Global fintech and funding innovation ecosystem

FinTech Charter Hits Speed Bump

PYMNTS | May 6, 2019

Fintech 2 - FinTech Charter Hits Speed BumpThe suit can proceed.

The news came Thursday (May 2) that, per a ruling in federal court in New York, the State Department of Financial Services can move forward with a suit that looks to derail national bank charters for FinTech companies.

Judge Victor Marrero, presiding over the U.S. District Court for the Southern District of New York, said the case can proceed, a ruling that denied a dismissal of the suit requested by the Office of the Comptroller of the Currency (OCC).

The New York department had argued that the OCC had stepped beyond its regulatory authority (and is misinterpreting the National Bank Act) when it had offered the “special purpose” charter in the middle of last year.

The judge ruled that “such dramatic disruption of federal state relationships in the banking industry occasioned by a federal regulatory agency lends weight to the argument that it represents exercise of authority that exceeds what Congress may have contemplated in passing the NBA

. Indeed, if DFS’ characterization of the impact is accurate – which the Court assumes, given the posture of this order … the OCC’s reading is not so much an ‘interpretation’ as ‘a fundamental revision’ of the NBA.”

See:  Tech’s raid on the banks

The national licenses would let FinTechs lend money and paychecks to consumers.

Separately, in news germane to the OCC, it has opened up a 45-day public comment period on a proposed Innovation Pilot Program encouraging banks to participate in pilots spanning as long as 24 months. It would allow banks to offer regulatory impact on innovations that include some tech-driven initiatives. The pilot program is distinct from a sandbox approach, where pilots tied to innovation get regulatory waivers.

Separately, the Reserve Bank of India late last week said it has fined Yes Bank as much as 11.25 lakh (roughly $1.6 million USD) as a penalty under the Payment and Settlement Systems Act of 2007. The penalty was levied in the wake of violations that involved the “issuance and operation of prepaid payment instruments in connection with certain product features of an open loop prepaid card (co-branded) previously issued by the bank,” according to Yes Bank. The prepaid product had been launched as a pilot program in September of 2017 and was discontinued in March of last year.

Continue to the full article --> here


NCFA Jan 2018 resize - FinTech Charter Hits Speed Bump The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - FinTech Charter Hits Speed BumpFF Logo 400 v3 - FinTech Charter Hits Speed Bumpcommunity social impact - FinTech Charter Hits Speed Bump

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - FinTech Charter Hits Speed Bump




Funding | Jul 23, 2024 Canadian ventures Cohere and Clio secure series D and series F respectively, reaching new valuations Canadian startups, Cohere and Clio, are making headlines this week by announcing major fundraising rounds, showcasing the potential and strength of Canada's innovation economy and technology sector. See:  Generative AI Myths That Founders Should Know Cohere $500 million Series D Cohere, a Toronto-based AI startup, raised $500 million in a Series D round, bringing its total valuation to $5.5 billion.  PSP Investments led the fundraising round, including participation from Cisco, Fujitsu, AMD Ventures, and Export Development Canada (EDC). Cohere specializes in large language models for enterprise applications, with key clients including Notion Labs and Oracle. Aidan Gomez, Nick Frosst, and Ivan Zhang founded Cohere in 2019 with the goal of developing practical AI solutions rather than researching artificial general intelligence. Clio $900 million Series F Clio, a Vancouver-based legal technology business, secured $900 million in a Series F round, bringing its valuation to $3 billion. New Enterprise Associates led the round, which included major investments from Goldman Sachs Asset Management, Sixth Street Growth, CapitalG, and Tidemark. Clio provides software that automates legal operations such as client intake and document management, ...
Freepik storyset funding - FinTech Charter Hits Speed Bump
Leadership | Jul 23, 2024 "I have not failed. I've just found 10,000 ways that won't work." – Thomas Edison Failure contains perhaps the greatest insights for future success (assuming one is willing to learn from it!). While there are a myriad of pitfalls to avoid as an entrepreneur (or investor), below we look at 5 case studies with insightful lessons to learn about dependence management, market adaptation, regulatory compliance, and other topics from companies such as Plastiq, Nuri, CommonBond, LendUp, and Bank North, in hopes to avoid similar reoccurring problems in your fintech future. 1. Plastiq Founded: 2012, Failed: 2023, Country of Origin: United States, Key Founder: Eliot Buchanan What It Did: Plastiq offered a service that allowed users to pay bills that were previously unpayable with a credit card. Why It Failed: The collapse of Silicon Valley Bank, a major partner, as well as rising interest rates and operating difficulties, contributed to its demise. Lessons: Dependency Management --> Reduce reliance on single partners can reduce the risks associated with potential failures. Interest rate sensitivity --> Develop measures to deal with interest rate swings can help ensure financial stability. 2. Nuri (formerly Bitwala) Founded: 2015, Failed: 2022, Country of ...
Freepik rawpixel.com failure - FinTech Charter Hits Speed Bump
Investing | Jul 23, 2024 SEC Approves Spot Ether ETFs to Kickstart a New Era for Crypto Investments The US Securities and Exchange Commission (SEC) has approved multiple spot Ethereum (ETH) exchange-traded funds (ETFs) to begin trading today, marking a watershed moment and regulated channel for investors to obtain exposure to the second-largest cryptocurrency by market capitalization. Specifically, the SEC has approved asset managers such as Grayscale, VanEck, BlackRock, Fidelity, Bitwise, Franklin Templeton, Invesco, and 21Shares. This move is expected to democratize access to Ethereum, allowing institutional and individual investors to participate in its growth without having to physically purchase and manage the cryptocurrency themselves. Why Invest in Spot Ether ETFs? With all the hubbub made over the approval of a spot Bitcoin ETF in Q1, why might investors choose to invest in a spot Ether ETF instead? Simply put, investors should consider diversification. Ethereum provides a different value proposition than Bitcoin. While Bitcoin is often referred to as "digital gold," Ethereum is considered as a platform for decentralized applications (dApps) and smart contracts, offering a wide range of use cases beyond just a store of wealth. The Ethereum network is being constantly upgraded, such as the transition to Ethereum ...
Pixabay elifxlite Ethereum - FinTech Charter Hits Speed Bump
Digital Services Taxes | Jul 22, 2024 What You Need to Know About Canada's New 3% Digital Services Tax (DST) Canada has adopted a new Digital Services Tax (DST), which imposes a 3% tax on digital services revenue retroactively to January 1, 2022. This tax is intended to collect revenue from the expanding digital economy and targets multinational corporations that benefit considerably from Canadian markets. This action aligns Canada with other countries, such as France and the UK, that have implemented comparable taxes to remedy gaps in the international tax framework. Deputy Prime Minister and Finance Minister Chrystia Freeland to CBC News: "Its simply not reasonable, not fair, for Canada to indefinitely put our own measures on hold," she said. "A number of other countries have a DST in place right now, and they have had a DST in place for a number of years with no retaliation [from the U.S.]." See:  Canada’s Capital Gains Tax Hike Moves Forward Katherine Cuplinskas, Freeland's press secretary to CBC News: Canada strongly supports international efforts to end the corporate tax race to the bottom and to ensure that all corporations, including the world's largest corporations, pay their fair share," Key Aspects, Scope, and ...
Freepik studiogstock taxes - FinTech Charter Hits Speed Bump
Regulation | Jul 22, 2024 CFPB Proposes New Earned Wage Access Rules and Implications for Canadian Stakeholders The Consumer Financial Protection Bureau (CFPB) of the United States has issued new interpretive regulations for Earned Wage Access (EWA) providers. These policies are intended to improve openness and consumer protection in the financial sector. While the new rules are U.S.-specific, there are implications for Canadian stakeholders. EWA Demand and Regulatory Concerns The demand for EWA products has grown rapidly due to the rising cost of living, inflation, and financial stress. See:  Redefining Payday: Earned Wage Access (EWA) Insights from Harvard Study EWA services are either managed directly via an employer's payroll system, which allows employees early access to a portion of their earned wages prior to payday.  EWA can also be managed through a third party app or online service (EWA provider), such as AnyDay in Canada, or Payactiv in the U.S. Over 60% of U.S. workers are living paycheck to paycheck. In Canada, 47% are living from paycheck to paycheck and managing significant debt.  A survey by the Federal Reserve Bank of Kansas City found that transaction fees for EWA services can result in annualized APRs of up to 331%, highlighting ...
Freepik pvproductions EWA - FinTech Charter Hits Speed Bump
Jul 19, 2024 We live in a world of dazzling technology where one single computer, used the right way, can launch a business or start a global conversation. The online digital world is a dynamic place. However, modern audio-visual equipment can make the offline world just as exciting, too! Thankfully, the right equipment can empower smaller organizations to throw unforgettable events that stay with attendees long after they’re over. Please read on to learn more. Lighting Matters When an event is lit properly, guests feel more at ease and even excited by being present. The right type of lighting elevates their mood and makes an event feel significant. Leaders like Toronto Audio Visual Rentals offer all the choices you could ever need, from LED lighting, colourful wall washes, podium spotlights, and an array of options to pump up any dance floor. Whether your event is a staid affair where speakers host a question-and-answer session or a fun, laid-back networking event with drinks, the lighting really sets the mood. Sound is More Than Just Hearing Like lighting, sound quality also matters more than you may think. There’s a difference between hearing a speech or music and hearing it. The words need ...
Pexels Roman Pohorecki Event AV - FinTech Charter Hits Speed Bump
Report | Jul 19, 2024 CB Insights Report for Global Fintech Overview Q2 2024 CB Insights Global Fintech Q2 Report recently dropped.  Global fintech funding increased to $8.9 billion in Q2 2024, up 19% from the previous quarter, mostly due to two large deals: $694 million from Stripe and $650 million from AlphaSense. Having said that, the total number of deals fell by 16% in spite of this increase, suggesting investor caution. Deals for companies in the middle and later stages made up 20% of the total, up from 18% in 2023 (especially in payments and lending). See:  Fintech in 2024: Growth, Challenges, and Opportunities While the median deal size increased to $4 million, the average deal size decreased somewhat to $12.8 million. Significant investment poured into digital asset firms, as the crypto winter thaws and trump trade grows, which accounted for 30% of the best early-stage deals. With a 45% increase in investment to $4.8 billion, the US took the lead, while aid to Latin America increased by 22% to $442 million. Regional Comparisons The US led global fintech funding with $4.8 billion, marking a 45% increase. The US accounted for 40% of equity deals and 36% of exits ...
CB Insights Global Fintech Q2 2024 - FinTech Charter Hits Speed Bump
Banking Innovation | Jul 19, 2024 NatWest Launches Retail Banking App on Apple Vision Pro As reported by Finextra, NatWest has made the bold move of launching its latest retail banking app on Apple's Vision Pro, an innovative mixed-reality headset and are one of the first banks to do so.  By utilizing the immersive qualities of augmented reality, they hope to completely transform the way that consumers interact with their accounts and offer a more engaging, personalized and interactive, hands-free, banking experience with the latest biometric security technologies. See:  Unveiling Apple Vision Pro: A Leap in Spatial Computing Wendy Redshaw, Chief Digital Information Officer at NatWest: “It’s great to be a first-mover with such exciting new technology. It will be interesting to take learnings, understanding how customers use the app in this new technology to deal with their finances, and to understand how we can create bespoke propositions to serve them even better. It’s just one insight into how the future of banking could look in the future - watch this space.” Do Retail Customers Really Need Mixed-Reality Banking Apps? While traditional retail clients may not "need" mixed-reality banking apps, these apps offer considerable advantages that can improve their experience ...
Freepik rawpixel.com VR headset - FinTech Charter Hits Speed Bump
Jul 19, 2024 In today's rapidly evolving world, sustainability is not just a trend—it's a necessity. With the growing awareness of environmental issues among homeowners, there has been a significant increase in the demand for eco-friendly plumbing solutions. If you're considering making your home greener, consulting a knowledgeable plumber about sustainable plumbing innovations is a great place to start. Here, we explore some of the most exciting eco-friendly plumbing innovations transforming homes and promoting sustainable living. Low-Flow Fixtures Installing low-flow fixtures like faucets, showerheads, and toilets represents a straightforward yet incredibly effective eco-friendly improvement in plumbing. These fixtures consume less water, significantly lowering your home's water usage. A plumber can assist you in selecting and installing these fixtures, ensuring they maintain adequate water pressure while conserving water and lowering your utility bills. Tankless Water Heaters Traditional water heaters operate by continuously heating and reheating water, resulting in considerable energy inefficiency. In contrast, tankless water heaters heat water only when required, providing hot water instantly when needed. This innovation reduces energy consumption and saves space in your home. Consulting with a plumber can help you select the optimal tankless water heater tailored to your home's particular requirements. Greywater Recycling Systems Greywater ...
Freepik Sustainable home plumbing - FinTech Charter Hits Speed Bump
Launch Release | Jul 18, 2024 A New Equity Crowdfunding Portal Dedicated to Servicing Albertan Small Businesses has Launched July 17, 2024, Calgary AB - A new equity crowdfunding portal, Go Alberta, has announced it's launch, and is aimed at helping Alberta's small businesses. Throughout the province, small and medium-sized businesses (SMEs) will be able to access a community-driven finance solution.  Go Alberta's goal is to empower local companies by introducing them to a variety of investors so they can raise the capital they require to expand and prosper. By democratizing investment options, this platform enables regular Albertans to contribute to and profit from the success of regional businesses. See:  Equity Crowdfunding Demystified: Insights from Wefunder and Equivesto There are numerous of benefits to raising an equity crowdfunding campaign, such as: Offers an innovative and accessible way for companies to obtain capital, particularly those that are having trouble obtaining traditional finance. Gives Albertans the opportunity to support via investment the economic development of their local communities. Investors benefit when the companies they support develop and succeed, fostering a win-win situation in support of local economies. Equity Crowdfunding Regulations In Alberta and across Canada, equity or investment crowdfunding is governed by ...
GO Alberta equity crowdfunding portal - FinTech Charter Hits Speed Bump

 

Leave a Reply

Your email address will not be published. Required fields are marked *

12 + ten =