Banking news roundup, July 7, 2023

Missouri Governor Michael Parson has actually signed a law that needs business that provide made wage access to have a license. The law likewise codifies customer securities, and prohibits late charges, financial obligation collection and a no-fee choice for EWA users–arrangements comparable to Nevada, which passed an EWA law previously this month. EWA allows employees to access a part of their wage prior to their set up payday. The item has actually ended up being more popular over the previous numerous years, initially throughout the pandemic and after that throughout the inflation spikes in 2022. Fintechs that have actually generally provided EWA though banks are beginning to get in the marketplace. Similar to purchase now/pay later loaning, EWA, which is mainly uncontrolled on the federal level, has actually drawn critics who are worried the item might produce liquidity obstacles for customers. Kansas, New York, California and Texas are amongst the other states that might control EWA. — John Adams 


A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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