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DOW 30  -0.04% -17.15 46,253.31

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Why banks are finally rethinking fintech partnerships

Research suggests that banks already maintain an average of 9.4 fintech partnerships and spend roughly US$378 million per year on digital transformation. Yet many of these collaborations have failed to deliver lasting value - often because of vague goals or unclear performance metrics. If banks and fintechs want to unlock the next wave of innovation, they must rethink how they work together.

The first phase of partnerships

Early relationships between banks and fintechs resembled vendor contracts, where fintechs plugged apps and user interfaces into banking systems. These arrangements helped test demand but often created duplication, clashing risk appetites, and left compliance gaps. Banks’ customers were frequently required to complete separate onboarding processes with both parties. The result was duplicated effort, frustration, and limited efficiency.

Compliance and regulation mature the model

That model began to change as fintechs recruited compliance specialists from banks and invested in their own robust KYC and monitoring systems.

Read more at GlobalData

Jamie Dimon says auto company bankruptcies reveal 'early signs' of excess in corporate lending

JPMorgan Chase CEO Jamie Dimon said Tuesday that bankruptcies in the U.S. auto market are a sign that lending standards grew too lax in the past decade-plus.

Dimon, the longtime leader of the largest U.S. bank by assets, was speaking about the recent collapse of auto parts firm First Brands and subprime car lender Tricolor Holdings.

"These are early signs there might be some excess out there," Dimon said. "If we ever have a downturn, you're going to see quite a bit more credit issues."

JPMorgan Chase CEO Jamie Dimon said Tuesday that bankruptcies in the U.S. auto market are a sign that corporate lending standards grew too lax in the past decade-plus.

Dimon, the longtime leader of the largest U.S. bank by assets, was speaking about the recent collapse of auto parts firm First Brands and subprime car lender Tricolor Holdings.

Read more at CNBC

POLL: MOST U.S. ADULTS BELIEVE QUALITY OF LIFE WOULD BE BETTER IF PROVIDED FINANCIAL EDUCATION IN SCHOOL

New nationwide opinion polling from the National Endowment for Financial Education® (NEFE®) examines which school subjects U.S. adults believe students need to learn to prepare for life after graduation. The polling shows that "Economics/Personal Finance" and "Mathematics" were the only subjects selected by at least 75% of respondents when asked to select their six ideal core subjects. Additionally, 70% of respondents who did not take financial education stated their current quality of life would be better if they had the opportunity to take it.

"We believe schools and school districts should strongly consider the courses they offer—and even require—to fully prepare young adults for their futures. A majority of states now require financial education, and this poll reinforces the importance of these efforts," says Billy Hensley, Ph.D., president and CEO of NEFE. "These data do more than simply support the need for financial education. The findings indicate that many U.S. adults believe it is on the same level of importance as core curricula that students must complete throughout their educational careers."

NEFE, in conjunction with Verasight, polled U.S. adults on their general views of education, including whether it should be viewed as a guaranteed right, what the purpose should be, where additional funding should be allocated, and which subjects should be required, elective or not offered at all.

Read more at STREET INSIDER

Why ‘Self-Driving Money’ Is the Next Revolution: Citi’s Fintech Chief

On a recent episode of the Banking Transformed podcast recorded at Money20/20 in Riyadh, Saudi Arabia, Citi’s Ronit Ghose and host Jim Marius discuss a coming era of "self-driving money" where AI manages finances automatically as institutions embrace stablecoins and on-chain transactions.

Artificial intelligence, blockchain and shifting global power centers are converging to redefine how money moves and how banks operate worldwide.

The economic center of gravity is moving east toward Asia and the Gulf, signaling a new phase in the evolution of global finance and financial technology.

Q: You’ve spent 28 years at Citi — what drew you to relocate from London to Dubai nine years ago?

Ronit Ghose: Part of the reason for relocating was I wanted to be closer to the economic center of gravity, which has been somewhere around New York, London for much of the 20th century, is shifting back east to where it used to be in the 18th century and the 17th century. Somewhere between China and India, or probably in the stands if you did the geolocation of the economic center of gravity and so I wanted to be back near where the future was being built.

Read more at The Financial Brand

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Point-of-Sale Finance Series: Understanding State Licensing for Nonbank Providers

In this insightful crossover episode of The Consumer Finance Podcast and Payments Pros, host Taylor Gess is joined by Joseph Reilly and Paul Boller to explore the intricacies of state licensing in the point-of-sale finance sector. The discussion delves into the distinctions between licensing and notification requirements, the role of sales finance agencies, and the implications for third-party facilitators and direct lenders. Gain insights into how state-specific regulations impact nonbank entities and learn about the unique challenges sellers and third-party providers face in navigating these regulatory landscapes.

Read more at Troutman Pepper Locke

Turkish bank opens branches to schoolchildren for hands-on financial education

Garanti BBVA is bringing students inside its branches to demystify banking and build financial literacy from an early age. The initiative invites teachers and students in grades three through eight to visit local branches, where they participate in interactive activities covering savings, budgeting and money management. Students see firsthand how a bank operates while learning practical financial concepts.

During these visits, young participants explore banking professions and gain insights into daily branch operations, from customer service to transaction processing. The program, which launched in September 2025, aims to equip children with foundational knowledge that will inform their financial decisions as adults. Teachers from schools affiliated with Turkey's Ministry of National Education can apply to bring their classes through the bank's doors.

Read more at TRENDWATCHING

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If You Make $100,000, Here's What the 2026 Standard Deduction Means to You

Key Points

• The standard deduction is rising in 2026 by $350, or $700 for couples.
• The tax brackets are changing slightly as well.
• Assuming the same income, your tax bill could go down slightly for 2026.
• The $23,760 Social Security bonus most retirees completely overlook ›

Each year, the IRS adjusts certain figures to keep up with inflation, and one of them is the standard deduction. And we just got updates for 2026 for this and most other inflation-dependent IRS numbers.

As you might expect, the standard deduction for 2026 will be a little higher than it was in 2025. Here's a rundown of how much the 2026 standard deduction is, and what it could mean to Americans who earn $100,000 per year.

Read more at The Motley Fool

Americans Flock To Klarna Card As Sign-Ups Pass 1 Million Since July 4 Launch

NEW YORK—More than one million Americans have signed up for the Klarna Card since its U.S. debut on July 4, the company said, marking one of the fastest adoption rates for a new consumer payments product this year.

The debit-first card, which allows users to pay immediately or spread out payments over time, has attracted roughly 13,000 new sign-ups each day—peaking at 50,000 in a single day on Sept. 23, according to Klarna. The company said the rapid uptake reflects growing demand among consumers for flexible and transparent payment options amid shifting spending habits.

Klarna, which operates as a digital bank and payments platform, launched the product as part of a broader effort to expand beyond its buy now, pay later roots. The company said the card combines the everyday utility of a debit card with the ability to defer purchases—an approach designed to appeal to users seeking more control over their finances.

The card’s early traction positions it as one of Klarna’s most successful product launches in its two-decade history, the company said.

Read more at CREDIT UNION TODAY

INFiN's 2025 MoneyTrends Conference

October 26-October 29

Contact: LeeAnn Thompson, Director of Member Services

lthompson@infinalliance.org

Card spending declines in September, but rise of ‘treat purchases’ boosts furniture, streaming and beauty

Consumers’ confidence in their ability to live within their means reached a four-year high at 78 per cent and confidence in personal finances remained resilient

Almost half are making changes to their personal finances in anticipation of the Autumn Budget, with one in three of this group building a savings buffer

Public transport saw its greatest decline since March 2021 due to widespread strikes, contributing to in-person sales dipping -1.6 per cent

Clothing marked eight months of consecutive growth and streaming climbed 3.9 per cent, amid the success of hit shows House of Guinness and The Summer I Turned Pretty

The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending

Consumer card spending declined -0.7 per cent year-on-year in September, down from 0.5 per cent growth in August and lower than the latest CPIH inflation rate of 4.1 per cent. Essential spending fell -2.6 per cent, while growth in discretionary spending slowed to 0.2 per cent. Clothing, furniture and beauty all had strong months, however, as affordable, ‘pick-me-up’ purchases were prioritised amid wider cutbacks. 

Read more at BARCLAYS

TAX TAKE: Impact of the Shutdown on the IRS Guidance Process

Last week, we noted the long-awaited release of the 2025-2026 Internal Revenue Service (IRS) Priority Guidance Plan (PGP) just before the government shutdown went into effect on October 1, 2025. Relying on Inflation Reduction Act funding, the IRS was able to avoid the impact of the shutdown for five days, but that reprieve ended on October 8, 2025.

The new PGP significantly reduced the number of projects on the plan with those projects being "the focus of [the government's] efforts during the plan year," which ends on June 30, 2026. With the IRS already facing significant senior leadership, personnel, and funding issues, the government shutdown only exacerbates the challenges ahead for the agency.

At the highest levels, the IRS is led by two Department of the Treasury officials in an "acting" capacity – Secretary Scott Bessent as Acting Commissioner and Assistant Secretary for Tax Policy Ken Kies as Acting Chief Counsel. But reinforcements are on the way, with the announcement that Commissioner of the Social Security Administration Frank Bisignano will serve in the newly created role of IRS Chief Executive Officer and the Senate Committee on Finance favorably reporting the nomination of Don Korb as Chief Counsel. Yet even with these two senior-level officials soon in place, the loss of other senior executives at the IRS and Office of Chief Counsel, combined with the recently announced furloughs, could slow the gears a bit. It is expected, however, that the administration will continue to prioritize – even through the shutdown – promulgation of guidance to implement the One Big Beautiful Bill Act (OBBBA).

Read more at Miller & Chevalier Chartered 

Earned Wage Access Product Deemed Credit Under MLA

Leading Federal District Court to Deny Motion to Compel Arbitration

Last week, the U.S. District Court for the Northern District of California denied Empower Finance’s motion to compel arbitration in a class action lawsuit concerning its earned wage access (EWA) product, Cash Advance. In Vickery v. Empower Finance, Inc., the court found that Empower’s Cash Advance product was “credit” under the Military Lending Act (MLA) making Empower’s arbitration agreement unenforceable under the MLA, which prohibits arbitration agreements for consumer credit extended to active-duty service members and their dependents.

Background

Empower Finance offers an EWA product branded as “Cash Advance,” which allows users to access funds approximating their earned but unpaid wages before payday. Empower’s contracts provided for non-recourse advances, however, did not affirmatively disclaim that consumers had no obligation to repay such advances.

Read more at Troutman Pepper Locke

PayPal CEO Says the 'Granddaddy of Fintech' is Ready to Disrupt Itself

In an increasingly cashless world, buying a new fall sweater or splitting drinks with friends has been left to e-commerce.

PayPal is a leading platform for both online commerce and peer-to-peer money transactions. The company was a pioneer in the fintech space, launching its first version of an electronic payment system in 1999. Since then, it has acquired several companies, including Venmo, an app that allows users to easily split bills and transfer funds from their banks, in 2012.

As the global economy and tech world continue to evolve, PayPal remains at the forefront of customer-led innovations that help users manage their money safely and efficiently.

Before becoming president and CEO in 2023, Alex Chriss told Newsweek he didn't fully recognize the impact that PayPal has on a global stage. His goal was to avoid complacency and prepare the company to be at the forefront of the evolving financial industry.

Read more at NEWSWEEK

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start-up, product development, and product evolution stages. PS

India leaves crypto and stablecoins at the door in fintech jamboree

MUMBAI (Reuters) -At the world's largest gathering for the financial technology sector in Mumbai this week, more than 800 speakers tip-toed around two topics that have captured attention globally: cryptocurrencies and stablecoins.

About 100,000 participants converged for the three-day conference starting October 7 in India's financial capital, headlined by the prime ministers of India and the United Kingdom, and drawing regulators, investors and industry executives from more than 100 countries.

The annual conference kicked off just as bitcoin catapulted to an all-time high above $125,000 but that milestone found no mention at the conference on the back of India's regulatory caution around the sector.

India is leaning towards not creating legislation to regulate the sector, Reuters reported last month.

Read more at REUTERS

Visa Tests Stablecoin Pilot to Modernize Cross-Border Payments

Visa’s new stablecoin pilot lets businesses fund cross-border payments digitally, aiming to reduce idle capital and speed up settlements.

Visa Moves to Redefine Global Transactions

Visa Inc. has launched a pilot program allowing businesses to fund international payments with stablecoins instead of pre-depositing cash in foreign bank accounts — a move that could reshape how global commerce operates.

Announced on September 30, the initiative is designed to test whether digital tokens pegged to fiat currencies can eliminate the need for companies to hold reserves across multiple countries. For firms that tie up millions of dollars just to keep cross-border operations running smoothly, Visa’s pilot offers an alternative to the inefficiencies built into today’s international payment system.

The announcement marks one of Visa’s most ambitious experiments yet in integrating digital assets into mainstream finance — a shift made possible by a major regulatory milestone in the United States.

Read more at Fintech Weekly

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Survey: Most people want financial education taught as ‘core’ course in school

More than three in four U.S. adults believe that financial education should be part of the “core curriculum” taught in high school, according to a new survey by the National Endowment for Financial Education. The survey also found that many adults believe their quality of life would have been better had such subjects been offered in school.

Respondents were asked which subjects should be part of a high school core curriculum to set students up for success. Seventy-six percent said economic/personal financial education, followed by mathematics (75%), English/language arts (73%), social studies (64%), science (63%) and computer science/digital literacy (58%).

Among respondents who did not have the opportunity to take a personal finance course in school, 70% believe their financial lives would have been better if they had. Eight-six percent of respondents who reported taking a full semester personal finance course or training said they considered it “somewhat” (22%) or “very” (64%) valuable. Only 76% of those who took a few weeks or took several lessons, and 71% who took a single workshop or class, responded similarly.

Read more at ABA Banking Journal

Equifax Responds To Credit Scoring Market Disruption

As a counterpunch to moves by competitors, changes to VantageScore 4.0 pricing seek to reduce costs for lenders and homebuyers

Equifax has announced a move to reduce mortgage costs for American homebuyers and the mortgage industry. The credit reporting agency has announced it will be offering VantageScore 4.0 mortgage credit scores at more than a 50% reduction from FICO 2026 prices (or $4.50) through the end of 2027.

In addition, Equifax will be offering free VantageScore 4.0 credit scores to all Equifax customers in mortgage, automotive, card, and consumer finance who purchase FICO scores for the remainder of 2025 and throughout 2026.

"Equifax plays an essential role in the financial lives of consumers and the mortgage industry, and we take that responsibility very seriously — particularly in the most challenging mortgage and housing market in 20 years.

Read more at NationalMortgageProfessional.com

What good looks like in Small Business Lending – and how to get there

Small businesses are more than a market segment—they’re engines for growth for local economies. They create jobs, fuel innovation, and often serve as a backbone for their communities. Yet access to capital remains a persistent challenge, and historically banks have struggled to serve this segment profitably.

For banks, the hurdles are familiar. Small business lending often falls somewhere between retail and commercial banking, which can create fragmented service models and inconsistent customer experiences. Loans tend to be smaller in value yet burdened with the same complexities as larger corporate deals, making them difficult to process profitably. Meanwhile, small business owners expect the same speed and convenience they’ve grown accustomed to in their personal financial lives—along with the guidance of trusted advisors. Meeting those expectations is not an easy task.

The landscape, however, is changing. Digitization and automation are reducing manual steps and freeing bankers to focus on building relationships. Risk-based pricing is replacing one-size-fits-all models with tailored solutions that strengthen both competitiveness and profitability.

Read more at ABA Banking Journal

ABA’s Treasury check verification tool allows banks to report counterfeit checks

Banks using the American Banker Association’s online tool to access the Treasury Check Verification System will be able to report counterfeit checks through the tool starting Wednesday, according to Paul Benda, ABA EVP for Risk, Fraud and Cybersecurity.

Benda announced the new feature at the Financial Crimes Enforcement Conference, which is taking place this week in Arlington, Virginia. ABA launched the tool in June, allowing member banks to access the Treasury Department’s TCVS at no cost. Since then, the tool has processed more than $600 million in Treasury checks.

The new reporting system will allow ABA to collect real-time information on counterfeiting, Benda said.

“We’re not tracking it by bank. We’re not tracking it by payee names. We’re not capturing any information like that,” he said. “We’re simply capturing the fact that this is occurring.”

Read more at ABA Banking Journal

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5 fintech trends reshaping financial services

From real-time payments to AI-powered compliance, these five trends are redefining how financial technology is transforming the way we pay.

FinTech innovation is accelerating rapidly, reshaping how money moves across borders, platforms and communities. From real-time transactions to AI-powered fraud prevention, these advancements are making banking more seamless and accessible than ever before.

Here are five of the latest trends driving the future of financial services – and redefining what’s possible in the digital economy.

Demand is rising for real-time payments and multi-method transactions

Payments remain a central focus for fintech innovation, driven by demand for real-time processing and integration across platforms. Businesses are increasingly adopting payment solutions that enable instant transactions, while cross-border payments can also be processed in real time, allowing global clients to transact efficiently while remaining compliant with local regulations. These advancements are supported by user-friendly interfaces and AI-powered tools that enhance accuracy and speed.

Read more at CFC.COM

NFIB: Small-business optimism falls but remains above average

The NFIB Small Business Optimism Index declined two points in September to 98.8, according to the National Federation of Independent Business. The drop marked the first decline in three months, though the index remains above the survey’s 52-year average of 98. The uncertainty index rose seven points from August to 100, the fourth-highest reading in more than 51 years.

Supply chain and inflation issues stood out as a key problem in the report, NFIB said. The net percent of owners raising average selling prices rose a seasonally adjusted three points from August to a net 24%. A net 31% plan to increase prices over the next three months, up five points from August.

Fourteen percent of owners reported that inflation was their single most important problem in operating their business, up three points from August.

Read more at ABA Banking Journal

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Remember compliance obligations when dealing with stablecoins: ABA Experts

As banks explore stablecoins, they must keep in mind that Bank Secrecy Act and sanctions rules still apply, and that should guide their relationships with third parties that provide stablecoin services, according to American Bankers Association SVP and Counsel Heather Trew.

Trew and ABA SVP for Innovation and Strategy Brooke Ybarra discussed the implications of the recently enacted Genius Act for anti-money laundering compliance during the Financial Crimes Enforcement Conference, which is taking place this week in Arlington, Virginia. The Genius Act created a regulatory framework for payment stablecoins, allowing banks to issue the digital currency and provide services to other stablecoin issuers.

In terms of compliance, it does not matter whether banks are dealing with stablecoins or another form of payment, Trew said. “It means that if you’re going to contract with a third party, if you’re going to get into some kind of a relationship with a digital asset service provider, you need to understand how they operate, how they are responsible and what they are doing to meet these obligations.”

Read more at ABA Banking Journal

Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can Cope

Significant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.

Tariff concerns are looming over small businesses, but their ripple effect goes beyond balance sheets.

As strategies unravel and survival mode sets in, the true crisis isn't just financial — it's emotional. And it's a threat to the leadership structures for small businesses if left unmanaged.

In today's economic environment, small business leaders are carrying the weight of constant disruption; if left unattended, organizations risk more than profit loss — they risk leadership collapse.

Read more at KIPLINGER

4 Timeless Money Tips That Will Always Hold Up

New technologies such as artificial intelligence, cryptocurrency and fintech tools can make it seem like the way to approach your finances should change. However, at its core, there are some financial principles that stand the test of time. Applying these four timeless money tips will help you build good habits and prepare for a long and successful financial future.

Pay Yourself First

You have control of where your money goes, and paying yourself is the best way to prioritize your financial health and future. When you receive a paycheck, your first thoughts might be to go out to eat, upgrade your phone or buy groceries. However, the habit of paying yourself first will pay dividends down the road.

In practice, this means automating transfers from your bank account so a portion of your income goes directly to savings and retirement funds before you spend any of the money. Once you’ve taken money out for yourself and your long-term financial health, you can decide how to spend the rest.

Read more at GOBankingRates.com

Change is coming for compliance regulation

“Change is in the air” with respect to federal banking regulation, and that change has been overwhelmingly positive, American Bankers Association President and CEO Rob Nichols told attendees today at the Financial Crimes Enforcement Conference in Arlington, Virginia.

Bankers from across the nation gathered at the conference for three days of sessions and networking on key compliance topics, ranging from anti-money laundering enforcement reform to a new law on stablecoins. Nichols kicked off the event with an overview of the policy outlook for the banking sector with respect to financial crime and compliance.

“One year ago, we were caught up in what I called the regulatory tsunami, ABA had several legal challenges in play, and we were dealing with a slew of new rules and guidance that, quite frankly, were not supporting banks to serve their customers, clients and communities,” Nichols said.

Today, leadership at banking agencies “fully appreciate and understand” how banks work, he said. “They understand the pain points, and they are deeply invested in creating a regulatory framework that is appropriately tailored and ensures that banks’ compliance resources are being used efficiently and effectively.”

Read more at ABA Banking Journal