MeridianLink® (NYSE: MLNK) is a leading provider of cloud-based software solutions for financial institutions, including banks, credit unions, mortgage lenders, specialist loan providers, and news agencies. on consumers. Based in Costa Mesa, Calif., MeridianLink serves more than 1,900 clients, including the majority of financial institutions on the Forbes 2021 lists of America’s best credit unions and banks. Further information can be found at

View source version on

CONTACT: Becky Frost

(714) 784-5839



SOURCE: MeridianLink, Inc.

Copyright Business Wire 2021.

PUB: 12/30/2021 4:05 PM / DISC: 12/30/2021 4:06 PM

Copyright Business Wire 2021.

Source link