In today’s top news in digital-first banking, Fifth Third Bank introduced an offering that provides early access to paychecks, while Deposit Solutions and Raisin plan to merge to create a pan-European group. Plus, the Fed’s annual bank stress tests indicate that large banks have sufficient capital to keep lending during a severe recession.
Fifth Third Bank unveiled an offering that provides early access to paychecks for clients of the firm’s Momentum Checking platform. Early Pay launched in some markets earlier this year and assisted customers in steering clear of overdraft fees. In addition, it eliminated the need for some of these individuals to turn to payday lenders. “With Early Pay and Momentum Checking’s other features, we’re giving customers the widest range of options to access their money faster and avoid fees,” Tim Spence, president of Fifth Third Bancorp said, as previously reported.
Deposit Solutions and Raisin, two sizable German financial technology firms, will be joined together into a new pan-European group. The combined firm is to be named Raisin DS. It will be based in Berlin and have approximately 400 banking partners in addition to more than 500 staffers. “We help banks raise retail deposits efficiently and cost-effectively by connecting them digitally with consumers nationwide and delivering the full deposit value chain,” Deposit Solutions says on its website, while Raisin claims to be “Europe’s #1 deposit marketplace.”
In the event an acute recession were to take place, the Federal Reserve’s annual bank stress tests indicate that large banks continue to maintain formidable capital levels and could keep lending to individuals and companies. “Over the past year, the Federal Reserve has run three stress tests with several different hypothetical recessions and all have confirmed that the banking system is strongly positioned to support the ongoing recovery,” Vice Chair for Supervision Randal K. Quarles said in an announcement.