Company profit – Stormbirds http://stormbirds.net/ Tue, 17 May 2022 05:33:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://stormbirds.net/wp-content/uploads/2021/07/icon-2021-07-05T151758.466-150x150.png Company profit – Stormbirds http://stormbirds.net/ 32 32 VGS Plaid Taps for Tokenization Services https://stormbirds.net/vgs-plaid-taps-for-tokenization-services/ Mon, 16 May 2022 19:00:48 +0000 https://stormbirds.net/vgs-plaid-taps-for-tokenization-services/ Data privacy provider Very Good Security (VGS) has launched an expanded partnership with data network Plaid to provide tokenization services, the company announced in a Monday, May 16 press release. “Tokenization can help protect personally identifiable information (PII) and sensitive data from exposure and use for harmful purposes,” VGS said in the statement. “VGS will […]]]>

Data privacy provider Very Good Security (VGS) has launched an expanded partnership with data network Plaid to provide tokenization services, the company announced in a Monday, May 16 press release.

“Tokenization can help protect personally identifiable information (PII) and sensitive data from exposure and use for harmful purposes,” VGS said in the statement. “VGS will provide PII tokenization and financial data backup services for Plaid customers. This will help ensure end-to-end data security for Plaid customers by seamlessly integrating VGS services alongside Plaid APIs.

See also: “Zero Data” empowers companies to control – and find value – in sensitive data

VGS also said its Tokenization and Zero Data platform enables businesses to leverage sensitive data through format preservation and full portability, allowing customers to avoid vendor lock-in and recoup time spent. data security hygiene and compliance maintenance.

“Creating and operating financial applications involves interacting with PII and sensitive account data,” said Hoang Leung, Head of Payment Products and Solutions at VGS. “Tech companies building these apps get more out of data when tokenization is used, creating protection for the end user and efficient, secure operations for the business.”

Leung added that the partnership will allow Plaid customers to add new data security without disrupting their ecosystems, giving them the ability to derive more value from their data.

Last month, Plaid partnered with data privacy platform Skyflow to help developers build apps with data privacy infrastructure using its application programming interface (API). Skyflow’s Data Privacy Vault offering helps customers build FinTech applications with data privacy, security, and compliance tools.

Read more: Skyflow, Plaid Partner on Data Protection and Privacy for FinTechs

With this partnership, Skyflow offers predefined logins to Plaid products and a predefined vault path for Plaid customers, giving developers and users confidence that data accessed through Plaid will be stored securely.

PYMNTS spoke last year with Mahmoud Abdelkader, CEO and co-founder of VGS, about the value of a concept known as “zero data”.

Mechanically, zero data allows companies to map proprietary payment service provider (PSP) tokens and the underlying primary account number to a global alias, bringing together transactions for a given card or customer, regardless of location, channel or PSP. Zero data allows companies to reduce layers of customer activity — Abdelkader likened it to an onion — and forge stronger customer relationships.

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NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND STORED CARDS – APRIL 2022

On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveyed 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.

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‘Buy now, pay later’ in spotlight as high street banks enter https://stormbirds.net/buy-now-pay-later-in-spotlight-as-high-street-banks-enter/ Sun, 15 May 2022 05:00:00 +0000 https://stormbirds.net/buy-now-pay-later-in-spotlight-as-high-street-banks-enter/ High street lenders are in part being attracted by an apparent generational shift, among Millennials and Gen Z consumers, away from credit cards towards BNPL. Failure to adapt to changing consumption habits could lead them to reduce their future sources of income. Chris Taylor, Head of Consumer Lending at Virgin Money, says: “We are looking […]]]>

High street lenders are in part being attracted by an apparent generational shift, among Millennials and Gen Z consumers, away from credit cards towards BNPL. Failure to adapt to changing consumption habits could lead them to reduce their future sources of income.

Chris Taylor, Head of Consumer Lending at Virgin Money, says: “We are looking to attract a younger demographic, who we would like a lifelong relationship with, by helping them build a credit profile for the future, unlike BNPL’s unregulated providers who offer customers only an ephemeral point-of-sale credit mechanism.

In a regulatory review for BNPL, the Financial Conduct Authority (FCA) said the payment option “has provided a meaningful alternative to payday loans and other forms of credit”, but also “represents significant potential harm to the consumer”.

His research found that “some” customers don’t view BNPL as credit and associate it more closely with debit cards and payment methods, such as Apple Pay. The regulator quoted a major unnamed UK bank as saying that 10% of the 677,000 personal account customers who made a payment to two of BNPL’s major providers in November 2020 exceeded their overdraft limit that same month.

Inflation could even drive up interest rates for hard-hit customers struggling with late payment fees as BNPL suppliers try to preserve their margins.

Those concerns prompted trade body UK Finance to push for new regulations, which are currently in Treasury consultation following legislation passed in 2021.

A UK finance spokesperson said: “The main piece of legislation in this area – the Consumer Credit Act (CCA) – is now nearly 50 years old and in need of fundamental reform. It’s something we’ve stood for for a long time. »

Some BNPL suppliers say they do not object to stricter regulation.

“Regulation can’t come soon enough to protect consumers as more vendors enter the space,” says Alex Marsh, director of Klarna UK. “For our part, we have introduced a series of changes to better support consumers, including clearer terms and conditions, payment information and the creation of an internal complaints arbitrator.”

He insists that Klarna has taken the report’s advice “not to wait for regulation” to heart. Earlier this month, the fintech company announced that it would start reporting customer purchases to credit reporting agencies.

As traditional players enter the space, some argue that unregulated BNPL providers are not required to adhere to the same strict consumer protection laws as banks. Anthony Stephen, managing director of Barclays Partner Finance, said it was “not a level playing field”.

He adds, “All loans should be reported to credit reference agencies at the point of purchase, so other lenders can get an accurate picture of the customer’s monthly credit commitments.”

According to the FCA, most BNPL providers perform a very basic credit assessment which focuses on risk as opposed to what is affordable to the consumer. Stephen, however, is not optimistic that the regulations will even out, potentially putting high street lenders at a disadvantage.

“The key issue is that the government can potentially apply a different level of regulation to short-term, low-interest products than it does to more traditional offerings, such as credit cards,” he said. he declared. “It will create an unnecessary two-tier regulatory framework that works against the interests of consumers.”

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PYMNTS AM Radar: Twitter Waiting https://stormbirds.net/pymnts-am-radar-twitter-waiting/ Fri, 13 May 2022 12:49:11 +0000 https://stormbirds.net/pymnts-am-radar-twitter-waiting/ Today is Friday, May 13. Friday the 13th is known as an unlucky day in Western superstition and is also the premise of the slasher film franchise which is set in the fictional Crystal Lake, but is actually based on a real, unsolved 1960 murder of three teenagers in Lake Bodom in Finland. The film […]]]>

Today is Friday, May 13. Friday the 13th is known as an unlucky day in Western superstition and is also the premise of the slasher film franchise which is set in the fictional Crystal Lake, but is actually based on a real, unsolved 1960 murder of three teenagers in Lake Bodom in Finland. The film series has not continued since 2009 due to copyright laws. Here’s what should be on your radar this morning.

Twitter pending. Elon Musk has tweeted that his $44 billion deal to acquire Twitter is now on hold. The Tesla CEO and rocket man said he wanted to dig deeper into the social media platform’s monetizable daily active users and the number of spam accounts on the site. Twitter reported that fake accounts accounted for less than 5% of its 226 million monetizable daily active users; Musk wants to see the calculations. READ MORE

Crypto Lightning. Former Meta executive David Marcus has raised $175 million for his new cryptocurrency payments startup on the Lightning Network called Lightspark. Marcus led the Facebook team for the stablecoin first called Libra, then Diem, as well as a crypto wallet, Novi. Lightspark is working on the infrastructure to increase the speed and efficiency of the Lightning Network blockchain protocol. READ MORE

Cash flow magic. Conversion on “how” to make payments is driven by customers dictating their preferred method and businesses striving to optimize. Jennifer Acosta, JP Morgan’s managing director, industry, technology, media and telecommunications, told Karen Webster of PYMNTS that the B2B space lags behind the B2C sector in innovation. READ MORE

Nut Soup. Indoor dining is back, but that doesn’t mean customers have given up on their desire for restaurant meal delivery. Restaurants are now tasked with finding the best way to leverage technology to thrive in an omnichannel world. Andrew Robbins, CEO of Paytronix, told PYMNTS that digital platforms are now an essential tool for driving engagement and loyalty. READ MORE

ICYMI. DJ and electronic production duo The Chainsmokers are releasing 5,000 non-fungible tokens (NFTs) on Tuesday (May 17) that will be given away free to fans to offer them a percentage of the streaming royalties from their new studio album ‘So far so good. good.” The VIP list of recipients will be compiled from superfans and frequent concert ticket buyers. READ MORE

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NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND STORED CARDS – APRIL 2022

On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveys 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.

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Shopify, Square among companies hoping to ease e-commerce slowdown by lending money to merchants https://stormbirds.net/shopify-square-among-companies-hoping-to-ease-e-commerce-slowdown-by-lending-money-to-merchants/ Wed, 11 May 2022 18:51:17 +0000 https://stormbirds.net/shopify-square-among-companies-hoping-to-ease-e-commerce-slowdown-by-lending-money-to-merchants/ Désirée Kretschmar, owner of the Plant Goals store in Peterborough, Ont., took part in a beta test of the Square Loans program in the fall to purchase new inventory.Ash Nayler/The Globe and Mail E-commerce companies, facing a sudden downturn, are hoping that one of their new lines of business can help pick up the slack: […]]]>

Désirée Kretschmar, owner of the Plant Goals store in Peterborough, Ont., took part in a beta test of the Square Loans program in the fall to purchase new inventory.Ash Nayler/The Globe and Mail

E-commerce companies, facing a sudden downturn, are hoping that one of their new lines of business can help pick up the slack: lending money.

Tech companies that provide online sales and transaction services to retailers and small businesses are also increasingly offering loans and cash advances to these customers in an effort to keep them connected to their service platforms.

They do this for a fee and a share of future sales, providing small businesses with an immediate source of cash in the blink of an eye, with these loans now worth billions of dollars.

It’s often a mutually beneficial deal, but like any credit program, it comes with risks, especially if the recent slump in e-commerce spending turns into a prolonged recession.

E-commerce companies such as Shopify Inc. SHOP-T, Amazon.com Inc. AMZN-Q and several others recently reported below-expected financial results, sending their stock prices plummeting amid signs that growth rapid online traffic during the pandemic is no longer sustainable. Soaring inflation is also raising fears that consumers will cut back on discretionary spending.

Shopify, for example, revealed in its earnings report last week that it wrote off $46 million in bad credit in the last quarter alone, with nearly half a billion dollars in advances still outstanding. .

Block Inc. SQ-N, the owner of Square Inc., is the latest to offer credit to Canadian merchants with the launch of Square Loans last month. It follows similar programs launched during the pandemic by competitors Shopify and Lightspeed Commerce LSPD-T.

Luke Voiles, managing director of Square Banking, says offering loans can be a way to see merchants through a tough time.

“If they’re going through a tough time and we’re able to keep them going over time, we’re able to help them survive,” he said. “It feels really good.”

“We try to resolve pain points as much as possible to make sure they stay with us.”

Dan Romanoff, Chicago-based principal e-commerce and software company analyst at Morningstar Inc., says offering credit is becoming increasingly necessary for these businesses — an attractive incentive for merchants to continue working with e-commerce platforms.

“It’s something where once you start using this software and earn capital, it’s very hard to stop,” Romanoff said. “The ability of Shopify or any of its peers, quite honestly, to offer some sort of capital assistance is just that they’re more of a one-stop-shop.”

The programs provide a certain amount of money in exchange for an initial fee. The money is refunded by deducting a small amount from the merchant’s daily sales.

In an example provided by Square, a merchant who wants to borrow $10,000 might be charged a fee of $1,300, so a total of $11,300 would be deducted in installments from their sales over 18 months. Square estimates that most fees would be around 10-13% of the loan. A cash advance on a credit card would carry a higher interest rate, while most bank loans would have lower rates.

Both Square and Shopify use algorithms to set the terms of their loans, while Lightspeed says its terms are decided by a mix of algorithms and human analysis.

In all cases, however, credit offers are based on the merchant’s sales records and, unlike a traditional bank loan, do not involve a credit check.

Shopify says its automated process helps merchants avoid filling out lengthy loan applications or writing business plans.

Désirée Kretschmar, owner of the Plant Goals store in Peterborough, Ont., took part in a beta test of the Square Loans program in the fall to purchase new inventory. She said she found the experience much easier and faster than applying for a loan from a bank.

“It took about as long as it takes to drink a cup of coffee,” she said.

But not doing a credit check adds an element of risk.

David Lewis, insolvency trustee at BDO Canada, said the choice not to run credit checks means e-commerce platforms have no idea if merchants have other loans they might have. hard to repay. It could also offer struggling companies a way to take on more debt.

“Without any credit checks or any collateral, I might just see someone go out and apply for these little loans to help cover what they need in the short term,” Mr Lewis said. “Kind of like what people do with payday loans.”

He added, however, that e-commerce businesses have the advantage of being able to deduct money directly from a merchant’s earnings, a power that most creditors do not have.

The amount of money provided through these credit programs varies widely by platform.

Shopify says it has provided more than US$3 billion to merchants in the United States, Britain and Canada through Shopify Capital since 2016. In company results released Thursday, it said it had provided US$347 million. US dollars in cash and loans in the first quarter of 2022, up 12% from the first quarter of last year. The company’s latest quarterly filings show it had $487 million in outstanding merchant credit as of March 31 after writing off $46 million in bad loans and advances.

Square says it has made $9 billion in loans in the United States, Australia and Canada. The company did not specify the amount reimbursed. Documents filed by the companies for the 2021 financial year show that, on average, merchants took nine months to repay the loans.

Lightspeed Capital, however, hasn’t been used as often. Documents filed by the companies show the program had $5.3 million in outstanding loans as of December 31, 2021. An analysis by Credit Suisse researchers last month estimated that fewer than 300 merchants would use the program by December 31, 2021. fiscal year 2024.

Still, Mr. Romanoff said he expects other companies to expand their credit offerings. He pointed to Amazon’s efforts to provide advances to third-party sellers on Amazon Marketplace.

“It’s something that is real and benefits users,” Romanoff said. “I think it’s valuable and I don’t think it’s a money loser by any means.”

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Q&A with Hutsy Founder, Tefari https://stormbirds.net/qa-with-hutsy-founder-tefari/ Wed, 04 May 2022 13:31:25 +0000 https://stormbirds.net/qa-with-hutsy-founder-tefari/ Breadcrumb Links MoneyWise Canada growing money Tefari Bailey says Hutsy will lend a hand to Canadians abandoned by big banks Author of the article: Tefari Bailey Content of the article After a “life-changing” experience in “Dragon’s Den,” Tefari Bailey is eager to fulfill her mission and disrupt the Canadian banking industry. Advertisement 2 This ad […]]]>

Tefari Bailey says Hutsy will lend a hand to Canadians abandoned by big banks

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After a “life-changing” experience in “Dragon’s Den,” Tefari Bailey is eager to fulfill her mission and disrupt the Canadian banking industry.

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Hutsy, a digital banking platform, comes with a fee-free account and an app that helps users save, earn money, and track their finances. With 15,000 users on its waiting list and a $500,000 investment from one of the dragons, this neobank plans to launch later this year.

Bailey sat down with MoneyWise to talk about neobanking, the issues with Canada’s current options, and the role Hutsy needs to play.

Many people may not be familiar with the term “neobank”. What is that?

Simply put, a neobank is an online digital bank. The advantage of doing business with a neobank over a traditional financial institution is that we don’t have the thousands of employees of a large financial institution or the thousands of corporate trading offices across Canada and the rest of the world that these other big companies have. This is how we are able to reward our customers by doing everything online, offering them zero fees on their banking services and giving them cash back on all purchases.

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You started your career working for one of Canada’s major banks. What have you seen in this company that made you want to disrupt it?

I’ve done everything from entry-level cashier to financial and investment advisor. People were trying to see me on a daily, weekly, monthly basis in order to get a loan just to pay for something small, like replacing a car tire, an emergency medical bill and things of that nature. .

Unfortunately, I worked in a low income area and had no authority to approve or deny loans. As an advisor, I would just put the information in the system, it would go to our back office decision team, and they would approve or deny. For the people who were turned down, I saw them going to the payday loan store in our same place to get that $300 payday loan just to fix their car.

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If you’re unfamiliar with this industry, payday lenders charge interest rates well over 300%, which could end up leaving individuals trapped in a cycle of debt. As a counselor, I have seen the financial quality of their health deteriorate over time, to the point that they were getting a payday loan from one institution just to pay off the loan from another institution. They got sucked into this debt cycle, unfortunately, and there was nothing I could do about it.

Was this what inspired your original plans for Hutsy?

It was definitely one of Hutsy’s main inspirations. Digging deeper into this, I saw that 45% of Canadians were living paycheck to paycheque, according to a 2017 report. About two million Canadians used payday loan services each year and more than 125,000 Canadians applied for insolvency services every year. And by insolvency, I mean consumer proposals and bankruptcies.

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And no big players were really doing anything to help these people. From what I understand, working for the banks, they really only cared about people putting money into their mutual fund or GIC portfolios, or taking out mortgage real estate loans for them. Ultimately, this is one of the main reasons we decided to launch Hutsy.

Many Canadians don’t realize they have options outside of the big banks. What is your advice for them?

We recommend that you explore your options. Just because five banks control 95% of the assets under management here in Canada doesn’t mean you have to choose one. There are always alternative options. Look at our neighbors in the United States: there are over 4,000 different banks and neobanks in the United States. We really want to expand that market in Canada as well. And that’s why we offer differentiated services such as free chequing accounts. That’s why we offer debit cards that also offer credit and insolvency services.

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As I mentioned earlier, 125,000 Canadians go through bankruptcy or a consumer proposal every year. But what a lot of people don’t understand is that if you fall into this category, yes, you will clear your debts…but you won’t be able to get any kind of credit for the next five to six years of your life. . With our debt management program…let’s say we have a person who has $10,000 in unsecured debt, they have three different creditors, their total interest rate is well over 200%, they have about seven months to refund. And that $10,000 turns into about $20,000.

Where Hutsy comes into play with our debt management product is that we are a licensed collection agency; we negotiate a rate with your creditors. Creditors will still be repaid, but at a zero percent interest rate. And we would spread the payment over a period of time. It’s a win-win situation for all parties.

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Why isn’t the Canadian market already crowded with thousands of options like there are in the US?

It’s a question I ask myself every day. So of course in the banking space, there are a ton of different players in the space. When it comes to loans, there are a ton of different people offering loans. But in the insolvency space, there are a ton of micro players, but no one has a strong foothold in the market. We being a neobank, being able to serve thousands, if not millions of people…being able to provide those services, we believe that is where our bread and butter will be. And that’s what’s really going to set us apart from all the other banks and the Canadian ecosystem.

What are Hutsy’s next steps?

Our next step for the company is launch…we are hoping for a launch between July and August of this year. We received more registrations, more inquiries, more people contacting us than expected. We have a small team right now and we don’t have the human capital to really serve everyone, so the next steps are to hire some great, talented people. And also to raise another round of VC funding in the meantime to further develop what we are doing to expand our engineering team, further develop our technology and build brand awareness and brand equity for Hutsy Financial .

This interview has been edited for length and clarity.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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LA Riot: Moving forward 30 years later with determination and HOPE | News https://stormbirds.net/la-riot-moving-forward-30-years-later-with-determination-and-hope-news/ Mon, 02 May 2022 16:00:54 +0000 https://stormbirds.net/la-riot-moving-forward-30-years-later-with-determination-and-hope-news/ Three decades ago, Los Angeles erupted in some of the worst urban violence America has ever seen. People were furious that the LAPD officers who were filmed beating Rodney King would not be punished. It was a fuse that ignited a keg of gunpowder, the effects of which still reverberate today. A few days after […]]]>

Three decades ago, Los Angeles erupted in some of the worst urban violence America has ever seen. People were furious that the LAPD officers who were filmed beating Rodney King would not be punished. It was a fuse that ignited a keg of gunpowder, the effects of which still reverberate today.

A few days after the start of the violence, John Hope Bryant, a young entrepreneur, decided that it was not enough to give speeches or make statements in front of the press cameras. He got to work mobilizing the public and private sectors to create opportunities that did not previously exist in this community. The result was Operation HOPE. Now based in Atlanta, the organization has secured $2 billion in investments to support its financial literacy and empowerment mission. He sat down with BET.com for a look back at the events of 1992 and why bands like his are still needed today.

BET.com: It hardly seems like three decades have passed since that day, and many people will argue that Los Angeles has never been the same. But are they right? Is the spirit still there?

John Hope Bryant: The spirit is actually stronger because we made a bet on ourselves in the community and the bet paid off. But for those who took part in the struggle in 1992, and in the 30 years since, we have made a bet inspired by the mayor Tom Bradley and [organizations like] rebuilding LA, Operation HOPE, the First AME Church, FAME Renaissance and West Anglia Church of God and Christ, and so many heroes and sheroes of this government, community and private sector partnership. The bet was nobody tearing up their own stuff, nobody burning down their own house.

By giving people an ownership mentality, we made a bet that would change the tone and texture of the community and help us make revitalization sustainable. The shopping complexes that have been built are bustling. The office buildings that have been built are filled. The service stations that have been built have customers and create jobs. The loans that have been given to people to become owners have paid off… which proves that we are a good investment. We are just an untapped asset base and in many cases we don’t even recognize our own value proposition.

LA Riot: 30 years after the fire – Then and Now

A lot has changed since the Los Angeles riots of 1992. But the spirit is still there.

La Brea Ave. was one of many streets where businesses burned during the Los Angeles riots of 1992.

Blacks and Latinos in Los Angeles had a very real fear of the police in 1992, which fueled frustration against them. Even before Rodney King, complaints about police brutality by a majority white LAPD were commonplace.

Much of the area destroyed by the violence was in marginalized black communities with few opportunities. Many resources and jobs burned along with the buildings.

Many community members affected by the violence simply wanted to know why the officers who beat Rodney King would not be punished.

BET.com: We’ve talked about what happened in 1992 before, and the media tends to focus on Rodney King, racial tensions, or the billion dollar damage. But you were there, boots on the ground. What do you think we should focus on?

Bryant: I’m focusing on the little old lady who just wants to refinance the mortgage on our house. I focus on the young entrepreneur who could be next Steve Jobsor Bob Johnson. Or whoever the hero or the shero is… who’s probably sitting in one of the school classrooms just not getting the time and attention.

The burning buildings, an unjust arrest that led to an unjust verdict – these are the stories that are known to everyone and they are dramatic and they are adapted for television, so they are there, that is what is broadcast.

It’s much less sexy to Craft sexy smart. It’s much less sexy to educate a child in the local school and do it on a large scale. It’s a lot less sexy to go block to block and pull the data and find that it’s 500 credit score neighborhoods that have high levels of crime, murder, chaos, drugs, single-parent families, etc. a credit score of 600, a credit score of 650 or a credit score neighborhood of 700? And we both know that 700 credit neighbors don’t riot.

What we have done is help give people something different to see which is the promise of individuality to become a real estate professional, to become a banker, a businessman, a leader community, an architect or an engineer. I mean, this stuff isn’t sexy, but it’s durable.

RELATED: Rep. Karen Bass recalls the Los Angeles riot of 1992 – and the work it took to heal a community

VIDEO: The Los Angeles Riot of 1992: A Visual Timeline of a Devastating Event

RELATED: The often overlooked injustice: Latasha Harlins’ sister reflects 30 years after the 1992 LA riot

BET.com: Some of the same economic challenges still exist in Los Angeles today. Do you feel like the same things are causing the same problems?

Bryant: The problems of disinvestment and misunderstanding of our value in our neighborhoods have always been the same. The only time we were truly valued was when we were profiting from, that is, slavery. It’s interesting to me that these communities that we call “city centers”, in a country like France, the city center is Paris. In the UK the city center is London and in Switzerland it is Geneva. Only in America do we consider inner cities somewhat bad.

New York has Harlem, which is nothing more than Upper Manhattan. You couldn’t give Atlanta 25 years ago. In Anacostia [Washington D.C.]., which is really a waterfront property, and now you have FEMA headquarters there. African Americans were really kicked out of that community. We didn’t give them the opportunity to come up, we just asked them to leave. I’m afraid in inner cities across the country we don’t get the memo. We are moving away from these communities and others are not investing in them because they see them as poor neighborhoods. When they invest, what you see is a check casher, a payday lender, next to a rent-to-own store, next to a title lender, next to a liquor, next to a pawnshop, then a church down the street trying to make you feel a little better.

In that respect, nothing has changed because you don’t have financial literacy, you don’t have financial coaching, you don’t have access to large-scale capital, and you also don’t have the capitalist system at work in these urban neighborhoods. They are simply hollowed out, in many cases.

In South Central LA, and other places where we operate, you have these little pockets of hope that you can point to where the economy is working, people have jobs, contracts, opportunities. But overall, we are still far from the promised land.

BET.com: Since the riot, a whole generation has been born, raised and become adults. Do you think they understand what happened?

Bryant: I think the answer is probably no. But it’s no different from someone thinking about Dr. Martin Luther King Jr., and remembering only the speech “I have a dream”. Or someone trying to understand Nelson Mandelabut just know that he was president of South Africa, not knowing that he was a prisoner for 27 years.

The story here is the journey and transition of what has happened over the past 30 years. But probably the image in people’s minds is that Rodney King was a black man beaten by police officers and then riots happened after that which is a narrative that has replayed over and over again, most recently with George Floyd. I fear that the true message of investment, revitalization, recovery and stability is being lost with the hard work that organizations like ours and others have done for 30 years.

BET.com: Your organization, Operation: HOPE has come a long way since then. It is now a nationally recognized organization. What are some of the things you do these days?

Bryant: The 1 Million Black Business Initiative. There was a lot of $52 billion investment from the private sector, after the murder of George Floyd. Some of that money went to organizations like ours. and we got $130 million from Shopify to create a million new black businesses over 10 years. It started about a year and a half ago, and we’ve made incredible progress in that regard. This creates e-commerce businesses, websites, fulfillment systems, and delivery systems for people to connect and take advantage of this technology-driven business boom.

We have a financial literacy for all movement that is now co-chaired by me and Doug McMillonCEO of Walmart, to embed financial literacy at the heart of business, government and community.

We have 190 HOPE Inside locations in 40 states Plus, which increase credit scores by 54 points in six months, 120 points in 24 months. We’ve directed $4 billion in capital for homeownership and small business ownership in underserved neighborhoods, including South Central Los Angeles, since our inception on May 5, 1992. Four million customers of Operation: HOPE, and it goes on and on. It all started with a dream that started on a bus against the backdrop of the Rodney King riots in 1992.

It was hope-less-ness. Now we return to South Central LA with her daughter Mrs. (Lora Dene) King to highlight the hope-full-ness and to fill the cycle where only rainbows follow storms.

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“Buy now, pay later” plans come with pricey catches https://stormbirds.net/buy-now-pay-later-plans-come-with-pricey-catches/ Thu, 28 Apr 2022 13:38:22 +0000 https://stormbirds.net/buy-now-pay-later-plans-come-with-pricey-catches/ Buy Now, Pay Later (BNPL) plans are increasingly being offered as a convenient credit alternative that allows purchases to be made in installments, typically four payments over six weeks. The so-called “fintech” (financial technology) companies that offer these plans often advertise them as offering consumers interest-free payments without impacting credit scores. But consumer groups and […]]]>

Buy Now, Pay Later (BNPL) plans are increasingly being offered as a convenient credit alternative that allows purchases to be made in installments, typically four payments over six weeks. The so-called “fintech” (financial technology) companies that offer these plans often advertise them as offering consumers interest-free payments without impacting credit scores.

But consumer groups and economic justice organizations point out that these financial products that already reach 8.42 million consumers may be just another explosive form of predatory lending that exploits unsuspecting consumers through a lack of transparency that usually leads to confusion as to the true terms and consequences that flow from it. with the product. Without effective regulation, millions more consumers could be financially duped by the BNPL.

Consumers can use BNPL offers from companies such as Affirm, Klarna, PayPal Pay in 4 and Sizzle, as well as others at physical stores like Macy’s, Footlocker, Target and Walmart, and online retailers like Amazon.

BNPL purchases require direct debits from credit or debit cards. Since each BNPL purchase comes with its own set of payment due dates – unlike the fixed payment date of a credit card bill – these ongoing deductions can easily result in additional bank charges for consumers in case of insufficient funds and overdrafts. And many BNPL transactions do not automatically come with the product return and/or fraud protections offered by credit cards. Instead, these credit terms are currently at the discretion of BNPL’s suppliers. As a result, consumers may find themselves without merchandise, while their money is still taken from debit or credit card accounts.

Complaints filed with the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau noted several consumer issues, including lack of information about initiating disputes, delays in receiving refunds, and continued demand for refunds BNPL lenders.

Last November, Marisabel Torres, California policy director for the Center for Responsible Lending, told Congress that BNPL loans are generally designed to avoid coverage under the Truth in Lending Act (TILA).

“This law excludes from the definition of “creditor” anyone who grants a credit which does not require a financial charge and is repayable in four installments or less…. The fact that this is a “free credit” product begs the question: what is the problem? Torres said. “It turns out there are a number of captures – some demonstrable, some potential – that require regulatory attention and response.”

Proponents say many adverse effects could be avoided if BNPL lenders were required to verify a consumer’s ability to repay before the first loan was made. Instead, as with payday loans, each billing cycle tends to worsen, rather than improve, the borrower’s financial situation, dragging them deeper into the debt trap.

Just a month later, in December 2021, consumer and economic justice advocates applauded the CFPB when it announced it would open an investigation into the BNPL’s big lenders.

“By opening this investigation, the Office of Consumer Affairs is taking an important first step in understanding this industry and preventing harm to consumers,” said CRL’s Torres.

Without vigilant oversight and proper regulation, warn Torres and other advocates, products promising to promote financial inclusion could instead exacerbate financial exclusion.

Last March, a coalition of 77 organizations representing national consumer organizations and advocates from 16 states and the District of Columbia sent a letter urging the CFPB to treat BNPL as a form of credit and subject lenders offering the products to regulation under appropriate consumer financial protection laws. like TILA. This law requires responsible underwriting, disclosure of fees, and the ability to dispute billed items.

Without regulation, the growing use of BNPL could lead to further financial harm for consumers, especially those with the least financial resources.

Charlene Crowell is a senior researcher at the Center for Responsible Lending.

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Do you want engaged employees? Invest in their financial well-being https://stormbirds.net/do-you-want-engaged-employees-invest-in-their-financial-well-being/ Sun, 24 Apr 2022 14:18:51 +0000 https://stormbirds.net/do-you-want-engaged-employees-invest-in-their-financial-well-being/ Learning to manage money was a required field of study in my childhood home. On the first day of the month, my father would sit at the dining room table to balance his checkbook and pay the household bills. My four siblings and I knew what would happen if we passed by while he was […]]]>

Learning to manage money was a required field of study in my childhood home. On the first day of the month, my father would sit at the dining room table to balance his checkbook and pay the household bills. My four siblings and I knew what would happen if we passed by while he was in that area. We would have a course on financial responsibility. I learned four valuable lessons that many adults, especially those in the black and brown community, were unaware of.

First, pay yourself first. Before you spend anything, set aside some savings. The amount can change but the act must be routine. Second, never live beyond your means. If you can’t afford it, you don’t need it. Third, your ability to repay a loan is a bigger asset than what you earn. And finally, more money does not solve money problems. If you can’t responsibly manage a $100 budget, you won’t be good with $100,000 either.

My father prepared his children to navigate a world of work very different from that of his generation. Today, most workers no longer work at jobs that provide a pension. Instead, it is more up to individuals to save for retirement by contributing to 401k or other retirement accounts. People are also jumping from job to job more often and are therefore faced with financial choices at every turn. Additionally, a quarter or more of today’s workforce works in the gig economy, which offers even fewer workplace-managed financial benefits.

All in all, the burden of financial well-being has gradually shifted from the employer to the individual, but I see signs of a small pendulum swing in the other direction. Given the current talent shortage, the challenges of COVID-19, and the multitude of online financial wellness tools and products, businesses are able to focus more on the financial wellbeing of employees, which is highly desired. More than half of employees say they would be attracted to a company that cares about financial well-being over their current employer, according to research from PwC.

I see three areas that employers are focusing on to ensure better financial well-being for workers. They are:

Equity.

This year, Equal Pay Day in the United States is March 15. It highlights how hard a woman has to work, on average, to earn what a man did in the previous year, given similar jobs with similar skills and experience. Many companies are working to close this gap and keep it closed. For example, my company’s 2021 review found less than 1% disparity between what women and men earn globally at Ceridian, and less than 1% disparity between what white and non-white employees earn. in the USA. employees worldwide, our company will conduct another analysis in the second half of 2022.

It’s no surprise that gender and racial inequalities continue to plague our society. The systemic barriers in place faced by women and people of color will take decades to break down. As President Joe Biden noted in an Equal Pay Day proclamation, over the course of a career, the pay gap can amount to hundreds of thousands of dollars in lost income, especially for women of color, which has a significant impact on retirement savings and a unique burden. households headed by single mothers.

Employers of all sizes must work to close these gaps and keep them closed, so that all workers have the fairest chance possible to improve their financial well-being.

To access.

That’s what my dad was talking about when he said my ability to repay a loan was a great asset. But not everyone has the same access to credit. Historically, minorities have disproportionately faced exclusionary behaviors and systemic barriers that have contributed to economic disparities, including limited access to federal mortgage programs and geographic restrictions on physical banking locations. While 5.4% of U.S. households were unbanked in 2019, nearly 14% of black households and 12% of Hispanic households were unbanked, according to government data. Without immediate access to traditional lines of credit, these groups are more likely to use high-interest payday loans.

Pay-as-you-go, or access to earned wages, is an emerging benefit increasingly embraced by employers allowing workers to access earned wages when they need it most. Four in five (83%) American workers aged 18-44 think they should have access to their earned wages at the end of each workday/shift, before the traditional payday, according to research by my work place. Mizuho Securities USA speculated that pay-as-you-go could be both the biggest change in the payroll industry since the 1960s and a disruptor for the $11 billion payday loan market.

Literacy.

Companies have a fiduciary responsibility to provide financial education to their employees. They have the people to manage business results and the means to help employees manage their results. Money problems are only solved with education, dedication and an implemented plan. Companies that meet this need will find student volunteers among the workforce. 87% of employees want help with their personal finances, PwC notes.

My dad taught financial wellness classes because he cared about his kids. In any organization, people are the most important asset. We trust our employees to serve our customers, promote our brands and grow our business. The healthier they are, the more present they will be at work and outside of it.

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

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Some struggle to pay property taxes and turn to high-interest lenders https://stormbirds.net/some-struggle-to-pay-property-taxes-and-turn-to-high-interest-lenders/ Wed, 20 Apr 2022 10:00:00 +0000 https://stormbirds.net/some-struggle-to-pay-property-taxes-and-turn-to-high-interest-lenders/ The surge in property valuations released this month has left many homeowners reeling. As some struggle to pay taxes, 2022 could bring revival to a controversial industry. Property tax lenders offer to help desperate homeowners and businesses protect their properties from foreclosure by offering immediate loans at high interest rates. After years of steady growth, […]]]>

The surge in property valuations released this month has left many homeowners reeling. As some struggle to pay taxes, 2022 could bring revival to a controversial industry.

Property tax lenders offer to help desperate homeowners and businesses protect their properties from foreclosure by offering immediate loans at high interest rates. After years of steady growth, the pandemic has cut its fortunes short, but some see the conditions ripe for a comeback.

“It’s definitely been a good year after a few pretty tough years before,” said Andy Cahill, president of Johnson & Starr, an Austin-based property tax lender that serves homeowners across the state. “I suspect this will be the best year we’ve seen in a long time.”

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5 ways to get cash when you need it https://stormbirds.net/5-ways-to-get-cash-when-you-need-it/ Tue, 12 Apr 2022 23:31:01 +0000 https://stormbirds.net/5-ways-to-get-cash-when-you-need-it/ Quick access to cash is crucial in times of financial emergency. Whether it’s a car repair, a medical bill, or just an unexpected expense. But what if you don’t have any savings or emergency funds to tap into? How will you get the money you need? You may think there are no other good options, […]]]>

Quick access to cash is crucial in times of financial emergency. Whether it’s a car repair, a medical bill, or just an unexpected expense. But what if you don’t have any savings or emergency funds to tap into?

How will you get the money you need? You may think there are no other good options, but there is not. You have other options, and some are even better than dipping into your savings.

For a little help, here are five ways to get emergency cash.

Sell ​​some of your possessions.

A great way to make some quick cash is to sell items in your home that you don’t use or need. For example, you can hold a garage sale, sell things online, or even pawn some of your possessions.

So if you have a lot of clothes you never wear, consider selling them to a consignment store. Another thing, if you have extra furniture, appliances or other items taking up space in your home, you can sell them online through classifieds, auction sites or even media platforms. social.

Also, if you have valuable jewelry or collectibles that you no longer need, consider selling them to a pawnbroker. Or, if you have a lot of school supplies or toys that your kids have outgrown, sell them to other families in your community.

By selling items you don’t need or use, you can free up space in your home and get money to invest in something new.

Use your credit card.

If you have good credit, you may be able to get a low-interest credit card that offers cash advances. Depending on your credit score, you may be able to get a card with a 0% APR on cash advances for a while. This can be useful if you have to pay for something unexpected and you don’t have any spare cash.

However, zero percent interest is not forever. There is a time limit on how long you can take advantage of the interest-free period. Once this time has elapsed, the regular APR will apply to any remaining balance. Some cards offer up to six months interest-free on cash advances, while others offer a year or more.

Apply for a payday loan

Another way to help cover unexpected expenses is to apply for low interest online payday loans. This type of loan is a short-term solution that can help you bridge the gap between your current expenses and your next salary.

When you apply for a payday loan online, you usually need to provide proof of income, such as a recent pay stub or bank statement. Additionally, you will need to provide your social security number and contact information.

The approval process for an online payday loan is usually quick and easy, and you can receive the money you need within 24 hours. So, if you are facing a financial emergency, an online payday loan may be the solution for you.

Ask family and friends for a loan

Before you decide to take out a loan from lenders, why not try to apply for a loan from your friends or family? It may be harder to get a loan from a bank if you have bad credit, but friends and family are likely to be more forgiving.

Moreover, they relate to you better than a credit institution. But you may have heard or know of people who have damaged their relationships with friends and family members by asking for money. Well, probably because they never bothered to ask in the right way.

There are a few key things you need to keep in mind if you are going to ask your loved ones for money: be upfront about how much money you need, make sure you can afford to repay them with interest and give them a refund. plan. Have a written agreement and make sure both parties sign it.

Check out nonprofit programs for help

Many nonprofit organizations can help you get the money you need. Take, for example, Mission Asset Fund. The organization offers loans and grants to help people get out of debt.

The National Foundation for Credit Counseling is another great resource for getting help with your debt. The organization provides counseling and financial education services to consumers across the country.

If you’re looking for a more local solution, consider contacting your nearest credit union. Credit unions are non-profit organizations that exist to serve their local community.

Conclusion

Whichever option you choose, be sure to do your research and compare interest rates and fees. Knowledge is power when it comes to your finances. So be sure to do your homework and make the best decision no matter what situation you find yourself in.

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