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ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
October 24, 2019
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Why Much Is at Stake in the CFPB Court Case
The Supreme Court's decision to consider the constitutionality of the Consumer Financial Protection Bureau gives the conservative majority on the court yet another opportunity - thus far unrealized -- to validate and re-enforce the Constitution's separation of powers.
The Constitution vests all law-making authority in Congress, but also gives the president and the executive branch the exclusive authority to enforce the laws. The Framers created this separation because they believed that putting the power to make and enforce the laws in the same hands would endanger the peoples' liberty.
The power of executive branch agencies - which many call the administrative state - has grown rapidly since the New Deal. This has occurred because Congress has been unwilling or unable to make the difficult choices involved in legislating. Instead, it has enacted broadly phrased laws, essentially delegating the key legislative choices to administrative agencies and violating the Framers' constitutional plan of separation.
Read more at REAL CLEAR POLITICS
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The CFPB's new sandbox could help spur innovation in the financial sector
The financial sector may not top the list of highly innovative industries, as it can often be slow moving and overly cautious. While some of this is driven by risk aversion on the part of financial service providers, much of it can be attributed to the restrictive regulatory regime in which they operate. Recently, however, the Consumer Financial Protection Bureau (CFPB) made an effort to address this issue when it released its new Compliance Assistance Sandbox.
To date, it has been virtually impossible for a firm to introduce a new financial service or product without spending copious amounts of money just to find out whether it complies with existing laws and regulations. As you can imagine, this is not feasible for many would-be innovators.
In fact, the financial sector is one of the most heavily regulated sectors in the United States economy. For example, the Dodd-Frank Act alone is over 840 pages long and contains at least 27,000 restrictive words. Read more at THE HILL
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If You Can't Beat Them, Join Them: How Banks Can Better Tap into the Market for Mobile Financial Services
Vast majority of adults in emerging economies own, or have access to, a mobile phone
According to McKinsey, there are two billion individuals and 200 million small businesses in emerging economies lacking access to formal savings and credit, forcing them to transact exclusively in cash. At the same time, smartphone and mobile phone ownership in such areas is exploding. Recent surveys conducted in emerging and developing countries show the vast majority of adults in these areas own, or have access to, a mobile phone.
These two converging trends - large numbers of unbanked and underbanked persons combined with greater mobile phone access - creates a perfect storm for the rise of digital financial services. Suddenly mobile carriers have an opportunity to participate in the provisioning of financial services.
These services are impressively profitable. Some even qualify them as "extracting activities" because of a very high fees that apply especially to small transfers and remittances.
Read more at BANKING EXCHANGE
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These are the cities with the highest - and lowest - wage growth, according to PayScale
Despite unemployment being at a 50-year low, wage growth has remained mild in the U.S., according to Payscale.
Sudarshan Sampath, director of research at PayScale, tells Yahoo Finance that while nominal wages (those not adjusted for inflation) have been growing at a reasonably steady pace, real wages have not kept up.
"Gains and productivity are not being shown in real wages, and that's where you find some of the economic constraints Americans have," he said.
Sampath cites the housing market as an example. "You hear about the inability of first-time buyers to buy a home, and that's because they're not able to save enough. That's really a function of that real versus nominal wages."
Payscale's Q3 index showed a nominal wage increase of 0.5% quarter over quarter, or 2.6% year over year. The most substantial areas of wage growth were recorded in areas with a strong tech industry. Read more at YAHOO FINANCE
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How to Spot Résumé Fraud with Better Background Checks
Résumé fraud may be a sign of an ambitious prospective employee, but it can also lead to dangerous consequences for the businesses that hire an unqualified person. In a study conducted in 2017 by CareerBuilder, a full 75% of HR managers reported catching a lie on a résumé. Some hiring managers admire the motivation factor, but most won't take the chance. See why the risks outweigh the benefits and why background checks are crucial if you don't want to open your business up to a liability nightmare.
The Threat of the Unknown
Employers who hire someone they don't really know could potentially face the following:
- Accidents: Many people overstate their experience or their skill-level. If you plunge someone into a position they haven't earned, you're more likely to see costly mistakes.
- Fraud/theft: A person who lies on their résumé is a person who may be willing to bend the rules for fraud or theft in other respects.
- Violence: If a candidate lies about their criminal past, they may exhibit violent behavior when confronted with conflict.
- Turnover: Hiring someone is expensive. Even if it doesn't work out for benign reasons, you still have to find someone else to take their place.
Read more at MICROBILT NEWS
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FTC Report to Congress Details Fraud Reports from Older Consumers
Consumers 60 and older report losing money to scams less often than younger adults, but when they do lose money, they report higher individual losses
A new report from the Federal Trade Commission shows that adults aged 60 and older are less likely to report losing money to fraud than younger adults, but the amount of money they report losing is on the rise.
The report, Protecting Older Consumers 2018-2019: A Report of the Federal Trade Commission, outlines the FTC's research, law enforcement, and education efforts aimed at protecting older consumers-a top priority for the agency.
As part of the FTC's efforts to understand how fraud is affecting older adults, the report includes analysis of FTC consumer complaint data. In 2018, as in 2017, adults aged 60 and older were less likely than younger adults (aged 20 to 59) to report losing money to fraud. Younger adults reported losing money more often, but older consumers reported much higher dollar losses. In fact, people aged 80 and older reported losing the most, with a median individual reported loss of $1,700-a 55 percent increase over the previous year.
Read more at Federal Trade Commission
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Statement from Online Lenders Alliance (OLA) on Google's Ban of Certain Consumer Loan Services
POSTED ON OCTOBER 16, 2019
Following the recent news of Google banning certain consumer loan services from its app store the Online Lenders Alliance issued the following statement:
"By banning legitimate lenders that are licensed and regulated by state and sovereign nation authorities, Google is harming consumers in need of credit. Google is singling out credit products based on arbitrary factors. Lines of credit, installment loans, and point of sale offerings are all banned by this policy. It is these types of products that help many consumers meet their unexpected emergencies or help them consolidate debt.
Instead of making business decisions based on politics, Google should meet with those in the industry to better understand the types of products offered by our membership and work with them to find a way to protect consumers without eliminating products."
Read at Online Lenders Alliance
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"Behind the Apply button" - a blog series from Alchemy by Timothy Li
I am starting this blog series for anyone that might be interested in learning the day to day issues technologies in the FinTech space faces on a regular basis to get things done. What's really going on behind the "apply" button? All the blood, sweat, encouragement and camaraderie that make us get up in the morning and attack the most difficult asks of the day.
Partners
In today's ultra competitive environment, having a great FinTech idea will get you through the door of investors. Execution of your idea will get the investors to write checks. Your partners in your new venture is just as important as banding together with your co-founders and your first employees.
Your compliance, legal, operations and technology partners are your key to success in today's environment. Having great partnerships will increase your speed to market and grab marketshare when your competition is still noodling on their drawing board.
Read more at Alchemy
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FTC Report to Congress Details Fraud Reports from Older Consumers
Consumers 60 and older report losing money to scams less often than younger adults, but when they do lose money, they report higher individual losses
A new report from the Federal Trade Commission shows that adults aged 60 and older are less likely to report losing money to fraud than younger adults, but the amount of money they report losing is on the rise.
The report, Protecting Older Consumers 2018-2019: A Report of the Federal Trade Commission, outlines the FTC's research, law enforcement, and education efforts aimed at protecting older consumers-a top priority for the agency.
As part of the FTC's efforts to understand how fraud is affecting older adults, the report includes analysis of FTC consumer complaint data. In 2018, as in 2017, adults aged 60 and older were less likely than younger adults (aged 20 to 59) to report losing money to fraud. Younger adults reported losing money more often, but older consumers reported much higher dollar losses. In fact, people aged 80 and older reported losing the most, with a median individual reported loss of $1,700-a 55 percent increase over the previous year.
Read more at Federal Trade Commission
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Accelitas is ready to show you how AI Lift is transforming the credit landscape, accessing the millions of Americans invisible to traditional credit screening, identifying the 20%-30% of overlooked accounts ready to be profitable, and reducing risk, FDP, fraud and charge offs. Start with our free data test.
Recover More Profitable Accounts Using AI & Alternative Data
With the use of AI Lift, organizations have a much more efficient and effective way to identify creditworthy borrowers in record time, giving greater access to credit for overlooked segments of customers which leads to greater profitability. Best of all, you can start with the data you already have.
Receive a complimentary test of AI Lift to analyze applicants for overlooked signs of creditworthiness.
What happens during a data test?
- Receive a consultation to discuss your specific business goals.
- We analyze your historical business results to identify Predictive Indicators to improve your acceptance rates, lower FPD, and increase profitability.
- Receive a report highlighting the results with a customized strategy to incorporate the score into your loan decision process and data waterfall.
Read more at ACCELITAS
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Why Financial Regulations Need To Change With The Times
This past spring, I was fortunate to attend Dr. Robert Shiller's Financial Markets course at Yale University. Dr. Shiller was awarded the Nobel Memorial Prize in Economic Sciences in 2013; he is well-known in economics and finance circles for the Case-Shiller Home Price Index and his extensive work on behavioral finance.
The course title and the professor's fame led me to believe that I was walking into a traditional finance course with a possible emphasis on real estate and behavioral finance. After many years in finance, I was unsure that I would gain anything but a badge of honor for having learned under a Nobel Prize winner and reminisce years later when I tell my children and grandchildren about it. But what I left with was so much more than I had hoped for.
The course is designed to help young minds get a hold of the vast and complex world of finance, and it achieves that seamlessly. The impact a figure like Dr. Shiller can have on the minds of the future leaders in business and society should not go unnoticed.
Read more at FORBES
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The Best Credit Union in the Country Pays 7 Times the Average Interest Rate
More than 121 million Americans belong to a credit union, and if you're not in that group, it's worth asking yourself how come
Membership at these nonprofit financial institutions has been steadily climbing over the past several years, according to data from the Credit Union National Association, thanks to a combination of superior interest rates and minimal fees as compared to the country's biggest banks.
Because credit unions typically restrict membership to a specific geographic area, employer, or community, MONEY focused on credit unions that allow members to join from anywhere in the country, usually through a donation to a specific charitable organization, when picking the winner for our 2019 best credit union rankings.
MONEY also weighed whether credit unions offered free checking and savings accounts, competitive ATM fees and interest rates, and robust online and mobile banking tools, using account data provided by our partner MagnifyMoney. com. Read more at MONEY
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Amscot Financial Contributes Mini-Grants to 15 Non-Profit Service Groups
October 16, 2019
Amscot Financial, a leading provider of convenient, consumer-oriented financial services, recently awarded mini-grants of $100 to $5,000 to support 15 different non-profit service organizations located throughout Florida communities where the company serves several million consumers.
"As a business, our commitment to serve local non-profits is one of our highest priorities," stated Ian MacKechnie, Founder and CEO of Amscot Financial. "We strive to help grow and enrich our Florida communities by supporting the various organizations that provide outreach and compassion to our fellow neighbors."
Mini-grants went to the following organizations:
Arthritis Foundation, Florida: The Arthritis Foundation offers Central Florida children living with arthritis the opportunity to attend JA Camp and Family Retreat Weekends. They offer 2 sessions of summer camp and one JA Family Retreat weekend in the spring. Read more Here
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ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
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| Alternative Financial Service Providers Association
757.737.4088 315 Tuscarora St., Lewiston, NY 14092
[email protected]
www.afspassociation.com |
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