ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION | |
edition: January 30, 2025 | |
2025 Will Be the Year of the Credit Card
For many consumers, credit cards (not checking or savings accounts) are now the core of their relationship with their bank or credit union. In fact, almost two-thirds of consumers do no other business with their credit card issuers. In 2025, banks and credit unions need to work harder to make the credit card the beginning of the customers’ journey, not the end.
2025 is shaping up to be a landmark year for credit cards, driven by shifting consumer preferences and evolving business needs. Recent Federal Reserve data shows credit card applications hitting their highest levels since pre-pandemic times, with approval rates climbing steadily. Major issuers like Chase and American Express reported record-high application volumes in Q4 2024, indicating sustained momentum into 2025.
Rivel’s new research digs deeper into the reasons why credit cards are in demand right now and how financial institutions can advocate for new business, to the right audiences.
Opportunities for Growth
Within the last year, 43% of US consumers have opened a new credit card account – highest among Gen Z (68%) and Millennials (35%). With prices remaining elevated, more households are turning to credit cards for both everyday purchases and large expenses. It also continues to be highly sought after for businesses as it becomes a more common format for vendor payments and cashflow management.
Read more at The Financial Brand
| |
Paving the Payments Future
Proven payment technology helps businesses pay and
get paid so they can focus on what matters most.
| |
Have a tax law question?
Our #IRS Interactive Tax Assistant has answers.
Watch this short video to learn more:
https://youtu.be/y6HkaBkdKdU
IRS TEXTING SCAMS
-
The #IRS warns taxpayers of a recent increase in IRS-themed texting scams, often related to bogus Economic Impact Payments. Stay alert and keep safe: www.irs.gov/scams
Jose L. Santiago
Public Affairs Specialist
Tax Outreach, Partnership and Education
Email: jose.l.santiago@irs.gov
| |
AI and the Future of Financial Services: The View from Davos
A new report from the World Economic Forum surveys the current state of AI in banking and financial services, finding both optimism and reasons for alarm.
Why we picked this report: Released to coincide with this year’s Davos gathering, this WEF report will likely find its way onto the reading lists of many leaders — not just those in the financial industry itself, but also in governments, regulatory bodies and others who have an interest in the future of financial services.
Executive Summary
Artificial intelligence is rapidly transforming the financial services industry, with investments projected to reach $97 billion by 2027. This recent report by the World Economic Forum and Accenture, part of a promised series on AI in financial services, argues that banks and other financial institutions are uniquely positioned to capitalize on AI due to their data-rich, language-heavy operations.
Furthermore, while early AI adoption focused primarily on efficiency gains, the reports says more than two-thirds of financial services executives now believe AI will directly contribute to revenue growth, revolutionizing everything from customer experiences and product innovation to risk management and compliance.
Read more at HRDIVE.com
| |
How to Leverage the Small Dollar Lending Rule (SDLR) to Improve Your Borrower Experience: PAYLIANCE
The SDLR isn’t just a set of rules to follow—it’s a chance to redefine how you engage with borrowers and manage your operations. Lenders who adapt thoughtfully will not only stay compliant but also gain a competitive edge in the market.
1. Build Borrower Trust Through Transparency
Borrowers value clarity, especially when it comes to their finances. Use SDLR-mandated notifications to:
Clearly communicate payment schedules and account activity.
Reduce disputes and borrower confusion over payment attempts.
Reinforce trust by showing you’re proactive and transparent.
When borrowers feel informed, they’re more likely to stay engaged and maintain good payment habits.
2. Streamline Operations with Automation
Read more at PAYLIANCE
| |
3 Banking Leaders’ Priority Projects in 2025 — And How They Picked Them
How do community bank leaders prioritize upgrades amidst changes in technology, regulation, and competition? From AI integration to FedNow, here's how three presidents/CEOs balance innovation, customer needs, and long-term growth to stay ahead
There are only so many work hours in a year, and only so much budget to cover projects that upgrade a banking institution. The objectives that must occur often find spots atop the to-do list, but what defines top placement when banking changes with each year?
The past 15 years have brought a steady drumbeat of change. Bank presidents and CEOs often talked about changes in regulation after the Dodd-Frank Act in 2010.
Read more at The Financial Brand
| |
Benefits of Debit Cards for Loan Repayments: by Kristen Hoyman at REPAY
In a world where consumers expect fast and easy convenience, traditional loan repayment methods like checks and ACH transfers often fall short. These methods are plagued by delays, inefficiencies and risks that frustrate borrowers and burden lenders. Enter debit cards — a modern payment option that offers speed, convenience and security.
Today, debit cards are one of the most popular payment options available, particularly for younger consumers. According to the Federal Reserve’s annual Diary of Consumer Payment Choice, debit cards are neck-and-neck with credit cards for the most popular payment choice. Debit cards are most popular in the 25-54 age demographic, where they are used in a third of all transactions.
This blog explores how adopting debit cards for loan repayments can improve the payment process for both lenders and borrowers. From faster approvals to stronger security, debit cards provide a streamlined solution that meets the needs of today’s fast-paced financial landscape.
Read more at REPAY
| |
Customized Payment Processing and
Merchant Service Provider for Your Business
| |
Trump finally signed a crypto executive order. Here's what it means
President Donald Trump signed a highly-anticipated executive order late Thursday establishing a working group on digital assets that will be responsible for putting forward potential regulations for the sector and evaluating a national cryptocurrency stockpile.
The order makes good on promises Trump made on the campaign trail, starting with the creation of a strategic national Bitcoin reserve — and comes as the president and his family have deepening ties to and growing personal financial stakes in the crypto industry.
The White House said the order is aimed at “providing regulatory clarity and certainty built on technology-neutral regulations, frameworks that account for emerging technologies, transparent decision making, and well-defined jurisdictional regulatory boundaries.”
Read more at YAHOO/FINANCE
| |
‘Do It for Me’ Will Power the Next Phase of Innovation in Banking
Digital tech's next wave, powered by AI, will empower consumers to say "do it for me" rather than do it themselves. U.S. Bank's innovation team found some promising building blocks at CES 2025.
Digitization ushered in major shifts for many aspects of consumer financial services. Online banking and then mobile banking apps made "everything DIY on a device," says Don Relyea, chief innovation officer at U.S. Bank. But Relyea is convinced that the age of DIY banking is coming to an end.
"I think the next big space is going to be the emergence of a ‘do it for me’ customer experience," says Relyea. "Both consumers and companies are going to have tech that will enable them to get information proactively and they’re going to expect companies to do things for them proactively."
DIFM — "do it for me" — doesn’t have quite the panache for DIY, but "GenAI" didn’t used to look cool either.
Read more at The Financial Brand
| |
Enabling organizations to streamline payment acceptance,
minimize processing costs, and reduce the risk of fraud.
| |
Financial literacy means financial well being: PEW
Roughly half of Americans are knowledgeable about personal finances: PEW
About half (54%) of U.S. adults say they know a great deal or a fair amount about personal finances. Another 33% say they know some about personal finances, while 13% say they don’t know much or know nothing at all, according to a 2023 Pew Research Center survey.
Knowledge about personal finances can refer to several strategies for managing money, including saving, budgeting, managing debt or investing.
Financial literacy has been associated with greater financial well-being. There have long been economic gaps between Americans of different backgrounds, and our survey also finds gaps in financial literacy:
Americans in households with upper incomes (72%) are more likely than those in households with middle (56%) or lower incomes (42%) to say they know at least a fair amount about personal finances.
Read more at Pew Research Center
| |
Inflation and Interest Rates Will Bedevil Many Bankers in 2025
Rates and inflation are intertwined. And both experts and consumers are beginning to see more signals of rising inflation.
Economically, the only thing that bankers can be certain of right now is ongoing uncertainty.
The outlook for inflation is hazy at best, in spite of periodic bouts of market euphoria, and multiple factors may erode the optimism many bankers have bought into. The uncertainty on interest rates, inextricably tied up in inflation expectations, is even hazier. Where not long ago the debate was on how fast the Federal Reserve would cut short-term rates, now there is speculation that before yearend the Fed will be pushing rates back up again.
The handiest readout of rates is the yield curve, which many institutions have been struggling with for some time.
Read more at The Financial Brand
| |
Beyond 'Buy Now, Pay Later': How Citi is Reinventing Point-of-Sale Lending
Citi executive Terry O'Neil explains how the bank is integrating payment solutions across physical and digital channels while maintaining security and trust, as consumers increasingly demand flexible payment options at point of sale.
As embedded financial products and flexible payment solutions reshape consumers’ interactions with banking services, financial institutions must evolve their strategies to meet changing customer expectations.
On a recent episode of the Banking Transformed podcast, host Jim Marous spoke with Terry O’Neil, head of connected commerce for Citi Retail Services and head of strategic partnerships for Citi U.S. Personal Banking, about how the convergence of traditional banking capabilities with modern digital experiences is creating new opportunities.
Read more at The Financial Brand
| |
Resources available to assist with connection between mental health, financial wellness
There is a strong correlation between financial stress and mental health. According to Forbes, stress resulting from financial uncertainty often leads to chronic anxiety and stress.
A CreditWise survey released in May 2024 said 73% of Americans rank their finances as their No. 1 stressor. Additionally, the Project Healthy Minds 2024 State of Mental Health survey results found that 66% of Americans said financial issues have hurt their mental health in the past year.
Each year, January is recognized as Financial Wellness Month, which provides an opportunity to review financial wellness and mental health resources that are available to help.
Read more at PURDUE UNIVERSITY
| |
The Most Advanced Self-Service Check Cashing ATM
Check Cashing, Money Transfer, Bill Payment, Mobile Reload, ATM and more.
| |
Treat AI as a new kind of talent to realize productivity gains
Think of artificial intelligence as an intern for every employee, suggests West Monroe’s Steven Kirz.
Just about every business has felt the pressure to adopt artificial intelligence, including generative artificial intelligence. But a majority of executives are still waiting to see the efficiency, productivity and competitive advantage gains they expected: In one study, 42% of companies said they have yet to see a significant return on their AI investments.
Many executives attribute AI’s shortcomings to its complexity, leading them to question whether it’s over-hyped. But a clear pattern emerges when comparing successes and failures: Companies that treat AI as just another technology — tasking IT or external providers with implementation — often miss its true potential. However, those that treat AI as a new kind of talent discover possibilities far beyond what a conventional tech mindset can achieve.
Read more at HRDIVE.com
| |
Cash Isn’t Gone Yet. Here’s How to Make Handling It More Efficient
Stacks of cash sitting idly in teller drawers and ATM canisters cost banks serious dollars. A combination of techniques minimize waste without leaving customers high and dry.
Digital transactions increasingly dominate world commerce, yet cash continues to play a critical role in the global financial ecosystem. For instance, in the U.S. the share of payments made with cash decreased to 16% in 2023, but it remained the third most-used payment instrument behind credit and debit cards, per a 2024 Federal Reserve study.
The popularity of mobile wallets, instant payments and contactless solutions have caused cash usage to decline from previous years, but cash remains a preferred payment method for certain demographics that favor traditional payment options over digital ones. This ongoing reliance on cash underscores the necessity for financial institutions to implement efficient, modernized cash management practices to optimize financial operations and improve accessibility.
Read more at The Financial Brand
| |
Watch Your Business Skyrocket.
More Visibility. More Customers. More Loans
| |
Walmart’s market managers can now earn up to $620K annually
The compensation changes reflect the key role these multistore supervisors play in the success of the business, the retailer said.
Dive Brief:
- Walmart is adding $25,000 in annual stock grants to its compensation package for market managers, the company confirmed to Retail Dive on Friday. The change makes the managers eligible for $100,000 in stock grants annually.
- The company also raised the minimum salary for market managers, who typically oversee about a dozen stores and store managers, from $130,000 to $160,000. The upper end of the pay range remains $260,000. Additionally, these managers may now earn an annual bonus of up to 100% of their salary — that’s an increase from 90% previously.
- With the recent stock grant and bonus potential adjustments, the total annual compensation package for Walmart’s market managers may now reach $620,000.
Read more at HRDIVE
| |
U.S. women are outpacing men in college completion, including in every major racial and ethnic group: PEW
Women between the ages of 25 and 34 continue to be more likely than men in the same age group to have a bachelor’s degree. The gender gap in bachelor’s degree completion appears in every major racial or ethnic group, though the size of the gap varies widely.
In 1995, young men and women were equally likely to hold a bachelor’s degree (25% each). Since then, there has been a growing gap between men and women in college completion.
Today, 47% of U.S. women ages 25 to 34 have a bachelor’s degree, compared with 37% of men.
The share of young women with a bachelor’s degree has increased by 22 percentage points since 1995, from 25% to 47%. Over the same period, men have seen a smaller increase (12 points, from 25% to 37%).
Read more at Pew Research Center
| |
Send the AFSPA 'Consumer Financial Education' Newsletter
to your your customers for FREE
| |
Economic Inequality Seen as Major Challenge Around the World: PEW
Most say rich people’s political influence is a big contributing factor
A new Pew Research Center survey of 36 nations finds widespread public concern about economic inequality. And when asked what leads to this inequality, most people across the countries surveyed point to the intersection of wealth and politics.
The key findings of the survey include:
A median of 54% of adults across the nations surveyed say the gap between the rich and the poor is a very big problem in their country. Another 30% say it is a moderately big problem.
A median of 60% believe that rich people having too much political influence contributes a great deal toward economic inequality.
These views are especially common among people on the ideological left, though many on the right agree. Ideological divisions are particularly large in the United States.
Read more at Pew Research Center
| |
POST your JOB OPENINGS HERE | |
FSBO POSTINGS in the Newsletters | |
ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION | |
Alternative Financial Service Providers Association
757.737.4088
315 Tuscarora St., Lewiston, NY 14092
dan@afspassociation.com
www.afspassociation.com
Copyright © AFSPA 2007-2025
| | | | |