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New Innovative Payments Association guide designed to help financial institutions that work with fintechs navigate the complex world of regulatory compliance.
The Innovative Payments Association (IPA) recently released “IPA’s Guide to Developing a Bank-Fintech Regulatory Compliance Plan,” which helps financial institutions that work with fintechs navigate the complex world of regulatory compliance. “This guide is a big step forward in helping financial institutions and fintech companies create partnerships that are both innovative and compliant,” said Brian Tate, President and CEO of IPA. “At IPA, we believe regulatory compliance should not hinder innovation. Instead, it should be a framework that supports the development of new and exciting financial products. This guide provides the tools needed to build those frameworks.” As financial institutions work more with fintech companies, regulatory compliance is more important than ever. This guide offers a detailed look at the critical legal and regulatory issues that banks and fintechs must address. It's an essential resource for any organization looking to innovate in the financial sector while meeting strict regulatory requirements. It covers vital topics, including:
The guide is not meant to replace legal advice but to offer a framework to help companies develop comprehensive compliance programs, which protect both their interests and those of their partners and customers. About The IPA The Innovative Payments Association (IPA) is the leading voice of the electronic payments sector, including prepaid products, mobile wallets, and person-to-person (P2P) technology for consumers, businesses, and governments at all levels. The IPA encourages the efficient use of electronic payments, cultivates financial inclusion through educating and empowering consumers, and represents the industry before legislative and regulatory bodies. To learn more about IPA, visit ipa.org or follow us on LinkedIn. The Innovative Payments Association (IPA) has released its 2024 Mid-Year Report, providing a snapshot of the association's advocacy efforts, regulatory engagement, and industry leadership during the first half of the year.
As the payments industry navigated a rapidly evolving regulatory landscape, the IPA remained focused on promoting a stable environment that supports innovation while protecting consumers. The report highlights the association's work on key issues including earned wage access (EWA), open banking, interchange fees, overdraft and nonsufficient funds (NSF) fees, customer identification requirements, and emerging state-level legislative proposals. The report also details the IPA's ongoing engagement with policymakers, regulators, and industry stakeholders through comment letters, thought leadership, media outreach, and educational programming. In addition, it highlights member resources and events designed to help payments professionals stay informed on the latest developments impacting the industry. With regulatory activity continuing to accelerate, the IPA remains committed to serving as a trusted voice for the payments ecosystem and ensuring that innovation, financial inclusion, and consumer choice remain central to policy discussions. Download the full 2024 Mid-Year Report to learn more about the IPA's advocacy efforts, accomplishments, and the issues shaping the future of payments. The IPA calls for scrutiny of the CFPB's new proposal, which would misclassify EWA products and could affect nearly 56 million Americans.
The Innovative Payments Association (IPA) calls for scrutiny of the Consumer Financial Protection Bureau’s (CFPB) proposal on earned wage access (EWA) rules. The CFPB’s decision to misclassify EWA products could affect nearly 56 million Americans who rely on EWA services to securely access a portion or all of their already earned wages before payday. The CFPB’s erroneous declaration that EWA products are credit, regardless of how they are structured, will limit services and curtail competition in the marketplace. Today’s decision openly contradicts the steps former Directors Richard Cordray and Kathy Kraninger took to expand EWA services to all Americans who may not have easy access to credit. “EWA products are essential tools for American workers facing income volatility and mismatches between paydays and bills,” said IPA President and CEO Brian Tate. “We are very concerned that the CFPB’s proposed interpretations could severely limit access to short-term liquidity for vulnerable workers.” It’s also important to highlight the CFPB’s “extensive” research in developing their proposal. According to the CFPB, the agency only “researched” eight firms. It’s a fact that employers have significant control over when workers are paid. According to the Bureau of Labor and Statistics, 73% of businesses pay biweekly, semimonthly, or monthly. This extended wait between paychecks can lead to financial strain for many workers. It’s clear when workers can access their earned wages on their own terms, they can better manage their finances. A 2023 Financial Health Network report highlights this challenge: “more than four out of five (84%) Americans were not financially healthy at some point between 2018 and 2022.” This data emphasizes the need for more solutions, not fewer. Furthermore, a Harvard study revealed that “across four EWA business models, costs were significantly cheaper than payday loan fees.” The study also found that “42% of EWA users ... no longer use alternative financial services since they started using EWA, while 28% indicated that they use them less.” “Given today’s economic challenges, individuals need more control over their finances, including access to their earned wages,” said Tate. “For many American workers, EWA is a crucial resource to access their rightfully earned funds for unexpected expenses like car repairs or medical bills.” About The IPA The Innovative Payments Association (IPA) is the leading voice of the electronic payments sector, including prepaid products, mobile wallets, and person-to-person (P2P) technology for consumers, businesses, and governments at all levels. The IPA encourages the efficient use of electronic payments, cultivates financial inclusion through educating and empowering consumers, and represents the industry before legislative and regulatory bodies. To learn more about IPA, visit ipa.org or follow us on LinkedIn. Bank-fintech partnerships have become a cornerstone of today's financial services ecosystem, helping millions of Americans access convenient, secure, and innovative payment solutions. In testimony submitted to the House Financial Services Subcommittee on Financial Institutions and Monetary Policy, the Innovative Payments Association (IPA) highlighted the important role these partnerships play in expanding financial inclusion, supporting economic growth, and advancing payments innovation.
The testimony explains how prepaid account infrastructure helped lay the foundation for many of the payment products consumers use every day, including mobile wallets, peer-to-peer payment services, fintech debit accounts, and digital banking solutions. These technologies have created new opportunities for consumers to manage their finances while providing greater convenience and flexibility. The IPA also emphasized the role fintech products play in bringing underserved consumers into the financial mainstream. Mobile banking, prepaid cards, and digital payment tools have helped reduce barriers to financial services for millions of Americans, particularly those who are unbanked or underbanked. These innovations became especially important during the pandemic, when digital payments helped consumers access funds and conduct financial transactions safely and efficiently. Looking ahead, the IPA urged policymakers to support a regulatory environment that encourages innovation while maintaining strong consumer protections. Bank-fintech partnerships continue to deliver valuable financial tools that help consumers manage their money, access earned wages, make payments, and participate more fully in the modern economy. By fostering collaboration between traditional financial institutions and technology companies, policymakers can help ensure that consumers continue to benefit from a competitive and innovative payments marketplace. Download the full IPA statement to learn more about the benefits of bank-fintech partnerships, the role of prepaid infrastructure in payments innovation, and how these relationships help expand access to financial services. In a recent testimony before the House Financial Services Subcommittee, the Innovative Payments Association (IPA) highlighted the crucial role of fintech partnerships in expanding access to financial services. The IPA emphasized the benefits of these collaborations for both banks and fintech firms, as well as their positive impact on consumers.
Key Benefits of Bank-Fintech Partnerships
Conclusion The IPA's testimony underscores the importance of fostering a collaborative environment between banks and fintech firms. By working together, these entities can leverage their respective strengths to provide innovative financial solutions that benefit consumers and promote financial inclusion. |
Media ContactHeather McElrath Archives
July 2026
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