#Digital Banking

[justinspoliticalcorner]

Adam Clark Estes at Vox:

Some people collect coins or stamps. For a time, I collected debit cards. Not stolen ones! Each one of them had my name on them, right below the logo of the latest banking app I’d decided to try out: Venmo, Cash App, Chime, Varo, Current, Acorns. For the better part of a decade, I did all my banking through these apps, enjoying their slick user experience and lack of fees. The problem with every one of them, however, is that they’re not chartered banks. If the company behind the app went bankrupt, the Federal Deposit Insurance Corporation (FDIC) would not necessarily come to my rescue. This disaster scenario was a hypothetical worry when I eventually settled for Chase and its FDIC insurance. For millions of others, it became a reality earlier this year when a company called Synapse collapsed and froze them out of their accounts. Users of Yotta, a popular savings app with a built-in lottery, and other apps that relied on Synapse to help manage their accounts couldn’t access their money for months. Now, as hundreds of thousands of Synapse customers’ dollars remain in limbo, Sens. Elizabeth Warren (D-MA) and Chris Van Hollen (D-MD) are calling for banking reforms, and the FDIC is proposing changes to its rules.

Still, a growing number of people are embracing these financial technology, or fintech, services. More than a third of Gen Z and millennials used a fintech app or a digital bank as their primary checking account, according to a 2023 Cornerstone Advisors study. So some questions are worth asking: Is it a bad idea to use an app like Venmo as your main bank? Are digital banks like Chime trustworthy enough? The answer to both questions is yes. Venmo is not a bank, and using it as your primary checking account comes with some risks. Some fintech companies, like Chime, are just as big as traditional banks and offer some nice perks. Again, because they’re nontraditional, there are risks. “You’re not going to go back to a world where everybody works with a small bank and walks into a branch,” Shamir Karkal, co-founder of Simple, one of the first digital banks. “The future is just going to be more fintech, and I think we all just need to get better at it.”

Neobanks and money transmitters, briefly explained

The term fintech can refer to a lot of things, but when you’re talking about everyday services for everyday people, it typically refers to either neobanks or money transmitters. Chime is a neobank. Venmo is a money transmitter. They’re regulated in different ways, but because most of these companies issue debit cards, many people treat them like checking accounts. Fintech apps are not the same thing as FDIC-insured banks.

Neobanks are fintech companies that offer services like checking accounts in partnership with chartered banks, which are FDIC-insured. Neobanks sometimes enlist intermediaries known as banking-as-a-service, or BaaS, companies, which are not FDIC-insured. Still, you will often see the FDIC logo on neobank websites, just like you see it stuck to the glass doors of many brick-and-mortar banks. That logo instills trust, and thanks to their partnerships, neobanks can claim some FDIC protections. But because they do not have bank charters, these neobanks and BaaS companies are not directly FDIC-insured. Instead, neobank customers can be eligible for something called pass-through deposit insurance coverage.

[...] Money transmitters, also known as money services businesses, are even further removed from the perceived safety of the FDIC. Put bluntly, if you’re keeping all your money in a Venmo or Cash App account, you don’t qualify for FDIC insurance. Money transmitters are not neobanks or banks at all but rather completely different legal entities that are regulated by individual states as well as the Department of the Treasury. There are certain protections provided by these agencies, but FDIC insurance is not one of them. So when an app like Yotta or Chime says on its website that it’s FDIC insured, it’s not a lie, but it’s not necessarily true either. Venmo, to its credit, admits in the fine print of its homepage that its parent company PayPal “is not a bank” and “is not FDIC insured.” To confuse you even more, however, certain PayPal services that enlist a chartered bank partner, like a PayPal Mastercard or savings account, might qualify for FDIC insurance. Again, it depends.

[...] That doesn’t necessarily mean that all neobanks and fintech companies are untrustworthy. In some cases, the sheer size and track record of fintech companies can instill quite a bit of trust. Chime, the largest digital bank with roughly 22 million customers, scored a $25 billion valuation in its latest round of funding and is planning to go public next year. Venmo’s parent company, PayPal, is widely considered safe and trustworthy. And don’t expect Block, the $42 billion company that owns Cash App as well as its own chartered bank, to fail any time soon. The truth is, even if there is some false sense of security, fintech apps offer certain customers features that big banks can’t or won’t. One thing that’s made Chime and many other neobanks so popular, for instance, is that they don’t charge so many fees. That’s a huge boon to young people as well as people without bank accounts. If a fintech app is your only option, then you might not care so much about FDIC insurance.

“If you’re poor in America and you’re banking at Chase or Wells Fargo, you’re going to get overdraft fees, minimum balance fees,” Mikula explained. “So there is a real need that [fintech] companies fulfill as a result of your establishment banks essentially not wanting to bank poor people because it’s difficult to do profitably.” As many as 6 percent of Americans were living without a bank account in 2023, according to Federal Reserve data. That share grows to 23 percent for those making less than $23,000 a year. The unbanked population, which disproportionately comprises Black, Hispanic, and undocumented people, is at a greater risk of falling victim to predatory lending practices, including payday loans. Some fintech companies also offer short-term loans, though they’ve been criticized for being predatory as well.

If you have Venmo, Cash App, Zelle, or any fintech or digital banking app, be aware: don’t use them as your primary checking account.

[ikingamongstkings]

(via Sofi vs. Chime. Is Sofi's Free Checking Account the Better Choice?)

[gambocco]

With blockchain technology, we can build a transparent and decentralized financial system that restores trust in financial institutions. Together, we can say goodbye to corrupt banks and hello to a more secure and fair financial future. #blockchain #transparency #ethicalbanking

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[visionaryvogues03]

How Fintech Disruption is Reshaping Traditional Banking: Opportunities and Challenges

The Fintech disruption underlies banking products & processes for savings, lendings, & business services renders the sector ripe for disruption. This disruption in banking has brought us enhanced financial tools, online payments, & crowdfunding with InsurTech (insurance technology) solutions. All of this was done by brilliant minds that came together to understand the peculiarity of design thinking & created services in an environment where banks struggled. The fintech innovators deeply understood the real struggle of customers when they need to perform banking services.

The Evolution of Fintech Disruption

Fintech disruption is not a new phenomenon, but its acceleration over the past decade has been remarkable. The rise of mobile banking, peer-to-peer lending, and digital wallets has fundamentally changed customer expectations. Traditional banks, once the sole gatekeepers of financial services, now face increasing competition from agile fintech startups that offer innovative, customer-centric solutions.

The COVID-19 pandemic further fueled this shift, with digital adoption skyrocketing as consumers and businesses sought seamless, contactless financial solutions. Today, banking transformation is not just a trend—it is a defining force shaping the future of banking.

Opportunities Created by Fintech Disruption

While fintech disruption presents challenges for legacy institutions, it also opens doors for strategic innovation. Some of the most notable opportunities include:

1. Enhanced Customer Experience

One of the key drivers of fintech disruption is its ability to deliver superior customer experiences. Traditional banks, often hindered by outdated systems and bureaucratic processes, struggle to match the seamless, intuitive interfaces of fintech platforms. Digital-only banks and neobanks offer faster onboarding, personalized services, and real-time transaction capabilities, raising customer expectations across the board.

Fintech firms also leverage big data analytics and artificial intelligence to personalize financial products, tailoring services based on user behavior. This hyper-personalization is something traditional banks must rapidly adopt to remain competitive in the modern landscape.

2. Expansion of Financial Inclusion

Digital banking disruption has enabled access to financial services for previously underserved populations. Mobile banking and digital lending platforms have reached millions of unbanked individuals worldwide, particularly in emerging markets. By leveraging AI-driven credit scoring models, fintech companies can provide financial products to consumers without traditional credit histories, fostering economic growth and inclusion.

In many developing nations, fintech solutions are bridging the gap between financial exclusion and accessibility, allowing small businesses and individuals to gain access to capital and transactional capabilities that were previously unattainable.

3. Cost Efficiency and Automation

Automation powered by artificial intelligence and machine learning has allowed financial institutions to reduce operational costs while improving efficiency. Chatbots, robo-advisors, and AI-driven risk assessments streamline banking services, minimizing human intervention and enhancing accuracy. Traditional banks that embrace these technologies can significantly cut costs and improve their bottom line.

Additionally, fintech startups are leveraging cloud-based solutions to eliminate the need for costly infrastructure, offering leaner and more agile banking alternatives that operate with greater efficiency.

4. Blockchain and Decentralized Finance (DeFi)

Blockchain technology, a major driver of fintech disruption, is reshaping the banking sector through decentralized finance (DeFi). Smart contracts, tokenized assets, and decentralized exchanges eliminate intermediaries, offering faster and more transparent financial transactions. Banks that integrate blockchain technology can improve security, reduce fraud, and enhance transactional efficiency.

The impact of DeFi is extending beyond simple transactions, introducing new lending models, staking rewards, and innovative credit mechanisms that challenge the very foundation of traditional banking practices.

Challenges Posed by Fintech Disruption

Despite the immense opportunities, fintech-driven disruption also brings significant challenges for traditional banks and regulators.

1. Regulatory Uncertainty and Compliance Issues

The rapid growth of fintech has outpaced regulatory frameworks in many regions. Traditional banks operate under strict compliance requirements, while fintech startups often function in more loosely regulated environments. As governments worldwide attempt to regulate fintech disruption, banks and startups alike must navigate complex and evolving legal landscapes.

Regulatory frameworks also differ across countries, creating additional hurdles for fintech firms looking to expand globally. Banks must adapt to these variations while ensuring compliance with local financial laws and data protection regulations.

2. Cybersecurity Risks and Data Privacy Concerns

With fintech disruption comes an increased risk of cyber threats and data breaches. Digital-first financial services rely heavily on cloud computing, open banking APIs, and third-party integrations, which create vulnerabilities. Banks and fintech companies must invest heavily in cybersecurity measures to protect consumer data and maintain trust.

Cybercriminals are continually evolving their tactics, making it essential for financial institutions to stay ahead with robust security protocols, biometric authentication, and end-to-end encryption.

3. Competition and Market Saturation

The fintech ecosystem is rapidly expanding, with thousands of startups entering the market each year. Traditional banks not only compete with these disruptors but also need to differentiate themselves from the growing number of fintech players. Partnerships between banks and fintech firms have become a strategic necessity to stay competitive in an increasingly saturated market.

The competition also forces traditional banks to innovate rapidly, sometimes leading to rushed digital transformation efforts that may not be fully optimized or secure.

4. Legacy Infrastructure and Digital Transformation Challenges

Many traditional banks still rely on outdated legacy systems that are not built for the agility of modern fintech solutions. Transitioning to a digital-first model requires significant investment, cultural shifts, and technological overhauls. Banks that fail to adapt risk becoming obsolete in the face of rapid digital banking disruption.

Financial institutions must undergo comprehensive digital transformation, modernizing their IT infrastructure, training employees, and rethinking customer engagement strategies to align with new-age banking trends.

The Future of Banking in a Fintech-Driven World

Looking ahead, traditional banks must embrace digital banking disruption as an opportunity rather than a threat. The future of banking will likely involve greater collaboration between legacy institutions and fintech innovators. Banks that successfully integrate fintech capabilities—whether through in-house innovation, strategic partnerships, or acquisitions—will be better positioned to thrive in this evolving landscape.

Regulators, too, play a crucial role in shaping the future of financial services. Balanced regulatory frameworks must encourage innovation while ensuring consumer protection and financial stability. Governments worldwide are actively working on establishing clearer fintech regulations to bridge the gap between innovation and compliance.

The integration of AI, blockchain, and big data analytics will continue to redefine the banking industry, creating new avenues for personalized financial services, automated wealth management, and secure digital transactions.

Conclusion

Fintech disruption is undeniably reshaping traditional banking, presenting both groundbreaking opportunities and formidable challenges. From enhancing customer experience and financial inclusion to navigating regulatory complexities and cybersecurity threats, the financial industry is at a critical juncture.

To stay relevant in an era of fintech disruption, traditional banks must prioritize digital transformation, adopt emerging technologies, and foster strategic collaborations. By doing so, they can not only survive but thrive in this dynamic and rapidly evolving financial ecosystem.

The future of banking belongs to those who can seamlessly blend the best of both worlds—leveraging the trust and stability of traditional banking with the agility and innovation of digital banking disruption.

Uncover the latest trends and insights with our articles on Visionary Vogues

[greengages-blog]

An e-money account provides a secure and convenient way to manage digital transactions. The process begins with secure registration and multi-layer authentication to ensure account safety. Users can easily load funds via bank transfers or cards and make instant transfers with low fees. The account supports bill payments, online shopping, and smart budgeting tools to track expenses. Card integration allows seamless in-store and online payments. Advanced security features like biometric authentication and fraud detection enhance protection. With 24/7 customer support and global accessibility, users can make cross-border transactions and manage multiple currencies efficiently, ensuring a smooth digital payment experience.

[mirrorreview]

15 Strongest banks in America for financial investment

The world-famous investor Warren Buffet said, “Banking is a very good business if you don’t do anything dumb”. This is because banking is one of the big businesses in the USA. We’re talking about the top 15 banks alone holding a jaw-dropping $18.61 trillion in assets!��

Consequently, investors are presented with a broad spectrum of choices when considering banking institutions for investment purposes. Therefore, this analysis aims to provide a discerning perspective on the leading banks in America.

Click Here: Read More

[madurapost]

BPRS Bhakti Sumekar Sesuaikan Jam Operasional Selama Ramadan 2025

SUMENEP, MaduraPost – Dalam rangka menyambut bulan suci Ramadan 1446 H, BPRS Bhakti Sumekar melakukan penyesuaian jam operasional di seluruh kantor cabangnya. Langkah ini diambil untuk memastikan pelayanan kepada nasabah tetap optimal tanpa mengganggu aktivitas ibadah selama bulan puasa. Direktur Utama BPRS Bhakti Sumekar, H. Hairil Fajar, menegaskan bahwa kebijakan ini merupakan bentuk perhatian…

[onenettvchannel]

BALITANG NEGOSYO: Digital Banking Firm 'CIMB Bank Philippines' launches 'CIMB Pay' for Fee-Free QR and Bank Transfers [#OneNETnewsEXCLUSIVE]

TAGUIG, NATIONAL CAPITAL REGION -- 'CIMB Bank Philippines' unveil to introduce "CIMB Pay", a new feature for making QR code payments and transferring money to the Philippine banks or electronic wallets without any fees. This newly-launched digital payment system recently rolling out in the mobile app on February 8th, 2025 (Manila local time).

For those unfamiliar with CIMB, here is what you need to know from scratch. CIMB Group Holdings Berhad situated in 'Kuala Lumpur, Malaysia', is a leading universal bank operating in the high-growth economies of the ASEAN region. The full acronym of CIMB is Commerce International Merchant Bankers.

'Bian Chiang Bank' was founded in 1924 in 'Kuching', this said country of Malaysia. It rebranded as CIMB in September 2006, becoming a traditional and digital-only bank. CIMB has since become a significant player in various sectors, including consumer banking, corporate banking, investment banking, Islamic banking, asset management and insurance service, which later including loan services above the mid-2000s. Twelve (12) years later in December 2018, CIMB has also launched the expanded digital banking services in 'Bonifacio Global City, Metro Manila, National Capital Region', aiming to provide innovative financial solutions for the local market.

Today, "CIMB Pay" uses the QRPh system, the national EMV (Europay-Mastercard-VISA) standard for Quick Response (QR) payments in the Philippines, where users can pay to over 1 million merchants across the country, including those in Negros Oriental such as Dumaguete City. This allows customers to pay for goods and services by simply scanning the QR codes displayed by the merchants, making the payment process and overall convenience.

Apart from supporting merchant payments, "CIMB Pay" also has a peer-to-peer fund transfer feature. Users can immediately transfer funds to other banks or e-wallets like Bank of the Philippine Islands (BPI) or Maya wallet by generating and scanning QR codes directly, with transactions to be settled through 'InstaPay' network. Interestingly, 'CIMB Bank Philippines' has 5 free transfers a day through this transferring bank network platform, where customers can manage their finances without additional fees.

The launch of "CIMB Pay" proves 'CIMB Bank Philippines' commitment to improving the digital banking experience of its customers. With fee-free QR payments and transfers, the digital-only bank aims to promote financial inclusion and support the country's move towards a cashless economy.

With the rise of digital payments in the financial tech bank industry, "CIMB Pay" places 'CIMB Bank Philippines' at the leading edge of the financial industry, delivering customers convenient and swiss army-like banking services. 'CIMB Pay' and 'QRPh' system are both supervised and regulated by the 'Bangko Sentral ng Pilipinas' (BSP).

BANNER PHOTO COURTESY: CIMB Bank PH via PR BACKGROUND PROVIDED BY: Tegna

SOURCE: *https://www.cimbbank.com.ph/en/our-app/cimb-pay.html *https://www.cimbbank.com.ph/en/help-and-support/faqs/app-transactions/cimb-pay/about-cimb-pay/what-is-cimb-pay.html *https://www.cimb.com/en/who-we-are/our-presence/philippines.html *https://www.cimbbank.com.ph/en/our-dna/about-us.html and *https://en.wikipedia.org/wiki/CIMB

-- OneNETnews Online Publication Team

[peterbordes]

2024 was a year of scale for Synctera 🚀 🙌

Here’s a glimpse of what they achieved this past year:

456% increase in accounts

215% increase in deposits

$219 billion of trans

From increasing platform usage to scaling product functionality, there has been a lot to celebrate in the past year.

synctera growth in 2024 put these foundational processes to the test in the best way possible. Usage on the Synctera Platform dramatically increased thanks to the launch of exciting new customers like Webull and Grabr, as well as our existing customers hitting their next phase of growth like BTG Pactual and Firstcard.

[gambocco]

Tired of being hit with unexpected bank fees for just having an account? It's time to decentralize the banking industry with #blockchain technology & innovative digital banking options. Say goodbye to banks' greed & unfairness and hello to a new era of customer-centric #banking.

[gohilricky49]

How to use the UPI payment app to boost your business

The unified payments interface (UPI) is a dependable, immediate, real-time payment technology that offers various financial services and activities on a single platform. UPI improves financial inclusion, expedites money transfers, and hastens the country’s shift to a cashless economy. Companies must use the UPI bank app to meet the growing demand from customers for this payment method. Here mentioned are the ways the UPI payment app to boost your business:

Connect to a payment gateway that facilitates UPI flow:

You can interface with a payment gateway to streamline your payment procedures. You must confirm that your payment gateway supports UPI flow. This feature should ideally function on the web, iOS, and Android devices.

Get in-app payments with UPI:

Consumers are switching to mobile payments more quickly, and there is a good chance that mobile payments will rise soon. Due to the mobile app UPI integration, your consumers can use their phones to make UPI payments. Furthermore, a quicker checkout process will significantly improve the consumer experience.

Payment retrieval over the UPI payment link:

Businesses can easily create a link with payment links that customers can send via SMS, email, or WhatsApp. You should make a UPI registration with your bank account. You can also decide to transmit a UPI payment link to receive payments.

UPI Intention:

UPI Intent entails a smooth app-to-app transition. Businesses benefit from increased transaction funnel visibility. You can see which UPI app a consumer uses and a decrease in the possibility of human error, which results in more successful payments.

QR Code:

The user can easily make payments by opening their preferred UPI app, scanning the dynamic QR code, and creating a unique one throughout the checkout process. QR codes come in two varieties: static and dynamic. The former is the one you constantly scan to pay for your coffee when you see it outside stores.

Make subscription plans available by turning on the UPI e-mandate:

You may design subscription plans for your clients and let them set up automatic withdrawals from their bank accounts connected to UPI. The user can enable this by completing a one-time UPI mandatory authentication. You can schedule these payments for weekly, annual, or monthly transactions. The client never forgets a date and doesn't have to worry about the payment schedule.

Success rates of UPI payment app:

Enhanced client satisfaction:

Customer experiences are made frictionless by embedded or in-app UPI payments. Additionally, improved visibility across the whole client purchase funnel is made possible via embedded payments.

Higher conversions.

There are no extra hops to third-party UPI apps, retailers may enable UPI for users on their apps and guarantee a seamless experience. This frictionless state improves conversions and, eventually, retention due to the easy and flawless payment process.

Partial words:

Digital payments are made simple and reliable with UPI payment apps. They are now a crucial component of the nation's financial landscape. With a QR code scanner, you can make your payment easier. It is expected that as digital transactions advance, they will become even more safe and convenient, facilitating the growth of the cashless economy.