Consumers Will Drive Open Banking, Not Regulators

Momentum is building for U.S. financial services to operate on "open banking" principles, in which consumers control directly how their financial data is used. Yes, the government is poised to enforce new rules, but the decisive demand is coming from the marketplace. Banks need to respond.

Does the United States lag behind in the race toward “open banking”?

“Open banking” is an umbrella term to describe the idea that sharing anonymized financial data between institutions can lead to innovation and new financial products and services, and that consumers should have the ability to move their data freely from one institution to the next.

For years, the United Kingdom and Europe have mandated that banks share data, creating a longstanding perception that the U.S. is falling behind. A 2021 McKinsey report, for example, found that the U.K. was far outpacing the rest of the world in regulating third parties to provide open banking data. Moreover, some of America’s largest banks have lobbied against the idea of opening up their data.

Read more at The Financial Brand

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

As a taxpayer, it is important to know your rights when interacting with the IRS. The IRS has a set of fundamental rights that every taxpayer should be aware of. These rights are designed to protect you and ensure that you are treated fairly.

The Taxpayer Bill of Rights outlines these rights and our obligations to protect them. The benefits of knowing your rights include:

•  Peace of mind:  Knowing your rights can help you feel more confident and secure when dealing with the IRS.
• ·    Protection: The Taxpayer Bill of Rights ensures that you are treated fairly and that your rights are protected.
• ·    Empowerment:   Understanding your rights can help you make informed decisions and take control of your tax situation.
• ·    Transparency: The IRS is required to explain your rights and how they apply to your situation.

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Beware of new CFPB imposter scams: CFPB

This week, we confirmed that scammers are using CFPB employees’ names to try to defraud members of the public. We’ve heard from people, specifically older adults, who received phone or video calls.

We can’t say it enough – the CFPB will NEVER contact you and ask you for sensitive information or to pay money. This includes never asking you to pay an upfront fee or taxes, or telling you that you’ve won a lottery, sweepstakes, or class-action lawsuit. We also won’t ask you for personal or sensitive information before you can cash a check we’ve issued.

The latest phone and video scams may include:

• A phone or video call or an email from an imposter claiming to be a CFPB or other U.S. government official
• Messages or calls notifying you of an opportunity to participate in a class-action lawsuit, or that you’ve won a lawsuit or owe money you didn’t expect.
• Being told you must first pay taxes or another upfront fee to collect the money. They may continue to find “reasons” for you to pay more fees or taxes. It is all part of the scam.

If you’re contacted by someone from the CFPB and want to confirm whether it’s real or a scam, call our consumer call center at (855) 411-2372 between 8 a.m. and 8 p.m. ET, Monday through Friday.

Read more at Consumer Financial Protection Bureau (CFPB)

Overdraft fees could drop to as low as $3 under new Biden proposal

NEW YORK (AP) — The cost to overdraw a bank account could drop to as little as $3 under a proposal announced by the White House, the latest effort by the Biden administration to combat fees it says pose an unnecessary burden on American consumers, particularly those living paycheck to paycheck.

The change could potentially eliminate billions of dollars in fee revenue for the nation’s biggest banks, which were gearing up for a battle even before Wednesday's announcement. Exactly how much revenue depends on which version of the new regulation is adopted.

Banks charge a customer an overdraft fee if their bank account balance falls below zero. Overdraft started as a courtesy offered to some customers when paper checks used to take days to clear, but proliferated thanks to the growing popularity of debit cards.

Read more at AP

What’s next for cashless payments in self service?

A panel of self-service equipment providers covering a range of applications offered their takes on how they're meeting customer demands for expanding cashless payment options.

With point-of-sale mobile payments continuing to expand at a rapid pace, are self-serve equipment operators keeping up with what consumers are looking for?

A panel of self-service equipment providers covering a range of applications offered their takes on how they're meeting this challenge during the Self-Service Innovation Summit at the Loews Coral Gables in Miami.

The session was arranged in response to the projected growth of the global mobile payment market: a 14.3% combined annual growth rate through 2032, driven by the rising popularity of contactless payments and a surge in loyalty benefits within the mobile environment, according to Emergen Research.

Read more at KIOSKMARKETPLACE.COM

ANNOUNCING

MONEYTRENDS 2024

100 Things That Are (Mostly) True About Money

I’ve been thinking a lot lately about what I believe about money. What’s true about money? What are facts and what are ingrained beliefs that might need some examining. I’ve come up with a rough draft of 100 things that seem to be true about money. I’m going to spend some time this year reviewing this list and asking myself whether or not these things are true. 

20 Simple Facts That Seem True About Money

• Money is a medium of exchange used to facilitate transactions.
• It serves as a unit of account, therefore providing a standard measure of value.
• Money acts as a store of value, therefore allowing people to save wealth for future use.

Read more at SAVINGADVICE.COM

Banks Cannot Afford to Defer Technology Investment, Even in a Challenging 2024

Q&A: Faced with pressure on margins and loan portfolios, many banks will be tempted to rein in costs by postponing major new investments in technology in 2024. But Samlink's Pal Krogdahl argues that the gaps between customer-facing platforms and legacy backends cannot be papered over for much longer, and falling behind on "banking everywhere" will prove disastrous in the long run.

Seismic economic, competitive, and technological shifts will combine to create a uniquely disruptive environment for financial institutions. With change accelerating amidst uncertainty, how should banks chart their tech strategies in 2024 and beyond?

Pal Krogdahl, director of technology strategy and advisory services at digital banking platform provider Samlink, has navigated these digital transformation currents for over 20 years, advising financial firms globally.

In a wide-ranging discussion with host Jim Marous on the Banking Transformed podcast, Krogdahl unpacked his advice on how banks should defend and prioritize their projects for the coming year.

Read more at The Financial Brand

Unlock the Power of Speed: Instant Funding Solutions for Modern Lenders & High-Risk Borrowers

INNOVATIVE FUNDING METHODS FOR SUBPRIME CONSUMERS

In the evolving landscape of online lending, especially for subprime, credit-challenged consumers in the USA, it’s crucial to explore and implement versatile funding methods.

This blog post [signup for our free Newsletter] delves into various strategies to streamline financial transactions for these consumers once they qualify for small-dollar loans.

We’ll expand on some of the most effective techniques, such as debit card processing, PUSH/Instant funding, ACH payment processing, and Real-Time Payments (RTP).

UNDERSTANDING THE NEED FOR DIVERSE FUNDING METHODS

Before diving into the specifics, it’s essential to recognize why various funding methods are vital. Subprime borrowers often face limitations in traditional banking services, making accessibility and speed critical in improving their financial experiences.

Read more at TheBusinessOfLending.com

Financial wellness kiosk for veterans, families debuts at Syracuse University

Student veterans and military families can get financial assistance at a digital kiosk at Syracuse University's National Veterans Resource Center at the Daniel & Gayle D'Aniello Building on campus, according to WAER.

The financial assistance has been made possible by the Visions Federal Credit Union and the university's Office of Veteran and Military Affairs, Visions said in its announcement.

The kiosk seeks to provide support and guidance to the military community and includes financial-readiness modules, online resources and an events calendar.

Read more at KIOSKMARKETPLACE.COM