Welcome to Innovating Payments Top 3 News Headlines for the week of Oct. 7, 2024. In this issue, Fiserv receives a special banking charter in Georgia that allows direct access to card networks. It will no longer need to partner with banks to process credit card transactions. In other news, Payments Journal suggests that earned wage access (EWA), which allows employees to access their earned pay before their traditional payday, could be a key driver in instant payment adoption. Finally, the Consumer Financial Protection Bureau (CFPB) is expected to issue a final open banking rule establishing personal financial data rights this fall, culminating more than a decade-long process under Section 1033 of the Dodd-Frank Act.
Read on to learn more.
1. Fiserv Nets Special Banking Charter in Georgia (Payments Dive)
Fiserv's application for a special banking charter in the state of Georgia has been approved, the Georgia Department of Banking and Finance said in a financial bulletin released Friday morning. The Brookfield, Wisconsin-based payments company will now have direct access to card networks, and will no longer need to partner with banks to process credit card transactions. The state's bulletin said it approved the charter on Sept. 27. (Read more.)
2. What Will Drive Instant Payment Adoption? (Payments Journal)
Most experts agree that instant payments will eventually become commonplace in the United States. But what will drive that shift? It could well be earned wage access (EWA), which allows employees to access their earned pay before their traditional payday. Payments experts widely agree that this is not only the use case most likely to be adopted soon-within the next year-but also the one with the broadest reach and greatest benefit. (Read more.)
3. Looking Ahead to the Final Open Banking Rule: Key Issues to Watch (Financial Technology Association)
This fall, the Consumer Financial Protection Bureau (CFPB) is expected to issue a final open banking rule establishing personal financial data rights, culminating more than a decade-long process under Section 1033 of the Dodd-Frank Act. The landmark open banking rule could accelerate competition and choice by empowering consumers with greater control of their personal financial data. Open banking underpins financial innovations that benefit consumers, from faster payments to expanded access to credit and more convenient, tailored tools to budget, save, invest, or manage money. (Read more.)
Does the approval of Fiserv's application for a unique banking charter in the State of Georgia bring specific questions or concerns to the forefront for your financial institution? Do you agree or disagree that Earned Wage Access (EWA) could be a key driver in instant payments adoption? What impact might CFPB's final open banking rule establishing personal financial data rights have on financial institutions?
Check back soon for our next issue, which will highlight the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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