Upgrade is latest fintech to seek ILC charter
Neobank Upgrade has appliedfor an Industrial Loan Company Charter with the Federal Deposit Insurance Corp. and the Nevada Financial Institutions Division, according to the company.
The firm, which bills itself as providing “affordable and responsible credit” to the general public, said the ILC charter would complement Upgrade’s established relationships with partner banks and purchasers of loans, and would allow the company to better fund credit products. More here.
How real-time pay is pressuring bank authentication
Instant paymentscreate an additional layer of customer authentication challenges for banks.
Unlike with cards, there’s no single, centralized way to confirm an account is open, active and owned by the person or business getting paid. And, unlike the United Kingdom or European Union, the U.S. has no all-encompassing regulations requiring banks to employ strict verification.
The lack of federal regulation makes for a patchwork of rules guiding verification and identity risk.Here’s what payment experts say banks can do.
Here are more of today’s top stories from American Banker:
- Earnings are a reflection of customers as well as banks.Read the full story here.
- Ex-Fed nominee Shelton tapped to advise Treasury’s Bessent.Read the full story here.
- Trump establishes committee to investigate Fed’s Cook.Read the full story here.
