February 27, 2020
AFSPA Partner


Trust and payments should go hand-in-hand.

Morgan Stanley to buy E*Trade for $13B in largest bank takeover since financial crisis
  • Morgan Stanley is acquiring brokerage firm E*Trade in an all-stock transaction valued at around $13 billion, the two companies announced Thursday.
  • The deal, expected to close in the fourth quarter of 2020, is the largest deal by a major Wall Street bank since the 2007-08 financial crisis. E*Trade has over 5.2 million client accounts with over $360 billion of retail client assets, adding to Morgan Stanley's existing 3 million client relationships and $2.7 trillion of client assets, the companies said in a release.
  • "E*TRADE represents an extraordinary growth opportunity for our Wealth Management business and a leap forward in our Wealth Management strategy," James Gorman, Morgan Stanley Chairman and CEO said in a statement. "The combination adds an iconic brand in the direct-to-consumer channel to our leading advisor-driven model, while also creating a premier Workplace Wealth provider for corporations and their employees."

Read more at BANKINGDIVE

AFSPA Partner


96% of borrowers find small-dollar loans useful.

Banks closed 3,164 branches last year, opened 1,500

  • Bank branch consolidation is continuing at a significant pace, mainly as the country's largest banks downsize their real estate footprint, but community and regional banks are taking up some of the slack with pushes into new areas, according to the 2020 branch banking report by commercial real estate company JLL.
  • Banks closed 3,164 branches last year, bringing the total loss of branches to about 13,200 since the industry hit its peak in 2009 at about 100,000 branches, according to the report.
  • Christian Beaudoin and Walter Bialas, the two JLL analysts who oversaw the research, say the industry will likely continue to consolidate branches at a rate of about 2% a year because reduced space is part of banks' efforts to "integrate physical branches with digital platforms."

Read more at BANKING DIVE


ALABAMA: Payday loan bill dies, but issue not dead

Last year, 189,231 Alabamians took out 1.6 million payday loans worth about $563.6 million from lenders in the state. They paid about $98.4 million in fees, according to a database kept by the Alabama Department of Banking.

"It's absolutely massive," Dev Wakeley, a policy analyst for the progressive advocacy group Alabama Arise, said recently about the fees paid by borrowers.

"All this money is getting syphoned out of communities and most of it goes out of state."

Payday lending reform, specifically the fees allowed to be charged to borrowers, has become a perennial issue in the Alabama State House. A bill by Sen. Arthur Orr, R-Decatur, to give borrowers up to 30 days to repay the money instead of what can be 10 to 20 days, was killed earlier this month on an 8-6 vote in the Senate Banking and Insurance Committee.
Read more at 6WBRC


National Debt Holdings
Jeremy Poehler
Meet Jeremy Poehler, CEO at National Debt Holdings

Experienced receivables management professional with a demonstrated history of adding value to account portfolios. Leading a company focused on providing creditors with a reliable outlet for the acquisition and recovery of receivables portfolios. Skilled in business planning, operations and transaction management

National Debt Holdings is a receivables management firm assisting creditors with improving their cash flow performance from their account portfolios. Our team understands the balance needed to successfully recover accounts receivable while protecting the brand and reputation of our creditor partners.

Headquartered in Miami, FL our team of professional recovery experts have developed deep relationships with creditors and service providers, giving us a unique perspective on how to create success for everyone involved.
National Debt Holdings

Dreher Tomkies LLP

Director Kraninger's Remarks at the Credit Union National Association Government Affairs Conference

I'm thrilled for the invitation to address members of the Credit Union National Association. Since becoming Director in December 2018, I have appreciated the cooperative relationship the Bureau has with CUNA. Thanks to Jim Nussle and the staff who provide great insights into the issues you are all confronting.

Today, I would like to discuss the role of the Bureau in the consumer financial marketplace and how we prevent consumer harm by establishing clear rules of the road. This promotes competition, increases transparency, protects consumers, and preserves fair markets for financial products and services. Specifically, I would like to share with you our approach to reviewing regulations to ensure they are effective. And, lastly, I will discuss our Start Small, Save Up initiative that promotes emergency savings for consumers.
Consumer Financial Protection Bureau



MaxDecisions Delivers 4% Response Rate In Direct Mail Campaign.

MaxDecicisons is a leader in analytics and predictive modeling, today announced an industry first, unparalleled direct mail response result with 4% response rate with its newest subprime lending client.

"We are excited to announce our new partnership with a mid-size subprime lender to produce unparalleled results in direct mail marketing." said Timothy Li, Founder of MaxDecisions. "We are constantly striving for analytical excellence in the areas of risk and response modeling for all online finance clients. Our unique approach to each of our clients is a complete and custom solution from letter design to list selection. Every one of our clients is now enjoying multiple generations of direct mail custom risk and response models ."

MaxDecisions, Inc. was able to turn around this important marketing channel for our clients and delivered 20X increase in performance. Our client is ecstatic to continue to support this marketing channel moving forward. Direct Mail has become an important strategic customer acquisition channel for our client. Below is an illustration of prior direct mail campaigns before MaxDecisions applied its analytical services and after with June 2017 campaign performance.
Read more at MaxDecisions


Banks generated $233.1B in net income last year, down 1.5%

  • The country's 5,177 federally insured banks generated $233.1 billion in net income last year, down 1.5% from the previous year, the Federal Deposit Insurance Corp. (FDIC) reported this week.
  • Net interest margin also declined from a year ago, to 3.3%.
  • 51 institutions were listed on the FDIC's problem bank list, down from 55.
"The banking industry remains strong, despite declines in full-year and quarterly net income," FDIC chair Jelena McWilliams said. "Loan balances continue to rise, asset quality indicators are stable, and the number of 'problem banks' remains low."

The performance of community banks - those with assets of up to $10 billion, generally - continues to be particularly strong, the FDIC data show.



              Transform Your Business with Data and Payment Instruments from ValidiFI

The rise of fintech technologies, now, more than ever is affecting consumer behaviors. Today, consumers possess multiple bank accounts, utilizing a wide array of payment instruments and high frequency usage of debit cards, (especially virtual, private labeled, and those linked to rewards). This behavior adds a layer of complexity to the measurement and management of risks associated with extending credit and issuing financial services. Additionally, the successful collection of funds, due to regulatory changes and the aforementioned consumer behavior, has become increasingly difficult to automate and manage for many businesses. The two factors contributing to the remediation of this problem, have long been utilized separately, data and payment instruments (bank accounts and debit cards). ValidiFI has developed a disruptive technology, the Payment Risk Optimizer (PRO) platform, that leverages data and payment instruments for the purposes of improving payment processing success rates, efficiency and compliance.

Data and Payment Instruments Improve Payment Processing
Historically, data and payment instruments have worked side-by-side for the purpose of fraud and marketing, but not for processing a payment successfully. In the past ACH has been blind to whether it will be successful, but with the advent of ValidiFI's technology and same day ACH there are new and innovative ways to process payments. "We can now essentially process an ACH like a debit card", says Jesse Berger, COO at ValidiFI.
Read more at ValidiFI



CFPB Symposium: Consumer Access to Financial Records

We held a symposium on consumer-authorized data access and Section 1033 of the Dodd-Frank Act, featuring remarks from Bureau Director Kathleen Kraninger. The Bureau faces several important policy decisions in the coming years and the symposia series established by Director Kraninger aims to stimulate a robust and proactive dialogue to assist the Bureau in its policy development process. Through the symposia series, the Bureau seeks feedback from a variety of fields and backgrounds to consider legal and policy issues.

Consumer Financial Protection Bureau


Fifth Third Links Rejected Business Borrowers To Alt-Lender

To offer expanded services as it pursues a digital innovation strategy of harnessing partnerships to provide an enhanced customer experience, Fifth Third is teaming with Fundation for small business loans. Fundation will provide its products to customers that don't meet the loan eligibility guidelines of Fifth Third, which will aid the bank meet more of the credit needs of its small business clients, according to reports.

Fundation CEO Sam Graziano said, according to reports, "At Fundation, our mission is to enable our banking clients to give their small business customers the best of both worlds - great products at great prices along with the modernized experience they expect in the digital era."

Graziano continued, "This collaboration does exactly that. The combination of Fifth Third Bank's renowned brand, customer reach and great products with our digital lending platform will allow us to collectively serve the Bank's customers with best-in-class products and a best-in-class customer experience."
Read more at PYMNTS.COM


RBC to launch U.S. consumer bank betting on wealthy clients

(Reuters) - Royal Bank of Canada plans to open a consumer bank in the United States early next year targeting wealthy clients, with the aim of expanding deposits, its chief financial officer told Reuters on Friday after the bank posted first-quarter profit that beat expectations.

"We want to broaden the product and service offering that we have (in the U.S.), similar to what we have in Canada," CFO Rod Bolger said. RBC's consumer bank would initially focus on high-net-worth clients in U.S. but eventually target the "mass affluent" as well, he said.

With this strategy, RBC is joining U.S. rivals including Bank of America, which are expanding their private banking arms.

RBC's U.S. business, including City National bank, which it acquired in 2015, accounts for 23% of total revenue. Read more at REUTERS


1 Payday Loan Store: San Diego area
Owner Retiring. Will accept $20,000 TOTAL


Alternative Financial Service Providers Association

315 Tuscarora St., Lewiston, NY 14092