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Leading the FI Pack with Earned Wage Access
The market for financial services has never been more competitive. Digital banks, neobanks, challenger banks—even merchants like Walmart, groceries, and drugstores—and other fintechs are all offering financial services in a less regulated setting than that of financial institutions (FIs).
Offering digital services is of paramount importance to financial institutions, but it can be very hard for FIs to acquire the technology and talent they need without having it funneled toward new regulatory and compliance needs. As a result, many FIs are partnering with fintechs to outsource the development of innovative payments technology.
Earned wage access (EWA) is one of the hottest new features that fintech and FI partnerships are adopting. EWA is the ability for employees or contract workers to request immediate access to some of the pay they have already earned.
To learn more about EWA and how financial services providers can participate in the on-demand pay movement, PaymentsJournal sat down with Rob Nardelli, Director and Business Development Lead for Strategic Partnerships at DailyPay, and Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group.
PaymentsJournalLeading the FI Pack with Earned Wage AccessPaymentsJournal Leading the FI Pack with Earned Wage AccessPaymentsJournaljQuery(document).ready(function ($){var settings_ap39401078 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"39401078",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_377836_28",settings_ap39401078); }catch(err){ console.warn("cannot init player", err); } });
Fintech/FI Partnerships Are the Future
After the 2008 Great Recession, the banking industry saw a massive regulatory overhaul. “Compliance became critical,” said Nardelli. Know Your Client (KYC), the Office of Foreign Assets Control (OFAC), and anti-money laundering (AML), according to Nardelli, “ruled the day, and in some instances, at the expense of the client/customer experience. Innovation became challenging, to say the least.”
Meanwhile, fintechs with fewer regulatory hurdles were filling the gap in customer experience enhancement. Now, semi-post-pandemic,
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By The PaymentsJournal PodcastThe market for financial services has never been more competitive. Digital banks, neobanks, challenger banks—even merchants like Walmart, groceries, and drugstores—and other fintechs are all offering financial services in a less regulated setting than that of financial institutions (FIs).
Offering digital services is of paramount importance to financial institutions, but it can be very hard for FIs to acquire the technology and talent they need without having it funneled toward new regulatory and compliance needs. As a result, many FIs are partnering with fintechs to outsource the development of innovative payments technology.
Earned wage access (EWA) is one of the hottest new features that fintech and FI partnerships are adopting. EWA is the ability for employees or contract workers to request immediate access to some of the pay they have already earned.
To learn more about EWA and how financial services providers can participate in the on-demand pay movement, PaymentsJournal sat down with Rob Nardelli, Director and Business Development Lead for Strategic Partnerships at DailyPay, and Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group.
PaymentsJournalLeading the FI Pack with Earned Wage AccessPaymentsJournal Leading the FI Pack with Earned Wage AccessPaymentsJournaljQuery(document).ready(function ($){var settings_ap39401078 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"39401078",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_377836_28",settings_ap39401078); }catch(err){ console.warn("cannot init player", err); } });
Fintech/FI Partnerships Are the Future
After the 2008 Great Recession, the banking industry saw a massive regulatory overhaul. “Compliance became critical,” said Nardelli. Know Your Client (KYC), the Office of Foreign Assets Control (OFAC), and anti-money laundering (AML), according to Nardelli, “ruled the day, and in some instances, at the expense of the client/customer experience. Innovation became challenging, to say the least.”
Meanwhile, fintechs with fewer regulatory hurdles were filling the gap in customer experience enhancement. Now, semi-post-pandemic,