The Consumer Financial Protection Bureau (CFPB) today ordered U.S. Bank to pay nearly $21 million for keeping out-of-work consumers from accessing unemployment benefits at the height of the COVID-19 pandemic. U.S. Bank froze tens of thousands of accounts. However, it failed to provide people a reliable and quick way to regain access. The bank also failed to provide provisional account credits, while investigating potentially unauthorized transfers. Today’s order requires U.S. Bank to pay $5.7 million to consumers harmed by its actions and to pay a $15 million penalty.

The Office of the Comptroller of the Currency (OCC) separately fined U.S. Bank $15 million. The CFPB and OCC coordinated during their investigations into U.S. Bank’s illegal conduct.

“At a time when unemployment was close to 15%, many out-of-work Americans throughout the country had little choice but to rely on U.S. Bank for their unemployment benefits. U.S. Bank blocked access to accounts and demanded burdensome paperwork in order for consumers to regain access to their frozen benefits," said CFPB Director Rohit Chopra. “U.S. Bank must comply with the law, and the CFPB and OCC are making the bank pay for its conduct."

U.S. Bank is a wholly-owned subsidiary of U.S. Bancorp (NYSE: USB). It is based in Minneapolis. The bank is the fifth-largest commercial bank in the country, with 2,000 branches in 26 states. As of September 30, 2023, U.S. Bank had $668 billion in assets.

At the onset of the COVID-19 pandemic in 2020, U.S. Bank had contracts with at least 19 states and the District of Columbia to deliver unemployment benefits. Millions of newly out-of-work consumers relied on the unemployment benefits delivered through U.S. Bank’s ReliaCard prepaid card. However, tens of thousands of those consumers found their accounts frozen for weeks or more at a time. Consumers had to verify their identities to unfreeze their accounts, but the bank lacked an adequate way for them to do so. Many of other consumers found U.S. Bank failed to provide them provisional account credits after they reported unauthorized transfers from their accounts.

The CFPB found that U.S. Bank violated the Consumer Financial Protection Act and the Electronic Fund Transfer Act. Specifically, the bank harmed consumers by withholding:

• Access to state benefits: Expanded anti-fraud controls, implemented by U.S. Bank, resulted in tens of thousands of frozen accounts. However, U.S. Bank did not provide consistent, accurate instructions to consumers on how to unfreeze their accounts quickly. That left consumers unable to access unemployment funds.
• Provisional account credits: When accountholders report unauthorized transfers, banks must provide provisional account credits if their investigations take more than 10 days. In thousands of cases, U.S. Bank failed to provide provisional credits. The bank failed to provide the credits because it improperly required additional written confirmation about the suspected unauthorized transfers from consumers. These actions left consumers unable to spend the funds they had reported as unauthorized transfers.

Enforcement Action

Under the Consumer Financial Protection Act, the CFPB has the authority to take action against institutions violating consumer financial protection laws, including engaging in unfair, deceptive, or abusive acts or practices. It also has the authority to take action against institutions for violating the Electronic Fund Transfer Act. The CFPB’s order requires U.S. Bank to:

• Pay $5.7 million to consumers: U.S. Bank is required to provide redress to the tens of thousands of consumers harmed by the bank’s administration failures.
• Provide consumers access to their unemployment funds: The order set guardrails on how U.S. Bank can limit consumer access to unemployment benefit account funds. The bank must have adequate processes to help consumers regain access.
• Issue provisional account credits: Consumers who submit a notice of error online will not have to submit additional, written confirmation about an unauthorized electronic transfer to receive provisional account credits.
• Pay a $15 million fine: U.S. Bank will pay a $15 million penalty to the CFPB’s victims relief fund.

Volt, the global real-time payments platform, today announces its partnership with embedded sustainability fintech, ekko. The collaboration enables consumers and retailers to support the removal of plastic bottles from the ocean at checkout, which are then tracked in real-time to measure the environmental impact of payments.

When choosing a payment method at the checkout, consumers can remove a plastic bottle from the ocean when paying with Volt, before seeing a real-time counter for how many bottles have been removed so far. The counter increases once a payment is completed, highlighting the real-time impact of their payment and helping merchants to make tangible progress on their sustainability strategy.

This collaboration means ekko will benefit from joining Volt’s global real-time payments network, plugging into payments being initiated across the UK, Europe, Brazil, and Australia. It solidifies ekko’s position as the leading embedded sustainability provider for the world’s biggest businesses, banks, retailers, and employers.

Fresh from its recent Australian expansion, the partnership marks another significant step in Volt’s growth journey, which saw the company raise $60m in its Series B funding round in June, joining Primer, Shopify, and Worldpay as companies partnering with Volt in 2023.

Collaborating with ekko shows Volt’s commitment to making a positive impact and simplifying environmental support for others, by helping retailers seamlessly integrate sustainability into their checkouts, and ensuring initiatives are delivered thanks to ekko’s measurement capabilities.

Commenting on the news, Jordan Lawrence, Chief Growth Officer and Co-founder of Volt, said: “I am incredibly excited by what this partnership will bring. The environment is very close to my and Volt’s heart, and solutions like ekko’s help to make the real difference that we believe our sector should strive to do. Combining real-time payments with real-time environmental capabilities is the perfect marriage; I’m thrilled for Volt users to gain an accurate representation of the difference they’re making to the planet.”

Oli Cook, CEO and Co-founder of ekko, added: “We have an incredible role to play in fighting the climate crisis, as financial services impact nearly everything we do. We have an opportunity to mobilize people and businesses from every walk of life to do good and to make environmentally friendly choices. Working with Volt allows us to expand the horizons of our offering, reaching customers across the world and ultimately increasing support for environmental causes by bringing our real-time tracking capabilities to payments worldwide.

Vertex, Inc., a global provider of tax technology solutions, and Mirakl, the global leader in platform business innovation, announced today the certified integration of Vertex® O Series® and the Mirakl Marketplace Platform. The solution seamlessly integrates with Mirakl’s platform, automating the update of tax rates and rules, as well as the determination and calculation of sales, seller use, and value-added tax (VAT) on marketplace transactions.

The benefits of the certified integration include accuracy and consistency enhancements for tax determination and calculation for every line item of each transaction, further reducing the compliance risk for marketplace operators and sellers. Through the integration, businesses operating online platforms powered by Mirakl can fully leverage Vertex's industry-leading, end-to-end global tax and compliance technology.

According to Gartner research, by 2025 80% of B2B sales interactions between suppliers and buyers will occur in digital channels. With this growth comes the challenge for marketplace operators and sellers worldwide to understand and comply with diverse tax and compliance regulations with each sale. Variables impacting tax complexity include item origin and destination, liability assessment, applicable tax rates and rules, and determined responsibility for collecting and remitting taxes for specific items in an order.

"With the volume and complexity of tax and compliance requirements for marketplace facilitators continuing to grow globally, the ability to streamline tax determination and remove friction for marketplace operators and their sellers is key," said Chris Jones, Chief Commercial Officer at Vertex. “This certification provides customers the comfort of knowing that regardless of what transaction systems they leverage now or in the future, Vertex solutions will strive to meet their evolving needs – adapting to provide consistent performance.”

"Expanding a marketplace business into a new market brings an untapped audience of buyers and increased revenue – but it also introduces new complexities in tax compliance,” said Andy Barker, Executive Vice President, Financial Services, Mirakl. “With Mirakl and Vertex, taxes don’t have to be a barrier to platform growth. Now, enterprises can use Vertex’s certified integration to streamline tax compliance and seamlessly operate their Mirakl-powered platforms, so that they can focus on what matters: delivering more value to customers.”

Vertex’s integration has been tested and validated to meet Mirakl’s strict standard for security and performance, giving customers confidence it will operate as expected when integrated with the Mirakl Marketplace Platform.

Western Union, a leader in the cross-border money movement, continues to expand its network of concept stores in the United Kingdom and Europe, having now inaugurated 100 locations in total. This forms part of the company’s global retail strategy, aiming to offer customers enhanced service and, ultimately, enable them to enjoy an omni-channel experience.

The network represents an investment by Western Union in its retail presence in the UK while supporting local micro-entrepreneurs and financial inclusion in migrant communities. The UK is one of the first markets where the network expanded; other countries include Spain, Italy, Germany, France, and others. The company has plans to significantly expand the number of stores and hubs across Europe through 2025.

Concept stores represent a new retail offering, where customers can not only make international money transfers but also benefit from premium brand experience and level of service. Graham Baker, Head of the UK, Ireland, and the Nordics, explained: “I am greatly pleased that more and more of Western Union’s concept stores appear across the UK’s streets. This is a vote of confidence in the nation’s retail sector, which has been challenged significantly since the pandemic.”

“This network is a new way for us to re-invent and evolve our retail presence, by putting our customers, and their needs, at the very centre of our work. At the same time, it provides an opportunity to trial new products and services, as we aim to become a one-stop shop for all our customers’ financial needs,” continued Graham.

Investment in micro-entrepreneurship and financial inclusion

With the new network of concept stores, the company recognizes the loyalty of long-standing partners by offering them the possibility of opening these exclusive Western Union locations, where the company offers faster, easier, and simpler access to its services.

This relationship represents a tangible investment in micro-entrepreneurship, as well as financial inclusion, allowing these retail entrepreneurs to have a new, elevated role in their communities, usually comprised of migrants, and expand their business. Concept store partners enjoy an enhanced relationship with Western Union and additional support.

In an increasingly global world where seamless and immediate transactions are expected, the ability to bank directly with one's remitter should be the norm, not the exception. At least, that is what Transfer Galaxy and Intergiro believe and aim to bring about with their innovative partnership.

Transfer Galaxy and Intergiro have partnered to launch a seamless cross-border digital banking experience that will make it easier for foreign-born nationals and digital nomads to send money abroad.

Powered by Intergiro's Banking as a Service platform, TransferGalaxy shatters traditional remittance boundaries, offering users a pioneering banking journey right within their remittance platform. Integrated wallets provide users with a centralized and secure space to manage their funds, making it easier to track and control their transactions.

Users can send money using a variety of methods, including bank transfers, debit cards, and mobile wallets. They can also track their transactions manage their accounts online and access a wider range of financial services, including currency exchange, bill payment, and mobile top-up.

Paired with the versatility of both physical and virtual debit cards, and the added convenience of integration with Apple Pay and Google Pay, the entire process has been thoughtfully crafted with the end user's convenience and needs in mind.

 "Every transaction is more than just money; it's a sentiment, a memory, “ says Yosef Mohamed, CEO of Transfer Galaxy. “This isn't just about technology; it's about bringing people closer. With Intergiro, we're ensuring these moments are cherished, bridging distances with every transfer."

Fintech isn’t just about innovation. It’s about the relationships fintech can support, says Gustaf Hult, Head of Sales at Intergiro. "Our collaboration with Transfer Galaxy is a testament to fintech's potential — not just in advancing technology but in touching lives. Together, we're putting the user's journey, emotions, and needs at the forefront."

Transfer Galaxy's commitment to making international payments more affordable, secure, and efficient synergizes perfectly with Intergiro's expertise in embedded finance solutions. Together, they ensure that each remittance not only meets financial needs but also deeply resonates with the emotions and aspirations of its users.

Hawk AI, Germany’s leading provider of anti-money laundering surveillance technology for banks, payment firms, and fintechs, today announced OTTO Payments, the payments division serving the otto.de marketplace, as a client. 

With the partnership, OTTO Payments will make use of Hawk AI’s Transaction Monitoring and Customer Screening technology, powered by explainable AI, to ensure effective Anti-Money Laundering (AML) compliance. 

As well as meeting regulatory requirements, OTTO Payments wanted an AML solution that would offer efficiency in detecting financial crime. The scalability and accuracy of Hawk AI's technology, combined with its explainable AI and intuitive user interface, made it the ideal choice.

”We’re delighted to welcome OTTO Payments as a client of our award-winning AI-powered Transaction Monitoring and Customer Screening technology,”,” said Tobias Schweiger, CEO and Co-founder of Hawk AI. "Hawk AI’s mission is to be a formidable ally against the escalating volume and sophistication of financial crime. Our scalable technology empowers organizations to forge ahead with ambitious growth plans, all the while fortifying their defenses against the threats of money laundering and fraud.”

"Due to rapid growth, OTTO Payments was looking for a trusted provider that could rapidly implement a world-class system, and ensure leading performance well into the future," said Mirko Krauel, CEO at OTTO Payments. “The Hawk AI team demonstrated their technology leadership and willingness to work closely with our teams to hit ambitious goals. We look forward to a strong relationship that ensures the highest level of AML compliance.” 

Hawk AI is on track for another year of stellar growth, thanks to growing demand for its unique explainable AI technology. Banks and payment organizations worldwide are using Hawk AI’s platform to improve fraud detection and AML compliance. The company’s modular solution can either enhance or replace traditional rules-based systems with AI-powered customer and transaction screening, which delivers greater accuracy and reduced noise.

SellersFi, a global, cutting-edge financial technology startup, closed a new US credit facility with Citi and independent asset manager Fasanara Capital for $135MM with the potential to grow up to $300M as SellersFi expands. The senior capital is provided by Citi with a portion from Fasanara, and the mezzanine capital is provided solely by Fasanara. Also, Fasanara is renewing its commitment to SetoersFi by continuing its support to SellerFi as a senior lender for other jurisdictions and products. The new investment will be deployed to further develop SellersFi’s innovative product offerings, expand its portfolio, and enhance its technological infrastructure.

Ricardo Pero, cofounder and CEO of SellersFi, said “We are delighted to secure this credit facility with Citi, one of the largest banks in the world, and having Fasanara Capital renew its trust in SellersFi’s team, strategy, and products. In the current macro environment, this is an important milestone for enabling our growth with both existing and new partners and answering the financing needs of thousands of e-commerce businesses.”

“This collaboration underscores our commitment to delivering excellence in financial services and strengthens our ability to meet the dynamic needs of our clients. We are excited about the opportunities that lie ahead and are confident that this funding will pave the way for continued success and growth,” said Abhi Chakraborty, CFO at SellersFi.

“Fasanara has been a finance partner to SellersFi since February 2020,” said Francesco Filia, CEO at Fasanara.  “This new facility builds on the existing relationship. We are excited to once again work with SellerFi and welcome the new credit facility Citi.” Fasanara provides flexible and innovative capital solutions to meet SellersFi’s evolving needs.

Fiat Republic, the specialist Banking-as-a-Service (BaaS) platform that bridges the gap between web3 and traditional banks, today announces it has raised $7 million in a seed extension round. Participants in the round include first-time investments from Kraken Ventures, Fabric Ventures, Arca, and Inovo Ventures, as well as existing investors Speedinvest, Credo Ventures, and Seedcamp. This significant capital injection is set to fuel sustained growth and expansion, with the funds earmarked for key initiatives, including strategic hires, strengthening banking partnerships, and expanding to new territories.

The company also announced it has been granted a full electronic money institution (EMI) licence by De Nederlandsche Bank (DNB), enabling it to provide regulated financial services across the European Economic Area. This comes in addition to their established EMI licence in the UK, where they have been operational for more than a year. This Dutch licence enables the Fiat Republic platform to provide payment services and issue e-money to EEA crypto platforms via its purpose-built, developer-friendly API. 

Founded by an experienced team with backgrounds in banking and fintech, Fiat Republic is on a mission to enhance the accessibility of traditional banking and payment services for cryptocurrency platforms. Through a single integration and compliance onboarding, their platform provides crypto platforms essential connections to various global and local fiat payment networks, embedding both traditional finance and a compliance-first mindset at its heart. Fiat Republic is also forging a coalition of crypto platforms to liaise more effectively with regulators, aiming to set standards for the asset class and shift its image among traditional financial entities.

Adam Bialy, CEO and co-founder of Fiat Republic, notes, “This investment underscores the confidence our investors have in Fiat Republic’s vision and the future trajectory of the company in the financial space. With our newly acquired Dutch EMI licence, Fiat Republic will now operate across the entire European Union, providing e-money and payment services. Passporting from the reputable and credible jurisdiction of the Netherlands not only boosts our legitimacy in the traditional finance world but also highlights our commitment to high compliance standards, security, and close collaboration with regulators. This move, to me, also signals that the Netherlands is open for business ahead of the upcoming MiCA regulation.”

Commenting on the raise, Michal Benedykcinski, SVP at Arca, said: “Arca is enthusiastic to back Fiat Republic on its mission to bridge the gap between traditional banking and the rapidly growing financial needs of web3 projects. Our investment in Fiat Republic represents a deep belief in making compliant industry standards for individual transactions easy to follow by all market participants, whether you are a crypto platform, bank, or regulator.”

Anil Hansjee, General Partner at Fabric Ventures, adds, “We are delighted to be part of Fiat Republic’s journey in revolutionising the Banking-as-a-Service landscape. Their innovative and regulation-first approach in bridging the worlds of traditional banking and web3 is not only timely but crucial for the evolution of financial services. This investment is a testament to our belief in Fiat Republic’s vision and the potential of their platform to redefine the banking experience for crypto platforms across Europe.”

Mintos, a leading multi-asset platform providing a unique mix of alternative and traditional investment options, is pleased to announce the addition of ETFs to its offering, just weeks after the successful launch of high-yield Fractional Bonds.

Introducing personalized ETF portfolios for long-term, diversified investments with zero commissions marks a significant milestone, as investors can now align their strategies with their individual financial goals and risk appetite.

According to a survey conducted by Mintos on a sample of 1100 customers, a remarkable 80% of respondents who were not yet investing in ETFs expressed their intention to do so shortly, revealing a strong interest in this investment category.

The primary challenge identified among potential ETF investors was a lack of knowledge, with many individuals feeling overwhelmed by the broad range of investment options, tax implications, and the investment process. Additionally, complex and non-transparent fee structures posed a dilemma for investors seeking a trustworthy investment platform.

"At Mintos, we aim at making long-term passive investing a hassle-free experience. We recognize that today's investors often find themselves overwhelmed by the vast array of available ETFs and the complex fee structures still imposed by many investment platforms when they expect zero commissions instead. That's why we are happy to introduce personalized ETF portfolios that cater to different risk preferences, making it simple for investors to build a well-balanced portfolio aligned with their goals." comments Martins Sulte, CEO and Co-Founder of Mintos.

Mintos' ETF offering encompasses a range of key features designed to simplify the investing experience. The personalized ETF portfolios, featuring renowned providers like Amundi, iShares, JP Morgan, and Vanguard, are tailored to cater to different risk appetites, effortlessly adjusting the balance of bond and stock ETFs within each portfolio to meet specific investment goals.

With a low minimum investment of just 50 EUR and zero fees, accessibility is key, allowing investors, regardless of their investment capacity, to craft a flexible, diversified investment strategy. Mintos also supports tax-efficient rebalancing, automatically choosing tax-optimized ETFs and adjusting the portfolio allocations as investments grow.