Jason Mikula’s Post

ACH processing serves as a light of financial innovation, providing businesses with a secure, efficient, and cost-effective alternative to traditional payment methods. By enabling direct bank-to-bank transactions, ACH processing cuts down on processing fees, reduces error rates, and significantly lowers the risk of fraud. The benefits of ACH processing extend beyond mere cost savings. It empowers businesses with faster access to funds, improved cash flow visibility, and streamlined reconciliation processes. https://avpsolutions.com/ #ACHProcessing #FinancialInnovation #DigitalPayments #CostEfficiency #BankingSolutions #FraudPrevention #CashFlowManagement #BusinessGrowth #PaymentSolutions #OperationalEfficiency #AVPS #AVPSolutions #Smallbusiness

How CRED is looking to grow in the financial space With more than 90% of its revenue currently derived from payments, lending, and insurance, the company is steadily building a pathway to profitability. #ETBFSI #BFSI #CredGrowth #Fintech #FinancialServices #PaymentsIndustry #LendingSolutions #Insurtech #Profitability #BusinessGrowth https://lnkd.in/gnYymRqw

The recent challenges faced by Synapse and its customers highlight a critical issue in the fintech and banking-as-a-service (BaaS) sectors: safeguarding of client funds.   In Europe and Asia, the client asset protection and safeguarding requirements for e-money institutions are in place to protect client funds. These regulations mandate that firms segregate client funds from their operational funds, ensuring quick and efficient returns to customers, even in the event of insolvency.   However, similar regulations are not yet widespread in other regions, in particular the United States. Last week, the Federal Deposit Insurance Corp. acknowledged this lack in regulation for Fintechs with Chairman Martin Gruenberg saying the FIDC “may consider regulatory proposals in this regard.”   “The Synapse failure really illustrated the risks to banks and depositors when banks rely on third parties to be the conduit for deposits and the need for adequate record-keeping so that the banks know who the ultimate depositors are.” The article goes on to stress the need for real-time reconciliation and how a collapse like this could be avoided with the right processes in place.   As fintech continues to disrupt financial markets globally, the importance of safeguarding cannot be overstated.   Industry leaders and regulators across the world must recognise the value of these protective measures and consider adopting best practices to ensure customer funds are protected across the globe.   Safeguarding client funds isn't just a regulatory requirement - it's a commitment to trust and stability in the financial ecosystem.   #BaaS #fintech https://lnkd.in/e4bNTPrG

The Synapse story is an interesting real life case study of the consequences of what can happen when inadequate standards of reconciliation and reporting processes undermine risk controls in financial services. In non-USA jurisdictions, for example the UK, EU and Canada, we are seeing regulatory requirements like Safeguarding being enforced partly as a way to avoid these types of situations. Interestingly however, I am also increasingly speaking to clients who are looking to tighten up reconciliations and reporting in a similar way in the name of best practice. I am always happy to take the time to talk to anyone about how the AutoRek platform can assist with this, so if you are interested learning more feel free to drop me a message. #baas #safeguarding #reconciliations #reporting #control

Today, we submitted a comment letter responding to the joint banking regulators’ request for information on #bank-#fintech partnerships. We called on regulators to promote and reinforce these partnerships, as they play a vital role in serving consumers, small businesses, and entrepreneurs. ➡ Bank-fintech partnerships are why millions of Americans benefit from innovations like bank accounts with no overdraft fees, faster payments, and lower-cost credit. These partnerships are safe and regulated and have a long history of driving competition, unlocking innovation, and providing choice and financial benefits. ✅ We urged regulators to use information collected through the RFI to holistically evaluate the benefits of bank-fintech partnerships and reconsider the basis and direction of two proposed rules – the Federal Deposit Insurance Corporation (FDIC)’s brokered deposit and custodial deposit accounts rulemakings – that could cut off access to innovative financial services for tens of millions of consumers, small businesses, and entrepreneurs. Read our full comment letter here 🖇 https://lnkd.in/eg4PGAQh

Just 10 days left for the T+1 settlement guideline to kick in for the #P2PLending industry. Some of the players have already started to get compliant while some haven't even bothered and gone back to the regulator to make a change. They claim it's too difficult to implement T+1 settlement timeline. Maybe it is, maybe not. T+1 is certainly a bit harsh but its the new reality that RBI expects. Hear from Vineet Singh from Castler (Largest Escrow Fintech) on his thoughts around the T+1 settlement. Watch full video here: https://lnkd.in/dsrW8NSa #p2p #p2pindustry #rbi #fintech #escrow #castler ALT Investor

Todd H Baker and I spotted a shocking line in this statement by the Synapse bankruptcy trustee in relaying a statement from the Federal Reserve in court last week: “The Federal Reserve understands that the debtor maintains relationships with various fintech platforms whose direct customers use these platforms to deposit funds. The Federal Reserve understands that the debtor has a deposit relationship with Evolve. The Fed is the primary federal banking agency responsible for the supervision and regulation of Evolve Bank. In this role it conducts examinations of the bank and does so on a very regular basis to assess its safety and soundness and has the legal authority to address regulatory violations of the banking laws as appropriate. THE FEDERAL RESERVE DOES NOT THOUGH SUPERVISE OR REGULATE FINTECH COMPANIES, such as the debtor, nor does it mediate or have the authority to mediate disputes among commercial entities.” It is not clear whether this line from the hearing transcript is part of the Fed’s statement or gloss supplied by the trustee. But it sure doesn’t square with the assertion of authority in the Interagency Guidance on Third-Party Relationships: “When circumstances warrant, AN AGENCY MAY USE ITS LEGAL AUTHORITY TO EXAMINE FUNCTIONS OR OPERATIONS THAT A THIRD PARTY PERFORMS ON A BANKING ORGANIZATION’S BEHALF. Such examinations may evaluate the third party's ability to fulfill its obligations in a safe and sound manner and comply with applicable laws and regulations, including those designed to protect customers and to provide fair access to financial services. The agencies may pursue corrective measures, including enforcement actions, when necessary to address violations of laws and regulations or unsafe or unsound banking practices by the banking organization or its third party.” Tune in tomorrow to Radically Clear to hear more from Todd, Phil Goldfeder, and me. Link in comments. #Synapse #FederalReserve #EvolveBank

Question 🧐 👉 What do you do when you are slammed with inbound, and excitement over your new Global Accounts? 🥹 …. Well you guessed it, answer them! Dive into our latest blog post and learn more about: ✅ Global Account Details ✅ Payment Rails Available ✅ Onboarding Regions ✅ Prohibited and Restricted Industries #globalpayments #embeddedfinance #fx #fintech #routefusion #globalexpansion #payments #localpayments

🚀 Transforming Trade Finance with Escrow Management: A Game Changer for NBFCs, Banks, and MSMEs 🚀 In the intricate world of trade finance, the flow of funds between lenders such as NBFCs and banks, and borrowers, particularly MSMEs, demands an unprecedented level of precision, security, and transparency. At ProFinTech, we're pioneering a robust solution that addresses these critical needs through the strategic use of escrow accounts. 🔒 Why escrow? The answer lies in the controlled, traceable, and fully managed environment it creates, eliminating the complexities and risks associated with traditional 1-1 transactions. By using escrow accounts, ProFinTech ensures that every penny is meticulously tracked and only moves under agreed-upon conditions. This not only enhances the confidence of all parties involved but also fortifies the financial ecosystem against fraud and mismanagement. 🌟 For senior management at NBFCs, banks, and MSMEs, partnering with ProFinTech means stepping into a future where financial operations are streamlined, outcomes are predictable, and integrity of transactions is never in question. We understand the stakes are high, and the need for a fail-safe system is greater than ever. 🤝 Join us at ProFinTech, where we are not just facilitating transactions—we are transforming them. Secure, transparent, and efficient financial management is not just an aspiration; it's our reality. Let's collaborate to redefine the potential of trade finance. 🔗 Discover how our escrow solutions can elevate your operations. Connect with us today! #TradeFinance #FinancialServices #EscrowManagement #ProFinTech #InnovationInFinance #NBFC #MSME #BankingSector

Creating traceability and establishing Cash-flow controls have been the #1 ask of partners in Trade Finance. ProFinTech is pleased to build these pillars of Trade through a pioneering yet simple escrow management process. Talk to our financing experts on how this can help you elevate your trade financing strategy!