​IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.

​IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.

If your LinkedIn feed is anything like mine, you’ve seen an uptick in people looking for jobs and companies announcing cuts.

These are likely reactions to uncertainties in the economy and the political landscape. The problem is that they are the wrong reaction.

My thinking on this is informed by my time at the Graduate School of Banking at the University of Wisconsin, Madison. I was invited to attend when I was a reporter for American Banker. (The industry wanted to make sure that the reporting covering it had some knowledge of how things worked.)

One of the professors castigated the students for having the instinct to cut every time there was a problem or downturn. As he put it, companies might save some money by making cuts, but they don’t earn returns. Companies earn returns by investing.

We can see the results of not investing in the payments industry when we read the consent orders that have been filed against issuing banks. They failed to invest in adequate and qualified staff to manage partners and programs. They failed to invest in adequate systems to manage risks, identify customers, or even maintain ledgers. They failed to invest in proper oversight of their partners.

Banks that want to be in the innovation business are going to need to think of themselves as investors in the fintech sector. The difference is that the investments they make will not be monetary investments in third party companies. Instead, the dollars will need to be spent on themselves for technology, for additional people, and for training the people they have.

Two challenges will face the institutions that do this.

First, they will need to develop a strategy that justifies a longer time horizon for return on investment. In a world dominated by quarterly earnings calls, this can be tough. But having a larger goal can help directors and investors follow the money.
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Second, they will need to get comfortable not following crowd and cutting when times are tight. It can be difficult to take a different path than colleagues and competitors. But innovation comes from finding opportunity where others see problems.

Earned Wage Access (EWA) is becoming more and more popular among employees and employers alike to provide financial flexibility and stability. EWA allows employees to access a portion of their earned wages before payday, helping them to cover unexpected expenses or bridge financial gaps without relying on high-interest payday loans or credit cards. 

While EWA can provide significant benefits to employees, it is essential for employers to ensure that they are implementing these programs in a compliant and responsible manner. Compliance with federal and state laws is crucial to protect both employees and employers from potential legal issues.  

One important aspect of compliance with EWA programs is ensuring that employees are informed about the terms and conditions of the program. Employers should clearly communicate how EWA works, including any fees or charges associated with accessing their wages early. Transparency is key to building trust and ensuring that employees understand their rights and responsibilities. 

In addition to transparency, employers must also ensure that their EWA programs comply with all relevant labor laws and regulations. This includes ensuring that employees are not being charged excessive fees for accessing their wages early and that the program does not violate any wage and hour laws. Employers should work closely with legal counsel to review their EWA programs and ensure that they are in compliance with all applicable laws. 

Furthermore, employers should also consider the potential impact of EWA programs on employees' overall financial well-being. While EWA can provide short-term financial relief, it is not a long-term solution to financial instability. Employers should encourage employees to use EWA responsibly and provide resources for financial education and counseling to help employees improve their financial literacy and management skills. 
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By ensuring compliance with laws and regulations, promoting transparency and responsible practices, and providing support for employees' financial well-being, employers can ensure that their EWA programs are a positive and valuable addition to their benefits offerings. Earned Wage Access can be a powerful tool for improving employee satisfaction and retention, but it is essential to implement these programs in a way that prioritizes compliance and responsible practices. ​

IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.