In today’s payments news, the Consumer Financial Protection Bureau (CFPB) has proposed to boost the number of smaller banks and credit unions (CUs) that would not be governed by rules tied to international money transfers. Also, federal banking regulators reportedly support using alternative methods to determine creditworthiness to help high-risk individuals get loans. And Google CEO Sundar Pichai will take over as Alphabet’s new CEO.
Google CEO Sundar Pichai Takes The Reins At Alphabet
Google CEO Sundar Pichai will take over as Alphabet’s new CEO, as well as retain his job at Google, per a blog post by founders Sergey Brin and Larry Page. The post read, “Going forward, Sundar will be the CEO of both Google and Alphabet. He will be the executive responsible and accountable for leading Google, and managing Alphabet’s investment in our portfolio of Other Bets.”
CFPB Proposal On Remittances Offers Exemptions For Banks, CUs
The Consumer Financial Protection Bureau (CFPB) has proposed to boost the number of smaller banks as well as credit unions (CUs) that would not be governed by rules tied to international money transfers. The proposal would extend an exemption that lets these FIs estimate the fees as well as costs associated with such global fund flows, since providing precise figures might prove to be costly task.
Regulators Support Alternatives To Assess Creditworthiness
Federal banking regulators reportedly back using alternative methods to measure creditworthiness to help high-risk individuals attain loans. They support the use of alternative data such as the cash flow of borrowers in lieu of using traditional credit scores. The regulators said this approach “may help firms evaluate the creditworthiness of consumers who currently may not obtain credit in the mainstream credit system.”
Investors Sour On Postmates, Triggering Layoffs
Postmates has reportedly laid off dozens of employees and closed its Mexico City office. The food delivery company, which has approximately 1,300 employees, started laying off people this week, and not only in Mexico City. Employees were axed in San Francisco in addition to Nashville, Los Angeles and other offices.
Recurring Payments’ Supporting Role In Keeping Customers Loyal
A frictionless payment experience is vital for any subscription company to keep customers. Many subscription businesses risk losing subscribers to involuntary churn that results from outdated billing information or expired credit cards. The Global Recurring Payments Tracker Deep Dive explores the challenges that involuntary churn presents to subscription merchants as well as outlines the steps businesses can take to face these challenges head-on.
Mastercard: Instant Deposits Close SMB Cash Flow Gap
There are hiccups from the time it takes for a completed sale to translate into cash in the bank, especially for smaller firms. In an interview with Karen Webster, Silvana Hernandez, senior vice president of digital payments and labs at Mastercard, said a joint study shows that the ability to manage cash flow is a constant concern for most small businesses.
“Cash flow is critical for businesses of all sizes, but especially for small businesses, because they struggle to have access to capital, and they also struggle to build and maintain cash reserves,” she told Webster. “So cash flow is really something business owners lose sleep over.”
The availability of rapid settlement, however, may improve cash flow. It also has the intangible impact of boosting morale. Good cash flow visibility also translates into stronger relationships with employees as well as vendors.
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