In Congress, anything that helps small businesses typically comes with bipartisan support. But section 1071 of Dodd-Frank is a little complicated. It is another section of Dodd-Frank that is still in the process of being implemented (the other being 1033). And many in Congress don’t like it. So what is Section 1071? At first glance, it seems pretty innocuous. Section 1071 simply requires small business lenders to report how much they are lending to minority, women and LGBTQ-owned small businesses. However, these factors cannot influence lending decisions. Both the House and Senate passed a bill that would remove Section 1071 but President Biden vetoed the measure. Now, the rule is set to go into effect in 2024 and the first compliance deadline is October 1, 2024. Although there is a preliminary injunction to the rule based on a lawsuit challenging its validity. Banks do not like this new requirement at all as it will require new systems and a great deal of expense. Regardless of all of this, small businesses still need more access to capital. And minorities need it more than most. Editor’s note: This is our last newsletter of 2023. Thanks for being part of our community. We would like to wish all our readers a happy and relaxing holiday season and we will see you again on January 2, 2024. Featured CFPB 1071 small-business loan rule to force tech upgrades CFPB 1071 small-business loan rule to force tech upgrades
By Penny Crosman Many banks, especially smaller ones, will have to rethink how they lend to small businesses and automate manual processes. From Fintech Nexus
> Brazil’s fintechs, banks dive into crypto as demand heats up By David Feliba Mexican fintech Kapital raised $40 million in a series-B funding this month and $125 million in debt financing to expand to new markets. > Long Take: Deciphering Solana’s remarkable 700% rise, and why Ethereum lags behind By Lex Sokolin Banks and credit unions need to be doing more to service Gen Z. Here are five considerations to help make the shift to service the first digital-only generation. Podcasts Siddhartha Jajodia, U.S. CEO and Chief Banking Officer of Revolut on creating a global digital bank The Chief Digital Banking officer and Revolut U.S. CEO, Sid Jajodia, talks about the challenges of creating the world’s first… RegFi Episode 13: Fintech Trends from 2023 – and What’s Ahead – with Peter Renton Editorial Cartoon Webinar Fraud risks to watch out for in 2024 Jan 18, 12pm EST In our highly digital world, businesses work with customers from all over the globe and at higher volumes, where decisions… Also Making News USA: Companies Like Afterpay and Affirm May Put Americans At Risk For ‘Phantom Debt’ Buying mattresses, clothes and other goods on installment plans has propped up spending, but economists worry that such loans could put some people at risk. Global: Worldcoin is no longer offering Orb-verification in India, Brazil and France Worldcoin is no longer offering its Orb-verification service in India, Brazil and France, just months after the crypto startup expanded the helmet-shaped eyeball-scanning device to those markets. Global: Stripe Swings to a Profit as Business Rebounds Payments giant Stripe, a bellwether of the startup world, kept a lid on spending for engineers and salespeople this year after business slowed in 2022. Now it’s reaping the benefits: as revenue growth has re-accelerated, it’s making money again. USA: Walmart brings BNPL payments to self-checkout kiosks with Affirm Walmart has struck a deal with Affirm to offer buy now, pay later options at self-checkout kiosks at over 4500 US stores. USA: Goldman-Backed Vestwell Raises Funds at $1 Billion Valuation Vestwell, a savings and investment platform backed by Goldman Sachs Group Inc., has raised $125 million in a new funding round as the startup seeks to expand its product offerings. Global: Revolut Growth Buoys Investors After Bruising Year for Fintech Revolut Ltd. is on track to generate more than £1.5 billion ($1.9 billion) in revenue for the year as Europe’s most valuable startup benefits from rising interest rates across the continent. To sponsor our newsletters and reach 220,000 fintech enthusiasts with your message, contact us here.
This content was originally published here.
