It has been a lean legislative session in Congress for fintech. But this week some progress was made on earned wage access.
But on Wednesday we learned that the Earned Wage Access Consumer Protection Act advanced in the House Financial Services Committee. This bill aims to provide a federal regulatory framework for companies offering this product.
The states have taken the lead when it comes to earned wage access regulation with Nevada, Missouri and Wisconsin all adopting new regulations. But there has been little movement at the federal level until now.
The new bill is strong on consumer protections, setting strict boundaries for both the employer and direct-to-consumer models. It still has a long way to go to become law, but it is a positive first step.
I am a big fan of this product, as I think it is the one fintech innovation with the most potential to transform financial health on a massive scale.
And it just makes sense. We live in an on-demand world, we shouldn’t have to wait two weeks to receive wages we have already earned.
Featured
> Congress Advances Earned Wage Access Bill as Popularity Grows
When is a loan not a loan? That is, in one sense, the question at the heart of proposed new federal legislation around earned wage access (EWA) that is coming on the heels of multiple states debating their own regulations in the absence of substantial federal rules around EWA products.
From Fintech Nexus
> Incognia’s location-based solutions offer fraud antidote
By Tony Zerucha
As artificial intelligence (AI) provides new tools to criminals, Incognia’s tools are 17 times more effective than facial recognition.
> Take our survey on the future of lending
By Peter Renton
Lending is going through a new wave of innovation and we want to hear what is most interesting and important to you.
Podcast
Liza Landsman, CEO of Stash on creating financial opportunity
The CEO of Stash discusses how everyday Americans can create a better financial life through unique tools that make investing…
Webinar
How to Maximize Conversions, Minimize Fraud at Account Opening
May 2, 2pm EDT
Both banks and fintech want onboarding new customers to be secure, simple and fast. But there is a delicate balance. Make…
Also Making News
- Global: Stanford researchers say large language models favor white-sounding names
Tests of models from OpenAI, Google and others found their advice tends to disadvantage names commonly associated with racial minorities and women.
- UK: Wagestream raises £17.5m
Financial wellbeing app Wagestream has raised £17.5 million in a funding round joined by a British Business Bank subsidiary.
- India: Fintech CRED secures in-principle approval for payment aggregator license
CRED has received the in-principle approval for payment aggregator license in a boost to the Indian fintech startup that could help it better serve its customers and launch new products and experiment with ideas faster.
- Global: Technology as the hero and the anti-hero in the quest of building products for Gen Z
We often think of technology as a driver for innovation in the financial industry. The word “technology” is in some ways synonymous with new and better. But not all technology pushes the envelope further for FIs.
- USA: A Century-Old Lending Lifeline for Troubled Banks Has a Major Flaw. The Fed Wants to Fix It.
Borrowing from the discount window carries a stigma officials hope to reduce.
- UK: Fintech finally starts to add up for investors
More firms may be seeking listings in the next year
To sponsor our newsletters and reach 180,000 fintech enthusiasts with your message, contact us here.
