In today’s 2 Minute Q&A Tuesday, we’re going over some banking drama about Fintech customers getting early direct deposits of their stimulus check. This was a full-on Twitter trend and it was hot! I will share some resources to learn more about the “tea” and about the changes in the banking industry.
Early Access to Direct Deposit
Chime and many new fintech companies are changing the game by offering early access to your direct deposit. But, How? Well to keep it simple, Chime is upfronting the payments to their customers. Instead of waiting for your direct deposit ACH to clear like most banks, Chime is using their funds to get you paid early. This is a big benefit to the millions of Americans who live paycheck-to-paycheck and need the funds right away. Chime’s CEO Chris Britt shared some interesting words to better explain how and why they offer this unique feature.
Chime Resources:
- This startup is giving customers early access to billions in stimulus checks
- Wells Fargo, JPMorgan draw ire over stimulus payment release date
- Chime: Get Paid Early
Expanding Same-Day ACH
Now, I know all this banking drama between big banks and fintech companies might be a bit funny. But, it’s actually bringing good points to light. With so many people who need their funds quickly, NACHA the clearinghouse for the ACH network is making some changes. They’re extending same-day ACH processing window by 2 hours every business day. This means that more people will be able to get quicker access to their funds instead of waiting days for their funds to clear. This is a sign that not all drama is bad drama.
NACHA Resources:
- Expanding Same-Day ACH
- IRS Will Provide Funding for Tens of Millions by Direct Deposit Effective Wednesday, March 17
Other Related Content
- Maximize your Stimulus Check
- Stretch Your Dollars During Uncertain Times
- How to Prepare for a Recession with an SOP
