FinWise Insights: a Fintech, Payments, and Banking Newsletter September 2024
FinWise Bank
Leading the Banking and Payments Evolution for Fintech Brands (NASDAQ: FINW)
Hey Fintech Friends! In this edition of our FinWise newsletter, we’re excited to share a variety of top hits ranging from recent announcements, product and partner news, to insights from your favorite industry experts. Ready to Fly with FinWise? ??
News recap.
Latest Podcast(s)
News from FinWise Bank's Website
Partner spotlight.
FinWise is proud to announce its newest lending partner, Plannery, Inc., a financial wellness platform offering lending to an interesting niche market. Plannery’s platform was exclusively built with healthcare professionals in mind and is used by hospital systems as a way to offer their employees an option to become and stay debt free. Plannery is based out of San Mateo, CA and in partnership with FinWise, offers an unsecured, closed-end loan that allows its borrowers to consolidate their debt at below market interest rates where repayment is collected as a payroll deduction, eliminating missed payments and late fees. They target the more than 22 million healthcare professionals, which represents a $60B market opportunity and distribute their services as a benefit through hospitals and strategic partners.
The FinWise/Plannery loan product had a successful launch with the Phoebe Putney Health System , based in Albany, GA. They saw high engagement among their employees validating a real need for the product and recently expanded their product offering with FinWise to include a personal loan to the program, providing flexibility and access to additional funds for borrowers who need it. Plannery is continuing to evaluate their offerings to eventually expand to other states and add more hospitals and healthcare systems to their platform.
Welcome aboard, Plannery !
Product spotlight.
MoneyRails, the new FinWise payments hub, will bring multiple payment rails together under one application, offering users a single destination to send monetary transactions. MoneyRails will include ledgering technology, providing a strong foundation for controls, standing instructions, and connectors for 3rd party integrations. MoneyRails will support multiple payment rails, including ACH, Wire, RTP, FedNow, Mastercard RPPS, Visa Direct and can also support card servicing capabilities.
MoneyRails will be the basis for new product development at FinWise, for sponsoring new types of fintechs such as neo banks, as well as being able to reach new non-fintech clients in need of high volume payment processing.?? Here’s an overview of how:
Wise Up with FinWise Bank. -??
Is lowering fees on FedNow the best solution for the Federal Reserve to address current needs in the industry??
In this section of our newsletter, we help readers “Wise-Up” by highlighting an article relevant to the banking and fintech industries that caught our attention.? We will dig into the topic a bit and offer a point of view, because we always have an opinion!? We enjoy a good dialog, so if you wish to reach out to discuss this topic or suggestions for other key industry announcements that deserve our attention, please subscribe to our email newsletters .?
In this edition, we chose to comment on an article from PaymentsDive that reported the Federal Reserve is considering lowering fees on the FedNow real-time payments network. The article highlighted:?
The Federal Reserve may consider reducing fees for its FedNow real-time payments system in the future after the service attracts more financial institution participation, or as it faces competition, according to a Wolfe Research report last month. Wolfe Research analyst Darrin Peller interviewed Dan Baum, FedNow’s head of payments product, on a webcast last month for the research firm’s clients and issued a report on it July 21. “Regarding future pricing, Dan noted that the Fed is offering initial discounting to get [financial institutions] on the platform and contributing volume, but that it could lower fees over time as more banks join the platform or due to competition,” Peller wrote in the report provided to Payments Dive.??
It is a bit curious that the Fed would lower prices so soon after launching. FedNow is still a relatively new payment rail (just over a year old) in comparison to other payment options, it offers nearly the same wholesale pricing as the private sector real-time payments rails, RTP, offered by The Clearing House. It is far less expensive than options such as payment cards, Visa Direct, Mastercard Send and certainly wire transfers.?
领英推荐
Industry Recognition as a Top-Performing Bank.
Finwise Bancorp stock soars to 52-week high from Investing.com
Not to toot our own horn too much, but we are proud of our most recent awards. Thank you to all our clients and partners who helped make this possible!
Thank you to all who contributed to this article!
Thank you Jason Mikula , Christienne Genaro , Stanley F. Orszula , and Daniel Baum at Federal Reserve Bank of Atlanta and Darrin Peller for your take on FedNow and to everyone including Robert Keil , Sarah Grotta , Verena Rasmussen , Juan Arias , Nathan Mills , and Nick Chiappetti for taking time out of your busy day to help us with the launch of our first newsletter!
Be sure to hit that subscribe button to get the next edition of FinWise Insights: a Fintech, Payments, and Banking newsletter. Want the newsletter sooner? Subscribe to our email newsletters .
Connect with us.
We enjoy a good dialog, so please leave a comment below or join us at an upcoming event.
Upcoming Events
Join us on a FinWise Podcast found here:
About FinWise Bank
FinWise provides Banking and Payments solutions to fintech brands. 2024 is a key expansion year for the Company, as it diversifies its business model by launching and incorporating Payments Hub and BIN Sponsorship offerings into its current platforms.
Its existing Strategic Program Lending business, done through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Real Estate, and Leasing, which provide optionality for disciplined balance sheet growth.
Through its compliance oversight and risk management-first culture, the Company is also well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance.
Hey FinWise Bank, the FinWise Insights newsletter sounds like an exciting and informative read! It's always great to stay updated with the latest in fintech, payments, and banking.