Global fintech and funding innovation ecosystem

Fintech Fridays Ep33: Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky

NCFA Canada | May 31, 2019

JOIN US ON A STORYTELLING JOURNEY EVERY FRIDAY.

FF EP33 Phillip Postrehovsky banner  - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky

Ep33-May 31:  Evolution of Consumer Lending and Financial Literacy

HOST: Manseeb Khan, Fintech Friday's show host

GUEST:  PHILLIP POSTREHOVSKY, SVP Marketing, Progressa (Linkedin)

BIO:  Philipp is a product visionary, brand builder and an award-winning marketer who has been involved in the Vancouver tech scene for over 15 years. In 2013 he co-founded RentMoola, which continues to be one of North America's leading fintech companies with the mission to eliminate the rent cheque and modernize rent collection for the enterprise. Before that, he was a brand leader for Mogo Technologies and Wonga Canada and began his career at Electronic Arts. He is the founder of Grind For Kids, a program that raised over $1 million for BC Children’s Hospital Foundation and sits on the Board of one of BC’s top independent schools.

About this episode: 

On this week's episode of NCFA's Fintech Friday Podcast, our host Manseeb Khan sits down with Philipp Postrehovsky the SVP of Marketing at Progressa. They chat about the results of Progressa's Annual State of the Non-Prime Canadian Consumers Survey, incorporating behavioural characteristics into underwriting decisions, helping borrowers become more financially literate and improve their credit scores.  Enjoy!

ProgressaLogo500 - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky

Subscribe and tune in each Friday to check out the latest movers and shakers in fintech.

Listen to more podcasts here: Season 1 | Season 2

 


Transcription of Interview

Intro: Welcome fintech Friday's a weekly podcast brought to you by the National Crowdfunding and Fintech Association of Canada and partners.Covering all things fintech block chain be AI and alternative finance.

Manseeb Khan: Hey everybody Manseeb Khan Thank you for tuning into another fantastical episode of The Fintech Friday podcast. Before we jump right into this week's episode huge shout out to the Toronto Raptors for winning the eastern championships as a kid that was born raised here in Toronto. This means the absolute world to me. And yeah having a Carter jersey from when I was a kid to now. This is this is incredible for the city; this is incredible Canada and hopefully we win the championships. If we do just a head up, I might take a break from the show so we might not even get an episode if we win which I think is understandable because it is going to be the first time in history that we've won. So that's just a heads up for everybody and a slight nod to my other Toronto raptor fans that are actually listening to the show. This week We're super excited to have Philipp Postrehovsky from Progressa. He's going to be the very first of many of reoccurring guests that we're going to be having. I'm not Phillip particularly but more so of the companies that we do have on the show. But hey maybe if maybe Phillip that would be really awesome. So, without any further ado Andrew episode 33 of the FinTech Friday podcast with Philipp Postrehovsky.

Manseeb Khan: Phillip thanks so much for sitting down with me today.

Philipp Postrehovsky: Thanks for having me. Appreciate it.

Manseeb Khan: Yeah. Oh, for sure. So, Phillip  our audience knows a little bit what Progressa is and honestly you guys are coming out with something. I think it's very exciting. You guys are coming up with Progressa's Annual State of the non-prime consumer study. Could you tell us a little bit about that and how you guys came when the formation of the study why you guys are coming out with this and yes give us a little bit of run out of this amazing study.

Philipp Postrehovsky: Sure yes. So, we wanted to get a sense of how Canadians are paycheck to paycheck Canadians are feeling about their personal finances and about the state of the economy and Canada as a whole. We surveyed our user base, or a subset of our user base and we got over 15 are close to fifteen hundred responses and got some great insights which I can share with you. But one of the big ones that I really jumped out at us is 76 percent up paycheck to paycheck Canadians lack confidence in their banks supporting them during financial difficulty. And that's really why Progressa exists so great to see that we are filling a need. Unfortunately, there is that need at least for filling it. So that was kind of a big one that came out in this and others that we can get into a little bit later.

Manseeb Khan: Yeah, I know that's very exciting. I mean the fact that now we have actually given me to study a little bit ahead of time so thank you for that. So, let's look at looking at some of the stats it's actually. It's shocking but not really surprising of how when it comes to lending, when it comes to you know Canadians being in debt and you know and dealing with their expenses like how kind of they're not using the bank is one of the options and they don't really know much about alternative lending. But even though they are using the banks they're not happily using the banks. That's probably one of the insights that I found. Huh interesting. I wonder how we can kind of you know help shift that.

Philipp Postrehovsky: Hmm. Yeah. So. So really the banks cater towards a customer that fits a certain credit risk right. Assume that customer falls out of that credit risk profile. The bank can't really help them. And that's why we develop the Progressa score which is Canada's leading alternative credit score where we're looking at other factors besides just their credit. To see if we are able to help that individual out. And that's why you know one of the top things that we help customers with is actually credit card debt. And the banks although I'm sure they would maybe want to help their customers out just aren't able to again because they're looking at that traditional credit score. So that's again where we come in and that's really allowed us to help customers when they need it the most.

Manseeb Khan: Yeah. No. I absolutely agree with you. Could you just rehash a little bit more of how Progressa rates their credit scores and what other factors they look at. Aside from just aside from the traditional credit score model.

Philipp Postrehovsky: Yeah. So, through the progressive score model we've really been able to develop an industry leading score that is looking at other behavioral characteristics. And we have an in-depth chat with that customer many times and we have a saying at Progressa that your story matters and it really does. And we understand that life happens. So, we are looking at this and other things that are going to influence your ability to pay back the loan. And that's why we're able to approve a lot of individuals that would not be normally approved for a loan. And we really do specialize in that debt consolidation space so we work with Canada's biggest collection agencies and we can get into that in a second. But really, I feel that the collection process is broken, and our study reiterates that to us because for example twenty nine percent of Canadians could handle not getting paid for three weeks by 33 percent could handle getting paid for two weeks so people are really living paycheck to paycheck. And if you do fall into a collection situation. The collection agency is there to collect money and they aren't in a position to lend you the money they expect you to pay it right there and then. But the reality is that Canadians do not have funds to just pay. So that's where we come in and we provide a lot of stress relief for those customers and we actually also provide a lot of credit relief I guess as soon as you get into the collection’s world. Your credit scores your traditional credit score gets negatively affected. So if you get a Progressa loan we're able to pay off that collections item which instantly starts to rehabilitate your credit score and you pass back we report to the credit bureaus and then you're on your way to building better credit which will hopefully then put you in a much better spot. Once you're done paying that loan off to us and hopefully get you on your way to a better financial future.

Manseeb Khan: Yeah which is incredible right. Because it's I mean expenses, debt and just like reviving your terrible credit score. It's an it's a tough enough challenge as is. You did briefly mention on how broken the collections I guess system currently is. Could you just talk a little bit more about that? I mean I'm not too familiar about it. I'm pretty sure many of the audience members aren't really familiar about it could just talk about how broken it is how and also how alternative financing and alternative lending can hopefully help create a new system or create a hybrid system that can help repair a lot of the inefficiencies that are currently in place.

Philipp Postrehovsky: Yeah. So, the collections industry is looking for what is called a settlement offer right. So that's something where you have agreed to pay the collection agency the amount that you've negotiated with them right. But the reality is if you don't have that money, you're not going to be able to pay it back. In our study we found that 24 percent of paycheck to paycheck Canadians. Would have no way to pay for an unplanned emergency and another 25 percent would have to turn to the friends or family. So, half of our respondents really have no they're not financially prepared for a difficult financial situation. So that being if you are in collections, we would deem that you're in a difficult financial situation. So, you have these collection agencies calling you repeatedly asking for money that you owe them or to somebody else and you really have no way of paying it. So that's what we see it being broken and that's where we come in right. So, we will work, or the agencies will work with us to pass on that customer and we'll evaluate their situation, and in many cases,  we can offer them a loan, so we'll get off that debt and the collection calls stop. And then you have that consumer now and really grateful and that's actually one reason we have some of the industry leading NPS score. If you're not following of NPS its net promoter score. So, we have kind of customer satisfaction. The big banks are kind of in like that sub 10 range. And our average NPS score is in the 50 range which is considered pretty much world class and one of the reasons it's so high is it is again because we are providing debt or stress relief at you know at a really difficult financial time where you've had a collection calls coming up left, right  and central potentially. And now we've come in there giving you that loan, paid off that debt and now you're dealing with us and you're paying back that loan on a monthly basis which before we came into the picture you just weren't able to do. We're giving the collection agency a tool that they need that the that the customer needs. So, it's a win win for everyone right.

Manseeb Khan: I mean it just speaks on like how we even started off the show right. You guys look at. More aspects other than just like the traditional collections agency of like Hey these are the 50 people that owe us money. You owe money. So, when I keep hassling you and keep harassing you until you pass our back our money and not. Unfortunately being as empathetic towards a lot of the people that do go in debt and you know the circumstance that that much put them in debt in the first place right the fact that you guys are taking that under consideration and taking that under review when it comes to paying off everyone's debt. I mean that in and of itself is very incredible. Yeah thanks.

Philipp Postrehovsky: And you know that all kind of boils down to why we called you know a good financial literacy you know kind of like knowing good financial habits. So we make sure that when a customer comes into our eco system you know that we remind them and we educate them on the payment process and on the credit score and the good things that are going to happen when they're paying that loan back on time and that we are in their court and we want them to succeed and they really appreciate that. So that's a big pillar for us as well as driving financial literacy. And hopefully that customer doesn't find themselves in that situation again in the future.

Manseeb Khan: Just like based on like all the amazing people that you've helped out. Could you talk a little bit more on I guess like give us your top five financial literacy tips they can kind of share with the audience.

Philipp Postrehovsky: I think the top five. I mean you definitely working with a budget is key. Another one is you know paying yourself first. So really putting money aside for a financial emergency or you know an unknown expense that's going to come up will hopefully prevent you from getting into a collection situation. I think you know in general savings when we say pay yourself first you make sure that that money is going into another bank account, so you aren't even really tempted to ever touch that money. We have a blog, blog. progressa dot com where we share personal finance tips on a weekly basis. So those are just some of them but there's a lot of different strategies that you can do really. Another one is really your credit score right. Your credit score is going to enable you to do a lot of good things. It can actually even affect employment right the ability to get a job is affected by your credit score. So really monitoring your credit score and understanding how you can negatively impact and positively impact it is really important. But again, I really suggest I would encourage individuals that are looking for a simple but effective financial tip to go to our blog and check them out there.

Manseeb Khan: Awesome. Yeah. So, it's a blog  dot progressa dot com, right?  Yes, blog dot  progressa dot com. Cool. How else can alternative lending help Canadians when it comes to their expenses and also debts. I mean like we briefly touched on it. So, I guess like could you just paint the picture of how alternative lending is, can become an alternative solution other than going to banks or going to like one of those fast cash fast loans places.

Philipp Postrehovsky: Yeah, I think for us you know we are also big proponents of open banking which really advocates for consumers owning their own financial information and not the banks. You know the bank's kind of hold your financial information close to heart. We use different secure technologies to leverage. And with permission an individual's banking data to you know assess their credit risk. But you know there is a movement towards open banking which really does  support  alternative lending in the end in FinTech in general is meant to be layered over top of in my opinion traditional banking and payment services. And really, it's immense to give the consumer more choices. Again, the banks provide a lot of individuals in Canada a product that works for them. But again because of the credit scoring I guess restrictions they operate in. They can't meet everyone's needs and that's where alternative lending can come in at. And other fintech solutions can come in to meet those needs that are simply not being met by large organizations that are meant to cater to a very specific consumer.

Manseeb Khan: No, I absolutely agree with you. I mean I've I share the same opinion when it comes to fintech and how fintech is actually there to kind of work together with the existing financial system that we currently have. And yeah no I definitely I definitely share the same  rally call when it comes to that. So, I guess what you will be some of the key takeaways when it comes to the study and I guess. what is the next kind of studies that you guys are planning to hopefully roll out and that we can kind of be excited for? Yeah.

Philipp Postrehovsky: So, you mentioned that this our first annual study, so our plan is to actually ask the same set of questions a year from now. We may add some new ones in there but really, we want to start comparing our year to year how things are trending. So, we look forward to doing that and seeing you know how certain economic factors are influencing the average Canadian consumer. So, you can definitely expect that in the future seeing year to year comparisons. So that's the biggest one. And again, for us we're simply trying to we're simply there to provide a solution that Canadians really need, and they need it in a time that that you know they may feel helpless and we are there to help them. So, you can look forward to us continuing to help tens of thousands of Canadians from coast to coast.

Manseeb Khan:  I'm super excited about that. Before I let you go there are a couple of well I think are interesting stats where I kind of hopefully you can kind of expand a little bit more on it and hopefully share with the audience of like you know how alternative financing can be a possible solution. Right like you might like you know a couple of couple ones that you mentioned was you know planning for an emergency expense right to actually having a rainy day fund and making sure that you know you have a sufficient amount of money we can kind of keep you afloat for a little bit just in case of an emergency. Scrolling through here there was an interesting one where a lot of people so there's a majority of people that are actually  not putting money into their RRSP or the TFSA which I find pretty funny. I mean I'm unfortunately am one those people. I mean I always forget it's actually put money aside for both those funds. Yeah.

Philipp Postrehovsky: Yeah I. And honestly from personal experience the easiest best way to do it is set it and forget it right up set up auto withdrawal from your account for either RRSP or TFSA or just a savings account. You're saving for a vacation or something and just set it and forget it. It'll come out again that's all about paying yourself first and then check back in a few months and you'll be pleasantly surprised that there's money in that account that you may have even forgotten that you were saving for. And that is the easiest way to do it. Yeah you can nowadays with your phone use it from your phone. You can set up multiple savings goals for example. And yeah, you're good to go set it and forget it.

Manseeb Khan: Awesome so I'm going to throw the question to you. What excites you the most of when it comes to alternative lending. You know we've talked about helping to pay off your expenses, helping pay off your debts, minimizing the amount of collection calls that you get throughout the hour. So, Philipp what about alternative lending excites you the most?

Philipp Postrehovsky: Yeah. So we just released our first customer testimonial video that's available on our social channels and it really that video highlights to me the work that we're doing and what gets me in them but what gets me the most excited is that we are making a real difference through alternatives lending in people's lives right. So, these individuals really can at times, feel so helpless or very stressed and we are there I guess their savior. In some cases. And we get a lot of really positive feedback through our NPS survey. And you know over and over again you'll hear that people really appreciated the fact that you know we gave them a chance and they're just really grateful. And when you hear how appreciative people you are understand how important alternative lending is and that the work that we're doing really is making a difference. And you know just reminds me again how important Fintech is for the greater good of Canada and the world.

Manseeb Khan: No, I absolutely agree with you. Thank you. Thank you so much for all the amazing work that you guys are doing a Progressa. And you know and the amazing work that you guys are going to be doing in the future. What will be the best way to either reach out to you personally if they have any questions or places that they can kind of get to study.

Philipp Postrehovsky:  you can follow us on Twitter Progressa Canada, or you can follow me  on Twitter Philpostro. You can connect LinkedIn and follow Progressa on LinkedIn. Although social channels we monitor, and we're engaged with on a regular basis. So, feel free to connect and reach out if you've any questions and I'll look forward to answering any questions that do come out.

Manseeb Khan: Perfect. Philip thank you so much for sitting down with me today and I'm super excited to talk to a year from now and see what changes we have in the study.

Philipp Postrehovsky: You're welcome and Go Raptors Go.

Manseeb Khan: Go Raptors go.

Outro : you've been listening to fintech Fridays brought to you by NCFA and partners. Tune in weekly for the latest fintech Friday podcast by subscribing to this channel. The National crowdfunding and FinTech Association of Canada is a non-profit actively engaged with social and investment fintech sectors around the globe and provide education research industry stewardship services and networking opportunities to thousands of members and subscribers. For more information please visit and see if a Canada dot org. Oh yea.

 

End of Podcast

 

Subscribe and Listen to more Fintech Fridays podcasts here

Join NCFA's weekly Podcast series 'FINTECH FRIDAYS' where we sit down with the incredible people in the Fintech community and talk about leading fintech products innovations developments and challenges!

Interested in getting involved as a partner or participant? info@ncfacanada.org

 


NCFA Jan 2018 resize - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky 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 Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip PostrehovskyFF Logo 400 v3 - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovskycommunity social impact - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky




Milestone Release | Jul 15, 2024 Canadian finance startup, Vena Solutions, has announced that its annual recurring revenue (ARR) has surpassed $100 million USD, awarding it the esteemed Centaur classification, which is granted to privately held SaaS companies who generate $100 million USD in annual revenue. Vena's ARR milestone highlights the company's strong annual growth, which is being driven by a rise in the demand for its financial planning and analysis (FP&A) products. Serving more than 1,800 companies in a variety of industries, Vena has proven its scalable solutions, broad market appeal, and just closed a record setting quarter. Vena is dedicated to innovation and recently released an AI-powered tool, Vena Copilot. With the use of Microsoft Azure Open AI technology, this application improves FP&A skills and gives finance teams access to increased operational efficiency and strategic insights. Vena actively promotes a lively community by putting on events like Excelerate Finance, providing free online courses, and starting programs like Vena Academy. These initiatives support the development of an informed user base and improve client interactions. See:  Are you a Pig, Gazelle or Bear? Beyond Unicorns, Zoology of startups Hunter Madeley, CEO at Vena: “Achieving this designation represents an exciting milestone ...
Freepik Unicorn and centaurs - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
Event | Jul 15, 2024 Join the Global Fintech Seminar in Osaka Webinar: A Unique Opportunity for Fintech Enthusiasts Are you prepared to discover new opportunities in the financial industry? This is a chance for fintech enthusiasts and professionals to take part in a "Global Fintech Seminar in Osaka" on July 18, 2024, hosted by the Osaka Prefecture and Osaka City, supported by EY Japan. See:  WealthTech in Asia-Pacific: A Trillion-Dollar Opportunity Event Overview Date: Thursday, July 18th Time: 4:00 PM - 6:30 PM (JST) Format: Online via Zoom Fee: Free Application Deadline: July 17th, 5:00 PM (JST) Register Here Why Attend? Gain insights into the dynamic fintech ecosystem of Osaka through presentations from leading Osaka-based fintech companies such as Warrantee, Giftpad, and CTIA. Learn about exciting investment opportunities in one of Japan's most innovative financial hubs. Connect with industry experts, potential partners, and fellow fintech enthusiasts from around the world. Engage in roundtable discussions and individual meetings designed to foster collaboration and knowledge sharing. How to Register To participate in this free event, please register by visiting this link before the application deadline on July 17th, 5:00 PM (JST). See:  CCAF and WEF Unveil 2024 Global Fintech Report at ...
Global Fintech Seminar in Osaka banner - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
Crypto News | Jul 15, 2024 Donald Trump's Support for Bitcoin and Impact on Trade and Financial Markets On Saturday, President Donald Trump narrowly survived an attempted assassination at a rally in Butler, Pennsylvania.  Markets reacted on Monday, with the price of Bitcoin skyrocketing over $63,000 (over 10%).  In the wake of the attack, investors responded favourably, seeing Bitcoin as a decentralized and safe financial instrument amidst periods of political instability. Furthermore, the Republican platform has officially declared its stance on digital assets, and Trump will be speaking at the upcoming Nashville, Tennessee, Bitcoin Conference. See:  ‘Mugshot Edition’ Trump NFTs Blending Politics, Memorabilia and Digital Assets Trump now supports Bitcoin, changing his earlier unfavourable stance. In his view, Bitcoin is a safe, decentralized substitute for established financial institutions that is necessary for both personal financial sovereignty and economic stability.  Trump's endorsement of Bitcoin has the potential to significantly influence trade policy in the future by encouraging international trade and lowering dependency on fiat currencies. This is consistent with his overarching economic plan to promote innovation and global market competitiveness. Following the assassination attempt, Polymarket showed Trump's chances of winning the 2024 presidential election significantly rose to 71%, it's all time ...
Freepik banknote with bitcoin - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
Governance | Jul 15, 2024 Whistleblowers accuse OpenAI of enforcing illegal NDAs, sparking legal scrutiny and internal review 13 July 2024 – As reported in Techcrunch, former employees of OpenAI have accused the business of enforcing unlawful non-disclosure agreements (NDAs). According to these whistleblowers in a letter, the NDAs forbid them from saying anything negative about publicly accessible data, in addition to preventing them from divulging confidential information. These whistleblowers said that the agreements contained provisions that broke securities laws and significantly limited their capacity to speak out, even on subjects that were already known to the public. They claim that this has created a "chilling effect" that deters workers from informing authorities about unethical or unlawful activity.  It is alleged that these restrictive agreements violate SEC Rule 21F-17(a) which guarantees that people can report possible securities breaches to the Securities and Exchange Commission (SEC) without fear of reprisal.  The SEC has recently increased the rigour with which it enforces this regulation, fining businesses who break it severely. The goal of the rule's implementation is to safeguard informants and promote openness within. See:  PwC Partners with OpenAI to Resell ChatGPT Enterprise In response to the allegations, Sam Altman, the CEO ...
Freepik vectorjuice NDA - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
Report | Jul 15, 2024 Are Web 3 and Social Commerce Ready for Prime Time? Social commerce is expected to reach over $1 trillion in 2023 and 600% increase by 2030. This growth is sparking radical change in consumer behaviour due to tech advancements but there's still a lot of friction existing on today's social media platforms that needs innovating. Enter Web3, the next phase of internet development distinguished by user ownership and decentralization, however is Web3, ready for mass acceptance in social commerce and vice versa?  Dig into just published report from Onyx by J.P. Morgan called  "Web3: A New Era for Social Commerce." Traditional Social Influencers With their large fan bases on TikTok, YouTube, Instagram, and other platforms, social influencers are becoming essential to digital marketing campaigns. However, centralized Web2 platforms play a major role in the traditional influencer model. The distribution of content, data, and revenue are all under the hands of these platforms, which limits influencer autonomy and puts them at the whim of platform algorithms. Influencers' reach is fueled by engagement metrics like likes, comments, and shares, but they can be manipulated by the platforms, giving audiences and influencers alike an uneven and occasionally untrustworthy ...
Onyx Web3 A new era for social commerce - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
Crypto Regulation | Jul 12, 2024 US House Fails to Override Biden's Veto on SEC's Controversial Staff Accounting Bulletin 21 (SAB 21) Recently, a bill to override President Joe Biden's veto of the controversial SEC Staff Accounting Bulletin No. 121 (SAB 121) was not successfully passed by the U.S. House of Representatives. According to SAB 21, businesses that hold digital assets on behalf of clients are required to list those assets on their balance sheets as liabilities. See:  SEC Intensifies Accounting Audits in 2023 The override attempt failed to garner the two-thirds majority required to overcome the presidential veto, even though it was approved by both the House and the Senate with support from both parties. Background on SAB 121 and Bill to Overturn It SAB 121, which the SEC released in March 2022, has caused controversy in the cryptocurrency and banking worlds. Through correct accounting for digital assets, the guideline seeks to protect investors and enhance transparency by possibly reducing the risks associated with their volatility. However, opponents contend that this regulation places excessive constraints on companies and may inhibit innovation in the quickly developing crypto markets. Representative John James (R-MI) proposed the bill to repeal SAB 121, and ...
Freepik pch.vector accounting - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
Enforcement | Jul 12, 2024 SEC Ends Investigation into Paxos Over Binance USD Token with No Enforcement Action Taken The Securities and Exchange Commission (SEC) of the United States has finished its probe into Paxos Trust Company concerning the stablecoin Binance USD (BUSD) issuance and is not taking any enforcement action over BUSD. Paxos statement as reported by WSJ: “Paxos Trust Company has always maintained that its USD-backed stablecoins are not securities under federal securities laws and that the Wells Notice was unwarranted and unjustified. We are proud of our relentless advocacy for stable-value digital assets and that the SEC staff determined it will not bring enforcement action against Paxos in connection with BUSD.” Background Since 2019, Paxos, a regulated blockchain infrastructure company, collaborated with Binance to issue a BUSD stablecoin which was authorized by the New York Department of Financial Services (NYDFS) and is fixed 1:1 to the US dollar. The SEC warned Paxos in a Wells Notice at the beginning of 2023 that there may be enforcement action taken in response to BUSD's classification as an unregistered security. The NYDFS was compelled by this notice to direct Paxos to stop issuing new BUSD tokens, while stablecoin redemptions were ...
US Securities Exchange Commission - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
Crowdfunding | Release | Jul 11, 2024 Innovative tool highlights top U.S. startup ecosystems, revealing key trends and insights Denver, Colorado, July 11, 2024 - Today, the "Crowdfunding Genome", a visualization tool and ecosystem report, was launched by Crowdfund Capital Advisors (CCA), a global authority in investment crowdfunding research, data, and analysis. This data research highlights the best cities for entrepreneurship and crowdfunding innovation while providing insights into startup ecosystems across the country. What is the Crowdfunding Genome? A visualization tool developed by CCA, the Crowdfunding Genome provides access to comprehensive crowdfunding data insights unveiling the inner workings of startup ecosystems. Using sophisticated analytics and exclusive investment crowdfunding data, it evaluates a number of variables that affect and rank startup performance, such as fundraising amounts, investor participation, and entrepreneurial conditions of the sector. The Genome also comes with a complimentary 'Investment Crowdfunding Ecosystem Report 2024' that explores the results. Phoenix/Scottsdale Tops the List of Best Startup Ecosystems in the USA According to the Crowdfunding Genome, Phoenix/Scottsdale is currently the nation's top startup ecosystem based on a number of variables contributing to the region's top ranking: See:  Fintech Fridays EP62: The Future of Investment Crowdfunding: Innovations, Data, and Opportunities Growth in ...
CCA Crowdfunding Genome July 2024 - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
AI | Jul 11, 2024 SMEs will be Turbocharged as we move from 'AI Tools' to 'Guided AI Agents' We agree with NFXs recent post that using "Guided AI Agents" instead of "AI tools" can automate a large amount of work and advance automation beyond simple job execution to produce efficiencies and specific business outcomes.  For the first time ever, there's a technology that can help solve the problem of 'delivering uniqueness at scale', and small-and-medium-enterprises (SMEs) need to take advantage of this momentous opportunity. 1. Automation Potential “This very moment, we could easily automate away 60% to 70% of the global economy’s work hours with AI.” With today's technology, around 50% of all work activities may be automated. By 2025, AI will generate 97 million new jobs while replacing 85 million existing ones. By 2024, organizations will use hyper-automation technology to reduce operating expenses by 30%. SMEs should reduce costs and increase productivity by using AI to automate repetitive processes like compliance checks and customer service. 2. From “Tasks” to “Outcomes” Guided AI Agents represent a shift in focus from completing tasks to achieving outcomes. This approach enables businesses to measure success based on tangible results rather than the ...
Freepik AI assisted person interacting with AI robot - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky
Regulation | Jul 11, 2024 Insights from SEC's Director of Enforcement:  Federal Securities Laws in the Age of Crypto in a recent speech titled "What's Past is Prologue: Enforcing the Federal Securities Laws in the Age of Crypto", Gurbir S. Grewal, Director of the SEC's Division of Enforcement, delivered an overview of the present legal environment for crypto assets at the Third Annual Symposium of the William & Mary Business Law Review. See:  Challenges in Global Crypto Regulations – Lessons from Dubai He highlighted the importance of strong enforcement, the continuous applicability of federal securities laws, and the delicate balancing act between innovation and compliance. Below are select quotes across five themes from the depths of the SEC's securities enforcement division that shine light on the implications for the cryptocurrency industry. 1. Historical Continuity of Securities Regulation Grewal emphasizes the continued applicability of the basic principles that informed the development of US securities laws. “The history of our securities laws makes clear that Congress always intended the definition of what is a security to be principles-based and flexible to cover the many kinds of schemes where promoters seek others’ money and promise profits in return.  Whether something is a security ...
Gurbir S. Grewal Director Enforcement Division SEC - Fintech Fridays Ep33:  Indexing Consumer Loans and Financial Literacy with Phillip Postrehovsky

Leave a Reply

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

1 × 1 =