Tedd Huff

My debrief of Nacha #Payments2024 - It's a fun time to be a #paymentsgeek !!   The maturing of recent innovations - open banking, instant payments, AI, pay by bank, fraud behavior - is keeping our industry happily busy and energized. New regulations, including CFPB's 1033, Nacha's fraud monitoring, and privacy rules, are driving additional evolution and building a foundation for 2025 and beyond. Here are my top takeaways from Miami Beach 🏖 :    🌴 Open Banking >> A lot of discussion on the impact of CFPB's 1033 rule and how the requirements will impact FIs and fintechs alike. The industry is supportive of building a new foundation of rules for open banking, but data security and liability responsibilities remain unwavering concerns.   🌴 Pay by Bank >> The new "branding" of bank account payments has created a buzz as market leaders - Airbnb, Uber, Walmart, and Stripe - introduce bank payments in non-traditional checkout experiences. As PBB grows, we anticipate additional industry pressure for better education on dispute processes, clearing windows, and funds availability of ACH compared to card payments.    🌴 Fraud >> The growth of instant credit push payments is generating special interest to better identify mule and scam accounts. A new Nacha fraud monitoring rule - effective March 2026 - requires ODFIs to improve their housekeeping by identifying fraudulent accounts by implementing processes that detect these behaviors. Think of the rule as the WEB debit account validation rule, but for all ACH payments and less prescriptive.    🌴 Instant Payments >> Excitement continues around faster payments for new use cases that actively leveraging RTP/FedNow/Same Day ACH. Next-day micro deposits are being replaced with instant penny deposits via RTP/FedNow. With nearly 100M transactions per month, Same Day ACH is also supporting organizations moving to clear payments faster.   🌴 7/365 ACH Processing >> The pressure is mounting - and supported by Nacha - for the Fed to expand processing windows to the weekends and holidays. The growth of pay by bank will also exert additional external pressure to speed up the communication of return notifications and communications between financial institutions.   It was great to see my Nacha fam!! Stephanie Prebish, AAP, APRP, CTP Jane Larimer Jane Hennessy Peter Tapling, APRP Peter Davey Elizabeth Cronenweth Rick Fiorito Brian Dao, AAP Kevin Harrison Jeff Caton Andrew Meister Merlin Bise Michelle Ziolkowski Reed Luhtanen Stacy Nascimento, AAP Olivia Maciel, AAP, APRP Lindsey Richardson, AAP, APRP Irfan Ahmad Shehreyar J. Chris Colson, MBA, CBP Kevin Hughes Chris Chazin Steve Gana Jason Carone Rob Pacifico Kimberly Keely, MS, PMP Charles Ellert Joe Hussey

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Chase will automatically link all debit and credit cards and notify customers when they're ready to use them. I guess it Paze to have 60m consumers and auto-enroll them to your digital wallet 🧠 They're talking up the benefit of "not having to send merchants your card numbers." That's a security feature, part of tokenization, but what's really going on here is a land grab in the wallet wars. 🧠 Apple Pay has a massive lead—55.8m users—and it works with any bank. The Apple Pay and Shop Pay experience is tight and well liked by users. And don't forget about FastLane. 🧠 In-built distribution is not in-built adoption. Chase alone has more customers. However, auto-enrolling does not guarantee instant adoption. Users must still download and use the Paze wallet. 🧠 The timing is interesting. This follows Apple's recent announcement that it's opening up its NFC capability. You have to imagine Apple will do everything it can to make the Apple Wallet experience more tightly integrated into the device and more "secure." 🧠 Don't underestimate the banks here. They made Zelle happen, they could make Paze happen, and even Fetch happen; who knows... I imagine banks will offer their merchants giant incentives to put a Paze button at checkout. They'll get adoption by brute-forcing it with distribution and pricing power. 🧠 I think there's a gap in the market for the boomer wallet. You're fair game if you're not already using Apple Pay or Shop Pay. The Zelle user is the ideal Paze user. This is a segment of the market but not the growth segment, nor is it the only segment. The space will remain competitive for a long time to come. They won't lose. But they won't win either. Let the wallet wars begin.

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In 2022, Wells launched a credit card with Bilt Technologies, a fintech startup. But ...losing as much as $10 million every month..the program has also been hit by fraud. The partnership also poses money-laundering risk. Khwaja's Reflections from Board Oversight Standpoint: Wells Fargo has been making some (good) progress on the corporate governance front. Some of the forward-thinking areas include: ✅ Enhancing disclosures regarding board oversight of human capital management and risks, culture and ethics, and framework for workplace harassment and discrimination.  ✅ Technology and Innovation as one of five strategic pillars. More can be done. Here is My Take: ✅ There is a misalignment or lack of interlock between tech/innovation and risk oversight. ✅ I recommend the lead director establish a standing technology/innovation and cybersecurity committee. ✅ Make the pie bigger for value creation and don't delegate innovation/technology agendas to other committees such as audit or risk. ✅ Per proxy report, 38% of Director nominees only have technology/innovation/cybersecurity expertise while 92% have risk management expertise. Get more innovation/technology/Cybersecurity expertise. ✅ Get the right incentives aligned to take the lead in the innovation game. What do you think? *********Subscribe here to get all my 🔥 takes on the Board and C-suite effectiveness. 👉🏿 https://bit.ly/3VCkqyV ******** #CEO #KSgems #TheVentureMindset #Startup #Technology #Innovation #BoardOversight Manuj Aggarwal Nitin Gaur Christopher Hetner Ilya Strebulaev Alex Dang https://lnkd.in/euXAN-9b

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Parlay Wins Spot in Mastercard Start Path Small Business Program Loan intelligence system company Parlay will join Mastercard’s Start Path Small Business program. Parlay is one of eight companies selected. Parlay’s technology complements a bank’s or credit union’s loan origination system to streamline and enhance small business loan processing. Parlay made its Finovate debut at FinovateSpring 2024 in May as part of our Sustainability & Inclusion Scholarship program. Parlay, which offers an AI-powered Loan Intelligence System (LIS) to help community banks and credit unions boost small business loan volume, is one of eight startups selected to participate in Mastercard’s Start Path Small Business program. The incoming cohort consists of startups that have shown “dedication to democratizing financial tools and providing cutting-edge services for SMEs,” Mastercard noted in a statement. The statement underscored specific functions – such as spend management, onboarding, risk monitoring, loan approvals, and embedded finance solutions – that innovative fintech startups are helping digitize for small businesses. Joining Parlay in the upcoming cohort of the program are Ballerine, Boost, CredibleX, Digi, Merge, Prime Dash, and RedOwl. The four-month program will give these startups the opportunity to leverage Mastercard’s network and subject matter expertise to forge product partnerships that help small businesses digitize their operations. Parlay’s embedded fintech software helps lenders achieve a 64% increase in approved loans and an 87% reduction in manual underwriting workload. A white-label solution that complements loan origination systems, Parlay’s technology enables lenders to generate high-quality loan packets and maximize the eligible applicant pool. The company’s LIS also offers readiness insights to help businesses improve their creditworthiness; pre-screening to identify prime, marginal, and ineligible candidate pools; and pipeline analytics to enable loan officers to monitor applicant progress and underwriting eligibility. “After a decade of work in economic development, our team realized that 77% of small businesses still struggle to access affordable capital and lack the insights need to navigate the lending process,” Parlay founder and CEO Alex McLeod said in a statement announcing the final eight startups invited to join the program. “We envision a future where community lenders, powered by Parlay’s AI-driven loan intelligence system, can get millions more small businesses approved for loans using unique, personalized insights that help both lenders and borrowers.” Parlay made its Finovate debut at FinovateSpring in May as part of our Sustainability & Inclusion Scholarship program. The program is designed to spotlight underrepresented founders, as well as startups that are tackling issues such as climate change, diversity, and financial inclusion. Scholarships provide startups with complimentary demo participation, as well...

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This is a great share American Banker. This is a common issue among banks and credit unions, which is one reason why BankShift exists. Having experience at top U.S. financial institutions, we empathize with navigating these challenges as we’ve been there before. We’re into solving problems for the toughest challenges that most financial institutions face. Please feel free to reach out. https://lnkd.in/gUvSgFYD Here are some tips to reduce frustration: 1. Implement a rigorous vendor management screening process to avoid hiring individuals without the necessary experience. 2. Ensure vendors possess intellectual property and a team with a proven track record of transforming financial institutions. 3. Move away from lengthy contracts, which benefit providers with recurring revenue but are not advantageous for financial institutions. 4. Conduct thorough technical due diligence before signing contracts to ensure compatibility across the entire institution. 5. Only deal with bundled services outside of the core systems and try not to create spaghetti (API) monsters. Note: If you already have a spaghetti monster, our digital hub (gateway) to monitor all your vendors is the cheapest start with immediate upside to your call center. 👊 #digitalfirst #transformation #creditunions #banks

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Harsh truth for Bankers: If you aren't thinking about BaaS, stop blaming the news. Your comfort with traditional banking is the problem. Here are 3 reasons why FIs launch a BaaS brand: New revenue stream ↪️ Augment net income with a lower spend New competency ↪️ Gain skill set, tech competency, and customer base Diversification ↪️ Revenue channels not heavily tied to the rate environment To stay relevant, you must evaluate the potential. Any questions? DM me "BaaS Builder" to discuss strategies to launch your own BaaS brand. --- I’m Steve Bishop.  I began my career in the tech space as a programmer and transitioned to operations and banking. I'm now working on the future of money - embedded finance. 💡Want to see more content like this? 🔗 Connect with or follow me here 🔔 Ring the bell in my profile

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Why wait for members to fire you before making a change? By adopting Shastic’s platform, your credit union gains an edge in delivering seamless experiences while staying true to its mission of member-first service. Don’t let fintechs define what convenience looks like—delight your members! https://hubs.ly/Q02WwlGh0 #AI #RPA #Banking #CreditUnion #Lending #AIWorkflowAutomation #WorkflowAutomation #Efficiency #Loan #Fintech #PeopleHelpingPeople

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Exploring the realm of ACH payments is like peering into the intricate gears of modern finance—a complex system meticulously designed for efficiency and security. Discover how ACH payments streamline transactions, reduce costs, and enhance security in the digital age. Unravel the intricacies of ACH payments in this informative deep dive. #Finance #ACHPayments #DigitalPayments #Efficiency #Security https://lnkd.in/dfENqjVa

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Walmart is poised to revolutionize payments with its upcoming pay-by-bank feature launching next year. This innovative solution will provide customers with instant transaction visibility in their bank accounts, transitioning from a 3-day delay to immediate settlement, making financial management easier and more efficient, especially for budget-conscious individuals. As the industry moves toward real-time payments, some customers will need to adapt from relying on credit cards as a financial cushion. While real-time payments bring speed and transparency, they eliminate the grace period and added fraud protection that credit cards offer. Striking the right balance between the advantages of real-time transactions and maintaining security will be essential in shaping the future of digital payments. #Walmart #Fiserv #DigitalPayments #RealTimePayments #FinancialManagement #Innovation #ConsumerPayments #Fintech

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How much fraud is hiding in a lender's credit losses? Like a snake in the grass 🐍 By the time you see it - it's too late. At Point Predictive we've conducted hundreds of data studies with different lenders and have found that early payment default is an extremely strong proxy for fraud. How strong you may ask? Frank McKenna joins me on this episode to discuss a recent retro study we completed. Our incredible Fraud team does a forensic investigation on a lender's early payment defaults just to see how many of them contain identifiable fraud flags at the time of application. In this study we found that 78% of their losses, categorized as credit losses, had some sort of material misrepresentation at the time of application. And the results of the types of fraud may shock you. Almost 4 out of 5 credit write-offs were actually fraud 😱 Most lenders focus all of their attention on #identityfraud...but this makes up a minority stake of the overall #fraudpie. The fraud breakdown was: 💸 46% Income Fraud 🏦 25% Employment Fraud 🥷 16% Identity Fraud (only 16%....) 👥 10% Straw Purchase 🚗 4% Powerbooking I like to say that fraud is preventable. There are red flags and trends to spot. The problem is you first have to understand that it exists. When a lender only focuses on identity they're missing the big picture. Although it is extremely important to know who you're doing business with, if this is your only priority you're going to keep losing a lot of money. #fraud #fraudprevention #fraudawareness #fraudstrategy #autofinance #ai

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Core banking systems: cloud vs. on-premises Technology is one of the biggest factors that gives modern banks an edge over more antiquated ones. Many FIs are reluctant to change technology that provides a foundation for their operations. They’re often afraid of new, unknown vulnerabilities that may expose them to fraud and cybersecurity issues. Even one small change could trigger much larger issues. There’s also a poorly kept secret in banking: many FIs haven’t upgraded their back-end systems in decades. At this point, such FIs don’t even know how to begin modernising and their new features and functionality are built on those antiquated systems. This creates a tangled mess resembling a house of cards. One of the most important parts of FIs’ tech stacks is the core banking system. The core underpins the most important functions of a bank and interfaces with other key systems within the organisation. Because of this technology’s importance, FIs have traditionally been hesitant to alter it, though Endava data indicates that this attitude is changing. Most respondent organisations are using a cloud-based core, but many still use on-premises software. The shift toward cloud banking cores is evident when looking at Endava’s research, which shows that 36% of respondent organisations have updated their system within the past year, and another 26% are currently in the update process. European FIs in the study are 10% more likely to be in the process of updating their core software and are slightly more likely to have upgraded in the past year when compared to American counterparts. While many of the providers at the technological forefront of banking software emphasise the importance of a SaaS model, it’s important to note that ‘cloud-based’ is not synonymous with ‘modern’, just as ‘on-premises’ doesn’t necessarily mean ‘outdated’. Some providers have merely taken the same outdated systems and put them in a cloud environment. Modern banking cores give FIs the opportunity to create new products in a shorter time, which contributes directly to the bottom line. A few of the key attributes that differentiate a modern core include: ● Real-time rather than batch processing-based ● Flexible and configurable ● Able to support broader product sets ● Built using cloud-native technologies ● Built to expose robust data via APIs and/or eventbased architectures ● Able to integrate with other modern applications via standard protocols ● Able to handle variable workloads seamlessly ● Provides both short and long-term scalability ● Provides greater cost efficiency If an FI wants to obtain these benefits and utilise such new capabilities, they must prioritise moving away from technology that may have served them in the past and toward new technology that will enable them to adapt to the demands of modern banking. Subscribe for more insights https://lnkd.in/d94JgWBU Source Endava / Backbase #corebanking #cloud #banking

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THIS. IS. HUGE! 🤯 Swift have announced plans to help FIs streamline the cross-border payments experience for their corporate customers by extending ISO 20022 across the ENTIRE payment chain 👏 💸 🌍 Activated at the click of a button, this will enable FIs to capture rich data AT THE SOURCE and marks a SIGNIFICANT milestone in delivering its strategy for instant and frictionless transactions 🏦 🤝 The plan has been developed with a working group of 25 LEADING cash management banks and 20 sector-leading corporates with the aim to introduce a universal standard that can maximise the BENEFIT of ISO 20022’s richer, more structured data 👨‍💻 Boris Lipiainen, Chief Product & Technology Officer at Kyriba, said: "We are pleased to be working alongside Swift and many others for this pilot programme. By utilising a single standard for payment initiation in ISO 20022 and enabling direct corporate access to tracker data, we are able to integrate additional services that improve the payment experience for multibank clients across the payment lifecycle. Together with Swift, we are able to reduce friction, streamline operations, and increase value for our customers." Read more on the link below! 👇 Thierry Chilosi MUFG Noritoshi Murakami BNP Paribas Damien Godderis DBS Bank HSBC Societe Generale FIS Citi Santander UniCredit Bank of America BBVA Barclays #swift #crossborderpayments #iso20022 #corporatepayments #digitalpayments #fintech #fintechnews #financialservices

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Banks and credit unions have enough on their plates without trying to build out new card payment flows. But—there’s a huge opportunity for them in offering card-based instant transfers. Pull-from-card and push-to-debit transactions are growing, serve many popular use cases, and can drive engagement, grow deposits, and generate revenue. Regardless of the benefits, most regional and community financial institutions lack the capacity to become principal members of Visa Direct and MasterCard Send. Moov takes on the complexities involved and makes it easy for financial institutions to offer these kinds of transfers—and a lot more—through a single, simple API integration. Read more from Matthew Thomason about how we make it happen.  #fintech #payments #banking https://lnkd.in/gUX6zJQp

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According to a recent article on NerdWallet, the classic wallet is predicted to become as outdated as typewriters. 📱Not just payment methods but loyalty program cards, event tickets, transportation passes, and even ID cards can be stored on mobile devices. 🚀 Gen Z is embracing this technology, with 10.3% “rarely or never” carrying a physical wallet when leaving the house. - I personally never have a wallet. I leave my house phone in hand, and that's it. 🤷🏻‍♀️ How do you jump on the trend as a biller? - ACI Walletron offers secure, real-time bill payments. - Flexibility for consumers—offer their preferred payment method! - Stay ahead of the curve with ACI Worldwide Walletron. 💡💰 📖Read the full article here: https://lnkd.in/eM348guj 📺Learn more about Walletron here: https://lnkd.in/exKV6ekS #DigitalWallets #CreditCards #FinTech #GenZ #Fintech #DigitalPayments

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10x Banking have launched a NEW category of core technology...META CORE! 🚀 👏 🏦 10x’s new platform allows banks AND system integrators for the first time to focus dev resource only on high-value code by abstracting away common product elements as well as the core ledger ITSELF. 🌐 💹 As a result, the new 10x platform only requires a bank to create and maintain as little as 2,000 LINES of code for a SINGLE customized banking product – up to a 10x reduction in code base compared to neo core platforms and up to a 10,000x reduction compared to legacy core 👨‍💻 Antony Jenkins CBE, 10x Banking founder and CEO said, “10 years ago banks knew they had to go on a journey of transformation. Good progress has been made in some areas but one of the challenges that has emerged is that even the newer technologies come with their own set of problems. The ‘meta core’ provides banks with the best of all worlds: flexibility on the one hand and unlimited scalability on the other hand. The benefits are much faster speed to market, enterprise-grade security, the ability to unlock data for AI, and a lower cost base. Neo cores have created part of the solution, but we have taken it to the next level.” “From my experience, running a bank is all about managing risks, and we’ve designed our meta core to specifically remove the key risks that banks face when upgrading their core. 10x Banking is the first company in the world to offer a ‘meta core’, and for the first time gives banks a clear roadmap to full transformation.” Find out more on the link below! 👇 Alice Thomas ThoughtLDR Frederico Venturieri Nicole Sanders Okan Ozaltin Arianne Rosmolen-Dickinson #10xbanking #fintechnews #digitalbanking #corebanking #AI #cloudbanking #bankingtechnology #fintechnews #digitalroadmap

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As instant payments continue to gain popularity, Walmart joins the real-time payments revolution. Another example of the transition of card payments & ACH payments to the real-time networks, but this time its a Point-of-sale example. Who benefits more from Walmarts support of Instant Bank Payments? Check out the following article to learn more. #Realtimepayments #PaymentsRevolution #FedNow #TCHRTP https://lnkd.in/gjuPzNZN

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Introducing the next generation of in-person payments for enterprise In-person payments is known for clunky hardware and legacy systems. Adyen enabled platforms to change the game for SMBs; we’re now setting a new standard in the enterprise space. Meet the SFO1, the most advanced payment device ever built for enterprise. Here's what it looks like 🔥 ➡ This is Adyen’s first proprietary multimedia countertop terminal. It runs on Android, making it a multi-purpose, “all-in-one” device for a range of business needs. ➡ Each transaction enhances a shopper’s profile; the SFO1 takes this further by making it easy and intuitive for shoppers to share more data in-store. ➡ The SFO1’s comes with a high-resolution 8-inch screen that not only optimizes checkout but also elevates customer engagement via customizable marketing and promotions, all managed remotely without dev work. ➡ During its pilot phase, the SFO1 already supports a wide range of features, including tokenization, QR code wallets, marketing activations, and more. Expect even more functionality later this year and into 2025. ➡ With Adyen Giving built in, businesses can effortlessly offer 1-click donations at checkout, with 100% of the donation going to the cause and no extra work for finance teams. ➡ We’re partnering with top-tier POS technology providers like Oracle, Microsoft, Teamwork, Cegid, PredictSpring, Aptos and many others to ensure seamless integration of the SFO1’s advanced features. But that's not all, we have two more major announcements alongside the SFO1 launch! -> Adyen is the first global PSP to launch Klarna’s in-store solution and roll out Alipay+ worldwide. -> We are expanding Tap To Pay on Android support across Europe, UAE, Hong Kong, Malaysia, Australia and New Zealand, now offering the largest Tap To Pay coverage for both iPhone and Android. We strive to be the most customer-focused financial technology platform in the world. None of these advancements would be possible without deep collaboration with our customers. We are not in the business of guessing the next big thing in payments. We listen to our customers and ship products based on what truly moves the needle for them. No exceptions. Just relentless customer focus and ruthless prioritization.

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Ever noticed those sneaky hidden fees in credit card processing? For #merchants, understanding the difference between processing levels—Level I, II, and III—can make a significant impact on transaction costs. Qualpay simplifies this by capturing the extra transaction data needed to qualify for lower interchange rates. Here’s a quick rundown: ➡️ Level I: Basic info, for general consumer transactions—easier but higher fees. ➡️ Level II: A bit more detail, perfect for #B2B transactions with lower fees. ➡️ Level III: The most data-intensive, ideal for #B2G and B2B payments with the best savings. Through Qualpay’s Savings Challenge, we’ll analyze your processing statement to ensure you’re set up to capture the most savings possible. Because sometimes, a few extra details can lead to serious cost reductions. Ready to optimize your savings? Learn more here: https://lnkd.in/g9RXxye5

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In a recent interview with PYMNTS, Thredd CEO Jim McCarthy discussed the shift in the payments industry as merchant acquirers expand into issuing to meet the growing demand for specialised payment solutions. The rise of PayPal, Square, and other payfacs has demonstrated that digital-first solutions are the future. By embracing embedded finance and APIs, companies can offer innovative services like virtual cards and BNPL, transforming how payments are handled. This shift is a game-changer for merchants and financial institutions alike. By adapting to this new model, businesses can deepen customer relationships while streamlining cash flows and compliance. The future of payments lies in flexibility and innovation, and those who fail to prepare will face disruption. What do you think about how embedded finance will impact the payments industry? Is the four-party model still relevant, or is it time for a complete overhaul? #PaymentsInnovation #EmbeddedFinance #FinTech #DigitalTransformation #VirtualCards #BNPL #MerchantServices #PayFacs #FutureOfPayments

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