October 22, 2020
The Gateway For Payroll Data
More than 7 million households lacked bank, credit union accounts in 2019: FDIC
Roughly 7.1 million U.S. households did not have an account with a bank or credit union in 2019, according to a report released Monday by the Federal Deposit Insurance Corp. (FDIC).

Last year, 5.4 percent of U.S. residents was “unbanked,” the FDIC reported in its biannual survey of how American households interact with the financial system. The unbanked rate fell 1.1 percentage points from 2017 and has declined in every survey conducted since 2011.

The FDIC estimated that of the 124.2 million U.S. households with a bank or credit account in 2019, roughly 1.5 million did not have one in 2017. The survey was conducted with the Census Bureau in June 2019 and received responses from nearly 33,000 households.
Lending as a Service
The Cashless Controversy: How Fintechs Can Be Both Innovative and Inclusive
The pandemic has created many new, unforeseen challenges for people around the world. Most of the issues dominating headlines and our collective headspace existed well before the pandemic. But now, in a world that feels like it’s been turned upside down, they have been exacerbated. The debate around payments innovation and cashless societies is a prime example.

Many governments and companies have pushed to outlaw cash to help flatten the curve and drive innovation in payments. But this initiative, while seemingly progressive and the obviously safer thing to do, has many unintended and dangerous consequences for unbanked or underbanked consumers. Fintech, as an industry, has a responsibility to examine the way forward. Truly innovative solutions will include all shoppers, not divide them.
Paving the Payments Future
Big U.S. banks offer muddled outlook on how bad coronavirus losses might get
NEW YORK (Reuters) - Will loan losses from the coronavirus recession get worse, much worse or extremely worse over the next six-to-12 months? All of the above, bank executives said this week.

In reporting third-quarter results, CEOs and finance chiefs at the five biggest U.S. lenders gave a muddled picture of what to expect. Economic conditions improved in recent months thanks to pandemic lockdowns lifting, as well as government assistance and loan forbearance. But it is not clear that stimulus programs will continue or whether the world is headed for a new wave of infections.

"The economy and the markets this year have been defined more than anything else by the impact of the global health-care crisis," Bank of America Corp BAC.N Chief Executive Brian Moynihan said on Wednesday. "This has created a sinuous path for the recovery."
UPDATE! Educate the public!

IRS extends Economic Impact Payment deadline to November 21 to help non-filers

WASHINGTON — The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline.

Pandemic could reverse uptick in banked households, FDIC says
  • Although the number of American households with bank accounts grew in 2019, the coronavirus pandemic is likely to contribute to an increase in unbanked people, according to a survey released Monday by the Federal Deposit Insurance Corp. (FDIC).
  • Nearly 95% of U.S. households, approximately 124 million, were banked last year, the highest number and percentage of households since the survey was first conducted in 2009, the agency said in its biennial report.
  • "[F]indings from multiple years of the survey suggest that the unbanked rate is likely to rise as the unemployment rate rose from its level prior to the pandemic," FDIC Chairman Jelena McWilliams said Friday in a speech ahead of the report's release. "Households without a paycheck tend to be banked at lower rates than those with a paycheck. The economic ramifications of the pandemic will likely have an outsize impact on households without an adequate savings cushion or without access to responsible, affordable credit."

Fed chair remains cautious on regulator's digital dollar efforts
  • Federal Reserve Chairman Jerome Powell would rather "get it right" than "be first" in researching and potentially developing a central bank digital currency (CBDC), he told a panel hosted Monday by the International Monetary Fund (IMF).
  • The Fed's primary interest lies in improving the payments landscape rather than in replacing the dollar, Powell said.
  • Powell's philosophy of getting it right would balance benefits such as speedier and cheaper cross-border transactions against risks such as cyberattacks, counterfeiting and fraud.

Regulators close Florida's First City Bank, 2020's 3rd bank failure
  • Regulators closed First City Bank of Florida on Friday, making the Fort Walton Beach-based bank the third financial institution to fail in 2020.
  • The $134.7 million-asset bank experienced "longstanding capital and asset quality issues, operating with financial difficulties dating back to 2009," the Federal Deposit Insurance Corp. (FDIC) said in a statement Friday. The bank's financial difficulties were not related to current economic conditions resulting from the coronavirus pandemic, the regulator added. 
  • Evansville, Indiana-based United Fidelity Bank will assume all of First City Bank of Florida's $131.4 million in deposits, the FDIC said.

House panel blasts banks over gap in PPP loan processing times
JPMorgan's larger borrowers waited an average of 3.7 days from application to funding, while others waited 14. But U.S. Bank applicants, regardless of size, saw little difference, a report found.

A scathing report published Friday by the House Select Subcommittee on the Coronavirus Crisis illustrated the gulf in Paycheck Protection Program (PPP) loan application processing times at several large banks.

JPMorgan Chase processed PPP loans of more than $5 million in an average of 3.7 days, compared with more than 14 days for loans of less than $1 million, according to data the bank provided the panel. The bank processed applications from companies with more than 100 employees in 8.7 days on average, but took more than 14 days to process applicants with between five and 100 employees, the report showed.

The nation's largest bank is not alone.
2020: A Day in the Life in RTO | Heather DeLucia
Name: Heather DeLucia
Years in RTO: I have been in RTO for four years. They have been the best years of my life.

What’s your current role/title?
Administrative Support Manager at Jaguar Holdings LLC, dba Eagle Rental-Purchase

What did you do before RTO?
I worked as an Administrative Assistant at Phantom Fireworks and a National Roofing Coordinator at Sodexo.

What do you do in a typical day or week?
Retail And The Underbanked Opportunity
In the last 10 years, the global retail industry has been hit by a debilitating concoction of technological disruptions and competitive challenges. From issue-based brand boycotts to rapidly changing customer expectations, many of these challenges have disproportionately affected the brick-and-mortar retail market.

Even before the current global pandemic, it was becoming increasingly clear that traditional brick-and-mortar retailing was entering a period of protracted decline. Now, faced with volatile trading conditions and intensifying competition from e-commerce platforms, brick-and-mortar vendors have found it increasingly difficult to keep up with online retail giants like Amazon AMZN -0.3% and Alibaba BABA +0.8%.
FDIC survey finds record number of American households obtained a bank account in 2019
A new survey by the Federal Deposit Insurance Corporation titled How America Banks: Household Use of Banking and Financial Services found a record 124 million U.S. households, or 95% of Americans, had a bank or credit union account in 2019.

Meanwhile, about 7.1 million American households, or 5.4%, were unbanked last year, the lowest rate on record since the agency's biennial report began in 2009.

The survey, which collected responses from nearly 33,000 households in June 2019, found that between 2017 and 2019, more than 1.5 million new households opened bank accounts, and the use of mobile banking as the primary means of accessing accounts more than doubled since 2017, leading all other methods including tellers, ATMs, and online banking.
Alternative Financial Service Providers Association
315 Tuscarora St., Lewiston, NY 14092