Fenway Summer

DriveWealth CEO Michael Blaugrund, CFA shares exciting plans for our future in this Mergermarket article by Deborah Balshem: https://lnkd.in/epetxD5J #WealthTech #Fintech

In fintech, staying up to speed on regulatory changes is crucial, especially those that can significantly impact the market and early-stage companies. With a number of developments central to fintech – bank partnership models, access to capital initiatives, what is and isn’t a credit product, etc. – seemingly embroiled in regulatory ambiguity, there may often be more questions than answers. The Consumer Financial Protection Bureau's recent semi-annual report dives into developments from the first half of 2024, highlighting new data collection requirements under amended Regulation B, and some updates to Regulation Z and the Truth in Lending Act. To me, these changes have potential to reshape commercial lending and consumer credit landscapes. For fintechs, the amended Regulation B will introduce a significant compliance burden, requiring the collection and reporting of detailed data on small business credit applications, namely demographic information. This entails substantial obligations but also presents a strategic opportunity – fintechs that can efficiently capture and leverage this data will gain a competitive advantage. These insights can facilitate customized product designs and inclusive underwriting models, with a core intent to enhance fair practices and identify discriminatory trends. The public release of this data can also benefit fintechs by highlighting underserved markets and opportunities, and the increased focus on fairer access could drive product innovation tailored to the needs of minority-owned and women-owned small businesses, a prospect I am especially bullish on. In addition to Reg B, Reg Z and TILA emphasize consumer credit transparency. Fintechs must ensure that their lending practices comply with these disclosure requirements to enhance consumer understanding and trust. Accurate APR disclosure is critical, and fintechs need proper systems to calculate and communicate APRs effectively, preventing misleading practices. TILA also sets standards for advertising consumer credit, necessitating that fintechs review their marketing materials to ensure compliance and avoid deceptive practices. As early-stage fintechs look to develop marketing plans, product rollouts, and compliance frameworks, all these pieces must fall into place for optimal outcomes to be had. I think the path forward for fintechs involves prioritizing robust fair lending compliance systems, leveraging ethical AI/ML models to mitigate bias, and designing inclusive products centered on both small business and consumer credit data. Those who turn these compliance requirements into a competitive advantage by promoting equitable lending and transparent practices can unlock substantial market opportunities. While adapting to these changes will be challenging, the benefits for those committed to advancing fair and inclusive financial services are significant. That’s the block I’m on, and the weather is great over here. If you’re on that block too, let’s connect! 

Just 2.5 weeks into the soft launch of the Transend platform and we couldn’t be happier with how we’ve been able to help our suppliers and bank partners in such a short timeframe: ✍ 1,000 suppliers onboarded across the U.S. 💵 ~$20MM in working capital established 💫 $0 sales and marketing costs This is just the start as we continue to bring partnership back into payments and are inspired every day to help drive real impact for our customers. #FintechDisruption #smallbusiness #communitybank #suppliers #fintech #payments #TeamTransend

Attending #EMERGE2024? Fenway Summer's Managing Partner, Raj Date, will be discussing the past 20 years of financial health in America, along with the challenges and opportunities that lie ahead. At Fenway Summer, we believe deeply in the power of innovation to champion financial inclusion, wellness, and a thriving financial environment for all. Stop by the main stage on Wednesday, June 5th, at 1:00pm to join. We hope to see you there. #EMERGE #FinancialHealth #FHN20

"The Visionary Award is one of four Instinet Positive Change Awards recognizing achievements with far-reaching impact. The idea is to showcase individuals and firms who go beyond just excelling at their day jobs to also be agents for positive change in the world around us."  -Markets Media Congratulations Roman Ginis! Fenway Summer is a proud investor in Imperative Execution Inc.

“We meet customers where they are — even with no bank account or formal credit history, we create access to financial services and carve a path into the financial system,” said co-founder and CEO Doug Ricket. At Fenway Summer we believe in the power of technology to enable financial inclusion worldwide, and we are proud investors in PayJoy.

Last week Managing Partner Raj Date shared his perspective on the future of the financial regulatory system and what should be top of mind for founders at the ResilienceVC annual meeting. Fenway Summer is a proud LP in emerging managers, and with ResilienceVC we have the distinct pleasure of being both an investor in the fund and co-investor in early stage fintech companies.

We're excited for this week at the Empire Startups - Everything FinTech Conference. We hope to see you there!

Are you driven to create innovative solutions for a more resilient and sustainable future? 🌎 Circle’s third Unlocking Impact Pitch Competition will be held in Washington D.C. on April 24th, and we are seeking projects focused on: 👉 climate change and environmental conservation 👉 sustainable energy and resource management 👉 economic growth and financial inclusion 👉 disaster preparedness and humanitarian aid delivery Winning projects are eligible to receive grant funding support of up to $100,000 in #USDC. Entries are due by April 12th. Submit your application today.

There is still time to register for next weeks Urban Institute event titled "Private Data, Public Impact: Unlocking Insights to Advance Financial Well-Being." We hope to see you all there!