The following is an excerpt from today’s Global Newsletter.
If you like to store deposits in digital payment apps, you may want to rethink that strategy.
The Washington Post (soft paywall) had a story yesterday that warned consumers that there is no insurance on those funds, and they may be at risk.
“Popular digital payment apps are increasingly used as substitutes for a traditional bank or credit union account but lack the same protections to ensure that funds are safe,” Consumer Financial Protection Bureau Director Rohit Chopra said in a news release Thursday.
Most people likely assume their funds are kept in a traditional bank to be drawn upon when transacted because — let’s be honest — no one reads the terms and conditions. Perhaps instead of speed-scrolling through the mountain of text to activate the “I agree” button, we should be more diligent about informing ourselves before signing in virtual blood.
It’s a good practice to link bank accounts and move balances back and forth as needed on a regular basis. It’s a small burden in exchange for the ease of transfer the apps bring.
From Fintech Nexus
 Global Credolab takes unique approach to credit scoring, financial inclusionBy Tony Zerucha Lenders have long identified the need to develop better scoring models that include those with thin or no credit files, but the problem persists, Credolab’s CSO Michele Tucci said. Credolab tackles the problem using privacy-consented and permissioned data through smartphones and web pages. |
| Global Three fintech design and development tips to drive adoption By Kristiane Mandraki In a world where user experience is do or die, fintechs lose wallet share and loyalty due to mistakes around frontend design and development. |
| Global Replay: Weekly news show, June 1, 2023 By Fintech Nexus Staff Watch the replay of our weekly news roundup show with hosts Peter Renton and Todd Anderson, with special guest Ron Shevlin. |
Also making news
- USA: Apple savings account customers say it’s hard to get their money out Some customers with Apple savings accounts, which are a partnership with Goldman Sachs, say it has taken weeks to withdraw money.
- USA: Fintech giant Stripe is getting into the credit game Financial infrastructure giant Stripe today is announcing a new charge card program, giving platforms a way to offer access to credit.
- USA: PayPal, CFPB resume fight over digital wallets and prepaid card rule PayPal Holdings and the Consumer Financial Protection Bureau have refiled legal claims in their ongoing court battle over disclosure requirements for digital wallets in the bureau’s prepaid card rule.
- USA: Goldman Sachs’ playbook for keeping innovation alive The investment bank’s technology fellowship program allows engineers to advance into tech leadership roles.
- Europe: Habito has a new CEO and a fresh round of funding Former Dynamo CEO Ying Tan is taking over from founder Daniel Hegarty.
- USA: TD Bank’s no-interest credit card: Niche product or trendsetter? TD Bank’s offers no rewards on its ‘Clear’ credit card … but it also promises never to charge interest or late fees. Other players are watching this industry first closely.