Credit unions – Blog Campcee http://blogcampcee.com/ Tue, 21 Jun 2022 05:36:23 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://blogcampcee.com/wp-content/uploads/2021/05/cropped-icon-32x32.png Credit unions – Blog Campcee http://blogcampcee.com/ 32 32 The Cullen Commission Report: What You Need to Know https://blogcampcee.com/the-cullen-commission-report-what-you-need-to-know/ Tue, 21 Jun 2022 05:36:23 +0000 https://blogcampcee.com/the-cullen-commission-report-what-you-need-to-know/

On June 15, 2022, the Honorable Austin Cullen released the long-awaited Cullen Commission Report (Report). While there are many interesting observations and comments to read, the purpose of this newsletter is to review the recommendations made and the effect they might have on organizations operating in British Columbia (BC). B.) if implemented.

As a starting point, the report concludes that Canada’s federal anti-money laundering regime is not effective. Accordingly, the report recommends the creation of a provincial Money Laundering Intelligence and Investigation Unit and the appointment of an Independent Anti-Money Laundering (AML) Commissioner in British Columbia who provide strategic oversight of the province’s response to money laundering.

Here are some other recommendations that will affect those operating a business in British Columbia:

MONEY SERVICE BUSINESSES (MSBS)

The report recommends that British Columbia regulate MSBs at the provincial level to add “thorough scrutiny” to regulation by the Financial Transactions and Reports Analysis Center of Canada (FINTRAC) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (RPCFAT). In this regard, the report recommends that MBS be regulated by the BC Financial Services Authority (BC FSA) and that MSBs be audited more frequently, noting that FINTRAC generally does not review an MSB until it is in business for at least two years. years.

It is recommended that British Columbia’s regulatory regime for MSBs should, at a minimum:

  • Define an ESM in a manner consistent with the PCMLTFA definition (except for virtual currency brokers);

  • Have the ability to identify unregistered MSBs and sanction them;

  • Have a registration process in which the suitability of applicants is assessed in a broader way than is currently done under the PCMLTFA (with the ability to refuse registration for reasons other than a criminal conviction and to require the disclosure of business relationships, similar to the regime in Quebec);

  • A compliance process that applies in the early years of an MSB’s existence (before the two-year mark as is the case with FINTRAC);

  • Sharing information with FINTRAC and others; and

  • Administrative and financial penalties.

This will create another level of regulation for MSBs in Canada which, combined with the obligations to come under the new Retail Payment Business Actwill require more time and resources.

The report, upon review, did not recommend that ATM operators be subject to the MSB regime.

MORTGAGE BROKERS

The report recognizes that mortgage brokers gain important insights into their clients’ financial status and gain direct insight into client behaviors that may be suspicious. On this basis, the report recommends that the Minister of Finance of British Columbia urge the federal Minister of Finance to subject mortgage brokers to the PCMLTFA.

In addition, the report recommends that private mortgage lenders be subject to a registration regime in British Columbia, as well as regulatory oversight and enforcement. In this regard, it should be noted that in the recent federal budget, the government indicated that the PCMLTFA would be amended to include unregulated mortgage lenders.

As such, it is clear that there will be more AML regulation of the mortgage industry and real estate in general in the future.

CREDIT COOPERATIVES

The report reviews some of the anti-money laundering expectations set out in the Office of the Superintendent of Financial Institutions (OSFI) Guideline B-8 that applies to federally regulated financial institutions (which has been repealed). The report recommends that the BC FSA develop its own anti-money laundering guidelines applicable to credit unions operating in British Columbia and that, in general, the BC FSA be given a clear and enduring fight against money laundering and sufficient resources to implement it. As such, an additional layer on AML regulation will now be placed on credit unions operating in British Columbia.

LUXURY PRODUCTS

The report defines “luxury goods” very broadly to include high-value goods and looked at luxury goods in context not only as a way to launder money, but also to use the proceeds of the crime to purchase luxury goods for use or enjoyment. Due to the difficulty of defining and regulating the luxury goods market, the report recommends that the province implement a universal record-keeping and reporting requirement for cash transactions of C$10,000 or more in a alone or a series of related transactions. In these circumstances, it is recommended that businesses accepting cash of C$10,000 or more be required to, among other things:

  • Verify the customer’s identity and collect their name, address and date of birth;

  • Find out about the source of funds used for the purchase;

  • Determine whether the purchase is being made on behalf of a third party and, if so, collect the third party’s information; and

  • Report the transaction to the province.

This would be overseen by the LBC Commissioner.

It remains to be seen whether British Columbia will implement some or all of the report’s recommendations. If implemented, the province will need even more resources dedicated to compliance, including in previously unregulated areas.

Blakes periodically provides interested persons with materials about our services and changes in the law. This article is provided for informational purposes only and does not constitute legal advice or an opinion on any matter. Blakes will be happy to provide additional details or guidance on specific situations if desired. For permission to reprint articles, please contact Blakes Marketing at 416-863-4345 and [email protected] © 2019 Blake, Cassels & Graydon LLP.

Blakes periodically offers documents on trends and new facts in the legal field to those who want them. This article is for informational purposes only and does not constitute legal advice or an opinion on any subject. We will be happy to provide you with additional details or advice on specific situations if you wish. For permission to reproduce articles, please contact Blakes Marketing and Communications at 514-982-4026 or by email at [email protected]. © 2019 Blake, Cassels & Graydon LLP

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Virginia Credit Union – a financial institution with personality https://blogcampcee.com/virginia-credit-union-a-financial-institution-with-personality/ Sun, 19 Jun 2022 15:02:00 +0000 https://blogcampcee.com/virginia-credit-union-a-financial-institution-with-personality/

You will receive friendly and welcoming service from Michael and the Virginia Credit Union staff.

Virginia Credit Union has served the financial needs of the local community for over 30 years and over that time it has gone from strength to strength. While many credit unions across the country have merged into larger entities, VCU has remained independent and self-sustaining and it is this structure that its board believes is the main reason for its continued positive performance.

2021 has been another very successful year for VCU.

“We increased our membership by 296 new members and provided €4.7 million in new loans to the local community. That’s an 18% increase over the previous year,” according to CEO Micheal McDermott.

VCU’s core business is providing a safe and secure place for its members to place their hard-earned savings and providing a wide range of loan products to enable members to borrow for a variety of reasons. However, it’s not that simple as VCU strives to be the best in the market at what it does.

“When you enter VCU or call on the phone, you will always be greeted in a polite, welcoming, warm and professional manner by a member of staff. We strive to ensure that the member experience is one that will be remembered and spoken about positively in the local community and beyond. It is this member experience that translates into new business opportunities for VCU. We believe in going the extra mile for all of our members and whether you’re a kid depositing your small weekly savings, a borrower in need of a big loan, or a borrower in need of a small loan, you’ll be treated to the same way. exceptional manner by all of our staff,” enthused Micheal.

Extensive loan book

VCU currently has over €28 million in assets and the loan portfolio continues to grow year on year, as evidenced by its 18% increase last year.

“We have a wide range of innovative loan products to meet the needs of our members and we are continually striving to introduce new loan products to our range. We have recently launched our VCU – First Loan to our range which offers a competitive/reduced interest rate for new members wishing to borrow or for existing members wishing to borrow for the first time (terms and conditions apply) . Please contact us for more information on our exciting new product and all of our other innovative loan products,” said Micheal.

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Credit Unions from Six States Visit Capitol Hill for Spring Meetings | 2022-06-16 https://blogcampcee.com/credit-unions-from-six-states-visit-capitol-hill-for-spring-meetings-2022-06-16/ Thu, 16 Jun 2022 06:11:00 +0000 https://blogcampcee.com/credit-unions-from-six-states-visit-capitol-hill-for-spring-meetings-2022-06-16/

Advocates from the six states represented by the Mountain West Credit Union Association and the soon-to-merge Northwest Credit Union Association traveled to Washington, DC, for visits to Capitol Hill June 8-9.

Following meetings at 27 congressional offices, the staff of Rep. Joe Neguse, D-Colo., told the Association that he had signed on to co-sponsor the Credit Union Board Modernization Act (HR 6889).

Senator Kyrsten Sinema, D-Arizona. introduced a Senate version of the legislation days earlier. The bills would reduce the number of council meetings required each year.

Advocates called on representatives to support this legislation and shared priorities such as expanding financial access for underserved communities, extending loan terms, data privacy, and more.

NCUA President Todd Harper also hosted visitors for a meeting the day after he was confirmed by the Senate for a full term on the board. Attendees also met with Vice President Kyle Hauptman, while Board Member Rodney Hood came to Colorado for a meeting with the Association team and credit union advocates on June 13.

Priorities discussed during the three meetings included fintech opportunities for credit unions, modernization of the Central Liquidity Facility and other topics.

Additional tour information can be found here.

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FinTech Nuula launches app in Canada in partnership with Caary and OneVest https://blogcampcee.com/fintech-nuula-launches-app-in-canada-in-partnership-with-caary-and-onevest/ Tue, 14 Jun 2022 15:15:07 +0000 https://blogcampcee.com/fintech-nuula-launches-app-in-canada-in-partnership-with-caary-and-onevest/ Nuula is building an ecosystem of partners to serve local small businesses around the world.

For the FinTech startup Nuula, it’s all about partners. Nuula has partnered with two Canadian startups, Caary and OneVest, to launch what it calls its super app in Canada.

While the financial services app for small businesses was previously available in the United States (US), the Canadian version is bolstered by integrations from both Nuula partners.

Nuula says its new app helps small business owners track their cash flow in real time, helps them monitor financial and business metrics, and allows them to track customer sentiment, including online ratings and reviews. .

Caary’s corporate credit card is offered in the Nuula app for Canadian customers, while OneVest provides personalized investment wallets in the app.

Nuula first launched its app in the US in 2021 after rebranding from BFS Capital, which operated for 20 years offering loans to small businesses. Based in the United States, BFS Capital began its transformation into a company with a real-time data and analytics application in 2019, when it opened an engineering center in Toronto.

At the time of the US launch, Nuula CEO Mark Ruddock spoke about creating a broader partner ecosystem through which Nuula hopes to offer a number of financial services to its customers. It now seems to be coming to fruition.

In an interview with BetaKit, Ruddock said he sees the rise of integrated FinTech partnerships coming to the fore. “An example of this is the next generation of exciting new FinTechs that are being built and designed to be integrated into a range of third-party platforms,” ​​Ruddock said.

In Nuula’s case, that means serving the needs of small businesses around the world by partnering with FinTechs locally, market by market. “Most financial services require local skills and an understanding of each jurisdiction’s rules and regulations,” Ruddock said. “That’s what makes partnerships so appealing – it’s easier to partner with the best local FinTechs than to create something from scratch that meets all needs in all markets.”

Ruddock noted that each partnership is slightly different. Some use a revenue-sharing model, while others get paid with onboarding new customers. Still others are paid through a lifetime revenue share or per transaction. “We work with a lot of different partners and give small businesses free access to the Nuula app, so we’re very flexible when it comes to getting the right model in place,” he said.

He also pointed out that Nuula partners have access to what he said is a rapidly growing pool of small business customers, as well as information about the health of each business.

“As an app that tracks financial performance, we’re able to pre-qualify clients and find signals of financial health,” Ruddock said. “We are also able to track the performance of these companies over time and provide ongoing health signals to our partners. This is information that many FinTechs would not be able to collect on their own. »

RELATED: OneVest Gets $5 Million to Help Companies Like Neo Financial Launch Wealth Management Products

While FinTech partnerships aren’t a new trend – Wealthsimple and Borrowell joined forces in 2016 – other such partnerships are popping up lately. More recently, such partnerships have included FinTech startup Brim Financial which partnered with Canadian Western Bank (CWB) to give CWB customers access to Brim’s ‘platform as a service’ technology; and FinTech startup Mogo announcing a three-year lending partnership with alternative finance provider goeasy.

In fact, one of Nuula’s partners, OneVest, is no slouch when it comes to the partnerships themselves. OneVest partnered with Neo in April to create Neo Invest, a digital investment platform run by professional fund managers.

OneVest’s model is that it offers a turnkey ‘wealth as a service’ platform to a range of different customers, including consumer FinTech companies, credit unions, traditional banks and corporations. wealth management. It partners with companies and works as a back-end for various FinTech services to help companies launch these products easier and faster.

Nuula’s other partner, Caary, was founded in 2020 and offers a corporate card and payment platform to Canadian small and medium businesses. The startup says it has developed a model for assessing and offering credit to SMEs based on cash flow and assets rather than credit history, which it calls a “novel approach”. Caary secured $4.1 million in funding last year.

Nuula currently has approximately 60 employees, most of whom are based in Canada. While Ruddock is pleased with the Canadian launch, he noted the lag when it comes to open banking as a missing piece to operating in Canada. He said countries that have built strong open banking platforms, alongside strong regulatory infrastructure, have seen the rise of a vibrant FinTech and banking ecosystem.

“Unfortunately, Canada lags behind the rest of the world in this area,” Ruddock noted. “Countries where open banking is strong are reaping the rewards, enabling a new generation of FinTechs to thrive. The result is more financial inclusion, more access to capital, and more innovation.

Canada only announced its open banking leader, PwC Canada’s director of digital banking, Abraham Tachjian, in March. The appointment comes more than three years after the federal government launched its Open Banking Advisory Committee, and nearly a year to the day since their report recommended a leader for the design of the “first phase from [open banking] system.” Canada’s long and drawn-out journey to open banking has often been criticized by Canadian fintech companies for what they see as its glacial pace.

For Nuula’s part, Ruddock said that in the coming weeks the startup will announce more partnerships that “look at the needs” of small businesses and entrepreneurs. “For example, you’ll soon hear us announce partnerships that flesh out the broader needs of small businesses, whether it’s term life insurance or cyber protection,” he said.

Over the next few quarters, Nuula plans to launch in other countries around the world. “The UK is next on our roadmap,” Ruddock said.

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Pandemic spurs digital transformation for Arkansas bankers https://blogcampcee.com/pandemic-spurs-digital-transformation-for-arkansas-bankers/ Sun, 12 Jun 2022 09:37:02 +0000 https://blogcampcee.com/pandemic-spurs-digital-transformation-for-arkansas-bankers/

Customers of Simmons First National Corp. who attempt to open a new checking account through the bank’s website encounter an unusual experience: they are encouraged to use their mobile phone instead of their desktop computer.

Using the bank’s mobile phone app, opening an account takes less than five minutes and only requires three basic pieces of information: email address and phone and social security numbers. Customers can complete the process in the time it takes to get dressed, find the car keys, and leave the house.

“We believe the best experience we can give you is through a mobile device,” said Alex Carriles, chief digital officer at Simmons, one of the state’s largest banks. “It allows you to do a lot of other things that you couldn’t do on your desktop.” Simmons’ approach highlights the digital transformation of the banking industry that has accelerated during the pandemic, with customers shifting from traditional in-person banking to the rapid convenience of online and mobile services.

“Many banks have said they’ve changed the way they serve their customers forever and they’re not coming back,” said Charles Potts, chief innovation officer at Independent Community Bankers of America, a national trade group. which represents approximately 5,000 small businesses. and medium-sized banks across the country.

The two-year pandemic has been a catalyst for the digital explosion, fueling shifts in customer behavior. Covid-forced branch closures prompted many customers to try online and mobile banking for the first time.

“A lot of people weren’t ready to go digital, with some of them stuck in their ways,” said Matt Olney, banking industry analyst at Stephens Inc. of Little Rock. “With covid, branches closed and many consumers didn’t want to leave their homes, it kind of forced them to figure out how to bank online.” Consumer acceptance has grown and accelerated the evolution of digital banking.

“Throughout this process, the bankers took the strategic plan that they came up with in 2019 … and basically threw it in the trash and said we had to do in a few months what we had planned to do in years,” Potts added. “To a large extent, it was out of necessity – customers demanded it. Digital evolution has accelerated at an unprecedented rate in my 40 years of doing this.

MOBILE FIRST

Banks in Arkansas have taken the plunge.

Lenders large and small are increasingly relying on mobile banking to sell their services and attract customers, with many using what Potts calls a “mobile-first strategy.” Overall, regardless of asset size, financial institutions in Arkansas report that digital transactions have increased significantly over the past two years.

Chris Gosnell, managing director of Farmers Bank & Trust, a $2.5 billion asset bank in Magnolia, said the pandemic was a “slap in the face” that prompted the banking industry to accelerate the rollout of mobile services and digital. “It moved us forward about five years,” Gosnell said. “We planned to tackle it and all of a sudden you have to do it now.” Arkansas State Bank Commissioner Susannah Marshall notes bankers were working to improve their digital experience before the pandemic, but also cites covid-forced branch closures as a key factor in accelerating these initiatives.

“Many banks were already starting to transition to a digital banking presence before the pandemic and we’ve certainly seen customers more willing to adopt and utilize digital service offerings during the pandemic, and this has continued ever since,” Marshall said. “Our banks have done an excellent job of meeting customer expectations today.” Today, banks are rushing to implement more robust mobile banking options, including a full range of products and services ranging from opening new accounts, applying for loans, payment options real time and record for trust and investment or cryptocurrency. support — services that previously required customers to visit a local branch for assistance.

Global research firm Kearney reports that more than 40% of consumers have increased their use of mobile banking apps or websites during the pandemic, and 85% said they will continue to rely on channels digital in the future. Similarly, the American Bankers Association found that digital account opening activity more than doubled from pre-pandemic levels.

Arkansas lenders are also reporting rapid numerical growth.

Simmons Bank says digital transactions grew by 40% from March 2021 to the end of March this year, with around 71% of customer transactions taking place through digital channels. Similarly, mobile deposit dollars grew 31% at Simmons over the same period.

Arvest Bank of Benton-ville, the state’s largest private institution with assets of $26.6 billion, says customers who bank exclusively using digital channels have increased from 17% to 29% from December 2019 to the end of May this year. Agency-only usage fell from 27% to 18% over the same period. The overall penetration of digital services in all consumer households increased from 63% to 69%.

First Bank & Trust of Jacksonville, with just under $1 billion in assets, said digital transactions more than doubled from 2020-21. FB&T installed 18 interactive ATMs, allowing customers to interact with cashiers via two-way video, in all of its locations just before the pandemic hit to expand its digital efforts. “Obviously, our customers were benefiting from the investment we had made in newer technology,” said Larry Wilson, president and CEO of the bank.

Digital transactions at Stone Bank, a $600 million-plus asset bank chartered in Stone County, have increased 15% over the past two years, according to chief executive Marnie Oldner.

At Farmers Bank of Magnolia, the number of mobile banking customers has skyrocketed over the past five years, soaring 263%, Gosnell said. Online account openings jumped 34% over the same period.

Similar forces are at play for credit unions, which are also seeing an increase in digital usage. Online transactions grew 15% a year before covid and are now up to 45% at the Arkansas Federal Credit Union (AFCU), the largest in the state with $1.9 billion in assets.

These increases have led to increased investment in digital products and services. “We’ve added a lot of features,” said Nicole Matsoukas, AFCU’s chief information officer, who said the credit union increased its investment in digital technology by 45% over last year. .

With friendlier consumer behavior comes higher expectations – customers are demanding digital services and an experience on par with those offered by the world’s top tech companies: Amazon, Apple and Google, bankers and finance officials say ‘industry.

“The experience becomes really critical,” Carriles said. “The reality is that you have a chance of succeeding. If the experience isn’t great, you’re going to lose that customer.

DIGITAL TRANSFORMATION

These results are prompting financial institutions to invest more in digital improvements, drawing funds from branch network growth. “In terms of the additional dollars banks are going to spend, it’s going 100% toward digital transformation, shifting spending from branches to digital transformation,” Stephens’ Olney said.

State banks are investing more to meet the demands of digital customers.

In 2018, Simmons committed $100 million to technology advancements – including mobile banking and infrastructure improvements – to position the bank for future growth and to keep pace with the changing world. digital landscape.

Farmers Bank has increased its annual investment in digital banking technology by 15%.

The warm reception of digital by consumers is putting pressure on branch networks, and industry officials cite online and mobile expansions as key factors leading to a reduction in branches across the country.

“Banks accelerated their plans to consolidate their branch footprints as the covid-19 pandemic spurred consumer adoption of mobile and digital channels,” S&P Global Market Intelligence reported earlier this year.

Nationally, there was a net loss of 2,126 bank branches in 2020 and a record 2,927 net branch reductions in 2021, representing a 38% year-over-year increase , S&P found. Arkansas lost 22 net local branches during the same period, according to research from the global financial services data firm.

However, bankers note that tipsters have been predicting the death of bank branches for more than 50 years since ATMs were introduced.

Community banks, with a commitment to local areas and small businesses, say they are not shying away from branch investments.

“Branches are still pretty much relevant,” Stone Bank’s Oldner said. “We want to give customers the convenience of the mobile app, but we still want our bankers to meet the customer. I’m not changing our strategy at this point. Customers want to know they have the human touch where they need it. want.” Gosnell, CEO of Farmers Bank, says a local presence is vital for small banks. “It’s still a matter of relationships,” he added. “The challenge is how maintain that relationship digitally.” The banking industry is at a critical inflection point in assessing where best to invest in growth, according to Potts.

“This is another great opportunity for our Community Bankers to rethink and reimagine the next evolution of their service and delivery strategy by combining the best of physical and digital approaches.”

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New Pennsylvania credit union marks ‘transformational moment’ https://blogcampcee.com/new-pennsylvania-credit-union-marks-transformational-moment/ Fri, 10 Jun 2022 20:10:55 +0000 https://blogcampcee.com/new-pennsylvania-credit-union-marks-transformational-moment/
Lancaster, Penn. (Source: Adobe Stock)

NCUA Board Chairman Todd Harper was on hand Tuesday to open the first branch of one of the nation’s newest credit unions in downtown Lancaster, Pa., about 80 miles West Philadelphia.

The NCUA granted Community First Fund Federal Credit Union ($3.1 million in assets, 60 members) its charter last June.

Community Fund Firstan independent nonprofit community loan fund, sponsored the credit union to create financial equity and economic mobility for individuals and families, especially African Americans, Latinos, immigrants and women, according to a press release from the fund.

Daniel Betancourt, president and CEO of the fund and credit union, said the credit union will work to improve personal financial stability and provide members with the opportunity to obtain affordable, quality housing. .

“We’ve served Lancaster for 30 years by providing access to credit to entrepreneurs who want to make a positive change in the community,” Betancourt said. “With the credit union, our mission is to provide a pathway to financial stability for families. We are excited to expand our service in the community and celebrate this milestone.

Daniel Betancourt Daniel Betancourt

In December 2020, the fund announced plans to launch the designated low-income credit union using part of a $10 million gift from MacKenzie Scott, a philanthropist who was married to the former CEO of Amazon Jeff Bezos for 25 years before their divorce in 2019. At the time, Forbes The magazine estimated his fortune at $59 billion. She pledged to give away most of her wealth during her lifetime.

The fund based its plan to launch the credit union on national research that showed:

  • 27% of US households are unbanked or underbanked;
  • Nearly 50% of African American households and 46% of Latino households are unbanked or underbanked; and
  • Nearly 50% of all Americans live paycheck to paycheck and can’t come up with $2,000 for a financial emergency.

To better understand the local need and demand for a credit union, the fund partnered with the Opinion Research Center at Franklin and Marshall College and surveyed Lancaster County residents. The survey demonstrated the need to strengthen the financial mobility of families and that the creation of a financial center would help promote financial fairness and economic prosperity.

Community First Fund FCU was licensed by the NCUA in June 2021 and is one of a handful of credit unions launched nationwide since 2017.

“It’s a wealth-creating institution,” Harper said. “Established by the community and for the community, it is at the very heart of our nation’s credit union system which was built on the principle of people helping each other.”

Community First Fund has received funding from private donors, local foundations such as Calvin and Janet High Foundation, Lancaster County Community Foundation, High Foundation and Ferree Foundation, and national banking partners such as Santander Bank and M&T Bank.

Santander Bank was the first banking partner to commit significant financial funding to launch the credit union with a contribution of $500,000 paid over five years.

M&T Bank, a long-time partner of Community First Fund, was the latest bank lender to contribute operational support. The bank has pledged to provide $1 million over the next five years to the credit union.

Tom Koppmann, regional president of M&T Bank for southeastern Pennsylvania, said the opening of the credit union was part of an effort to expand access to banking and other financial services to communities in the region who have been underbanked for years.

“It’s a transformative moment that could help uplift the whole community,” Koppmann said.

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Temenos: Optimus Cards signs with Temenos to expand its card-as-a-service business https://blogcampcee.com/temenos-optimus-cards-signs-with-temenos-to-expand-its-card-as-a-service-business/ Wed, 08 Jun 2022 06:42:12 +0000 https://blogcampcee.com/temenos-optimus-cards-signs-with-temenos-to-expand-its-card-as-a-service-business/
New

Optimus Cards signs with Temenos to expand card-as-a-service business

UK EMI expands portfolio with credit card and crypto services on Temenos open platform for composable banking

Press releases, June 8, 2022

Temenos – Company

GENEVA, Switzerland – JUNE 08, 2022 – Temenos (SIX: TEMN) today announces that Optimus Cards, the provider of white-label cards and banking-as-a-service, has subscribed to the Temenos open platform for composable banking to support the expansion of its cards-as-a-service business. Temenos will help the UK-based Electronic-Money Institution (EMI) launch new products faster and scale efficiently as it expands into new markets.

FCA regulated and principal member of Mastercard, Optimus acts as the primary card issuer and program manager. The company serves clients in the fintech and mutual sectors, offering a sophisticated platform that supports Apple Pay, Google Pay, open banking, as well as contactless and virtual cards, IBANs, sort codes and UK accounts, as well as ‘cardless’ cash withdrawal.

As part of Uphold, the global multi-asset digital trading platform with over 10 million users, Optimus has extensive growth plans. It is launching new white-label credit card and multi-asset crypto debit card services and is partnering with regulated local issuers in Europe and the United States to expand its footprint and tap into new growth opportunities.

The Temenos banking platform will process all transactions and manage customer accounts, and Optimus will also compose a lending solution to support its new credit card service. The platform connects in real-time via APIs to Optimus customers’ back-office systems to facilitate instant authorization from the customer’s account or crypto wallet.

Lindsay Robertson, CEO, Optimus Cards, commented:

“Our strategy is based on innovation, speed and flexibility, providing solutions to mutual institutions such as credit unions and building societies, and to innovative fintechs bringing Web 3 services to market. economy of our offering enables customers of all sizes to offer card services Optimus chose Temenos for the platform’s proven reliability and resiliency, as well as the flexibility to compose solutions for a wider range of banking offerings in the future, which includes more than 3,000 banking customers and 500 credit unions in the United States, Temenos also has an extensive customer ecosystem and experience that will be invaluable as we enter new markets.”

Max Chuard, CEO of Temenos, said:

“Banking as a service is a massive growth opportunity for innovative companies like Optimus Cards, which is estimated to be worth $3.6 trillion globally by 2030. To succeed with these new business models, you you need the right technology and platform for agility, scale, and innovation. Choosing the Temenos open platform for composable banking will allow Optimus to cost-effectively serve its customers while providing the flexibility and agility to expand its portfolio of integrated financial cards and payment solutions in the future.

The agreement was signed at Temenos Community Forum 2022 in London, Temenos’ global gathering of over 1,500 banks, fintechs, BaaS players and partners.

Press contacts Temenos

Jessica Wolfe and Scott Rowe

Temenos Global Public Relations

+1 610 232 2793 / +44 20 7423 3857close[email protected]

Alistair Kellie and Andrew Adie

Newgate Communications for Temenos

+44 20 7680 6550[email protected]

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Are you afraid of losing your house because of rising prices? Here’s how the experts say you can take action https://blogcampcee.com/are-you-afraid-of-losing-your-house-because-of-rising-prices-heres-how-the-experts-say-you-can-take-action/ Sat, 04 Jun 2022 11:00:48 +0000 https://blogcampcee.com/are-you-afraid-of-losing-your-house-because-of-rising-prices-heres-how-the-experts-say-you-can-take-action/

As the cost of living rises, some homeowners are skipping meals or postponing bill payments in a struggle to meet mortgage payments and keep their homes.

If you’re in this situation, experts say the sooner you act, the better – and you may not even realize how many options you still have.

It’s also important to understand that lenders like banks and credit unions don’t really want to take your home, said Adrian Schulz, mortgage broker with Centum Financial Services in Winnipeg.

“Nobody’s in the mortgage lending business,” Schulz said, adding that the first thing to do if you’re worried about making your mortgage payments is to talk to your lender about your situation.

“I think borrowers would be surprised at the number of options that will be presented.”

And just because you’re behind on your payment doesn’t mean you’ll be kicked out of your house immediately.

In Manitoba, lenders must wait until you’re at least a month late to start mortgage sale proceedings, said attorney Maria Grande, who has represented banks and credit unions in these situations.

Many will even wait a few more months to take action — and the whole process can take anywhere from six months to a year to complete, said Grande, a partner at Winnipeg law firm Thompson Dorfman Sweatman.

Lawyer Maria Grande says lenders like Manitoba banks and credit unions have to wait until you’re at least a month behind on your payments to start mortgage sale proceedings. (Submitted by Maria Grande)

Lenders also have to give you several warnings along the way, each with a chance to get you out of trouble by working out a plan with them before the house goes up for sale — something lenders want, too, Grande said.

“You might be able to do something if you come to the table that isn’t available once you’re on that path with the mortgage sale process, [which are] much harder to stop,” she said.

What options do you have?

Homeowners can refinance their mortgage, which can significantly lower monthly payments, mortgage broker Schulz said.

On the one hand, you can extend the amortization period of your mortgage — the number of years of the mortgage — through refinancing. That means it will take longer to repay and you’ll pay more interest, but it can lower your monthly payments, he said.

And most mortgages have prepayment options, which can let you pay them off faster if you earn extra money, like a tax refund or an inheritance. This can help counteract the extended amortization period, he said.

If you’re worried about not being able to make your mortgage payments, things like extending your amortization or refinancing your mortgage can help you avoid losing your home, says mortgage broker Adrian Schulz. (David Zalubowski/Associated Press)

“But at least you can sleep at night knowing your minimum monthly mortgage payment is considerably lower,” giving you more leeway to cover the rising cost of things like groceries and gas, a Schulz said.

Homeowners can also request to defer their mortgage payments.

But because lenders may view this unfavorably, it should only be done as a last resort, as it can negatively affect your future borrowing options, he said.

What if you don’t know what to do?

If you’re struggling to keep up with your debts and spending, but aren’t sure how to get back on track, it might be worth consulting a credit counselor.

They can reduce or eliminate some of your interest rates, help you pay off debt and give you the options that are best for you, said Brian Denysuik, interim CEO of Creditaid, a Winnipeg-based credit counseling agency. .

Depending on your situation, these choices may include changing from a variable interest rate mortgage to a fixed rate mortgage, postponing a foreclosure to assess your choices, selling your home, or referring to a trustee of bankruptcy, Denysuik said.

Brian Denysuik is interim CEO of Creditaid, a Winnipeg-based credit counseling agency. He says credit counselors can help you find the next steps that best suit your financial situation. (Submitted by Brian Denysuik)

The first meeting at an agency like Creditaid is free, he said.

And non-profit options also exist, such as the Credit Counseling Society, which offers almost all of its services for freesays its website.

“It’s just a matter of getting the right people together to talk, looking at what tools are available, what other mortgage options are available, and going from there,” Denysuik said.

Does this also happen to other people?

Grande said she has seen an increase in mortgage sales proceedings at her law firm in recent months.

And as mortgages mature, interest rates climb and job problems persist, it’s a trend she expects to intensify by winter, if not more. fall here.

As the Bank of Canada’s benchmark interest rate hits 1.5% and gasoline prices reach record highs, Denysuik said he also sees more customers asking for money. help lately, many of whom feared they wouldn’t be able to meet their mortgage payments.

He said he expects this trend to continue in the coming months as well and hopes more people will start asking for help as soon as they realize they need it, even if they think it’s too late.

“The sooner you seek help, the more options you have available,” he said.

“When it comes to the 11th hour, that certainly limits the options available, but that doesn’t mean there aren’t any.”

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Credit unions help Britons survive – but can they really compete with banks? | Borrowing & debt https://blogcampcee.com/credit-unions-help-britons-survive-but-can-they-really-compete-with-banks-borrowing-debt/ Sat, 04 Jun 2022 06:00:00 +0000 https://blogcampcee.com/credit-unions-help-britons-survive-but-can-they-really-compete-with-banks-borrowing-debt/

Credit unions have proven to be a lifeline for many people during the pandemic and the cost of living crisis, and now they are allowed to offer a wider range of products.

Zero-interest loans for people in financial vulnerability are being piloted and have so far helped borrowers pay for items ranging from school uniforms to essential furniture.

Meanwhile, more than a dozen credit unions have banded together to run a raffle savings account where someone wins £5,000 every month, in a bid to attract new customers to deposit money from them.

And the changes to the pipeline mean that they will for the first time be able to offer products such as car financing to their members.

These moves could help make credit unions a serious alternative to UK banks and other big players. However, some people may be concerned that since January, five have gone out of business.

Credit unions are member-owned and controlled non-profit cooperatives that have traditionally specialized in loans and savings for the less well-off.

There are around 400 in the UK, and membership is based on a ‘common bond’, who may work in a particular industry or live in a certain area.

To find a credit union you may be eligible for, go to findyourcreditunion.co.uk

Proponents say they play a unique role in providing an ethical home for people’s savings money and affordable loans to those who might otherwise be forced to turn to high-cost lenders or loan sharks.

In a speech last month (May), Treasury Economics Secretary John Glen paid tribute, saying “time and time again the sector has lived its core values… putting people before profit and meeting the challenges of our times” .

In recent years, credit unions have increasingly targeted people of all incomes, and many have branched out into checking accounts, mortgages, and other products.

Despite support from many quarters, credit unions have remained relatively low profile in Britain. But membership is on the rise: the number of adults who belong to one in the UK has reached 1.92 million, which is a new record, according to the latest data from the Bank of England. However, the number of “young filers” (i.e. children and young people) has been steadily declining for some time and now stands at 212,000.

In England, Scotland and Wales, the amount of interest credit unions can charge on their loans is capped at 3% per month on the declining balance, or 42.6% per annum APR (the cap is higher). low in Northern Ireland). This means that they can sometimes offer a very good deal for those borrowing small amounts over shorter periods.

However, many people who have essential borrowing needs, such as meeting unexpected expenses, cannot access or afford existing forms of credit. Some could afford to repay a loan over time, but not the often high interest levels that can be involved.

As a result, the government provided Fair4All Finance – a not-for-profit organization set up in 2019 – with £3.8m funding to pilot a “interest free loan schemefor people in this situation.

The first phase of the pilot is now underway. Since January, South Manchester Credit Union offers interest-free loans between £100 and £2,000.

Customers may be eligible in situations where they are denied a standard interest-bearing loan for affordability reasons, but the removal of interest makes the loan affordable. Or they may have been barred from accessing credit but their circumstances have changed, meaning their credit score shouldn’t be a barrier to lending.

“So far, the average loan value has been £490, with reasons for loans ranging from payment for driving lessons and initial childcare costs to enable customers to return to work, to funds for housing and to purchase school uniforms, essential furniture and white goods,” says Fair4All Finance.

The average loan term is 12 months, but the South Manchester Credit Union says it can go up to a maximum of 24 months for larger loans. Most of the applicants had poor or very poor credit ratings, but to date 94% of refunds had been honoured, he adds.

Officially, the South Manchester Credit Union’s interest-free loan pilot is over, but “we’re still doing it,” says Sheenagh Young, its chief executive. “We called it the Stepping Stone loan.”

Among those who removed one was Zainab, 43, a mother of three who had moved into a new home after domestic abuse. The property was largely unfurnished and she needed a loan to buy carpets, beds and bedding. Her credit rating has been damaged by recent utility company defaults related to her running away from her former home. Her income was also limited, but the credit union was able to offer her a £300 interest-free loan to have carpets installed and referred her to local organizations to help with the beds.

A wider pilot rollout is expected to begin later this year.

A separate program for testing a raffle savings account called Price saver took place between late 2019 and early 2021. It proved successful and 16 credit unions across the UK – including South Manchester, London Capital, Clockwise and Plane Saver – continue to run PrizeSaver.

With this, every €1 in your PrizeSaver account at the end of the month gives you automatic entry into the following month’s draw. You get a maximum of 200 entries per month, even if you have over £200 in savings. Each month, one person in one of the 16 credit unions earns £5,000, 10 savers earn £50 and 10 earns £20.

The upcoming Financial Services and Markets Bill is expected to include a provision allowing credit unions to offer hire-purchase and conditional sale (similar to hire-purchase) agreements to their members. This means that, like their American counterparts, they would be able to offer products such as auto financing.

Five credit unions have gone bankrupt since January, although some in the industry say those that go out of business often tend to be small, with a few hundred active members. Credit unions are covered by the Financial Services Compensation Scheme, which protects savings up to £85,000.

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ROIG Group Announces Expansion of Payments Practice https://blogcampcee.com/roig-group-announces-expansion-of-payments-practice/ Thu, 02 Jun 2022 05:46:46 +0000 https://blogcampcee.com/roig-group-announces-expansion-of-payments-practice/

ROIG Group Announces Expansion of Payments Practice

By Edlyn Cardoza

Today

ROIG Group, a specialist consultancy with a relentless focus on executable, client-centric results, is pleased to announce two new clients to its recently launched network. Payment practice.

The expansion of ROIG Group’s advisory offerings, led by industry experts Sheree Thornsberry and Shelly Schneekloth, comes at an exciting time for the FinTech and payments industries. According to Research and Markets, the global FinTech market is expected to grow at a CAGR of around 20% per year over the next four years. The market value is expected to reach approximately $305 billion by 2025. With the growing growth of the industry, many businesses are looking to integrate payments or other financial services into their existing customer experiences or innovate their legacy payment processes . Kasasa and Seattle Bank are two clients that will benefit from ROIG Group’s financial advisory services.

ROIG Group’s unique results-oriented approach is designed with individual client needs in mind. He uses a 360-degree methodology to ensure companies don’t go from strategy to execution without a solid plan. Thornsberry and Schneekloth’s decades of combined payments experience, combined with ROIG’s transformation expertise, help customers solve their biggest business challenges. This includes strategy development, capacity building, product and solution delivery management, and culture and change management.

ROIG’s payments practice is well positioned to help banks, credit unions, lenders, FinTechs, BAAS providers and others realize their growth potential. And in an era dominated by integrated finance, non-financial businesses that want to make complex payment issues disappear can also benefit from the practice’s end-to-end system.

“Accelerating digitalization has given virtually any middle-market brand, merchant or financial institution the opportunity to add innovative payment and banking services to their existing customer experiences,” said Sheree Thornsberry, ROIG Co-Head of Payments Practice. “While everyone wants to seize the opportunity, companies that want to integrate payments into their business model often underestimate what it takes to succeed in the space.”

Shelly Schneekloth, Co-Head of Payments Practice added, “Payments is more than a product, it’s a line of business, and we help organizations identify and close the most glaring gaps in their approach to delivering return on investment to long term. We are excited to help our partners accelerate their decision-making, develop winning strategies, identify and exploit opportunities for innovation, and fuel transformation.

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