Aloha, Toaster Readers! 🤙

This week's edition is coming to you straight from a beach chair in Kauai. As you might guess, we're running on island time, so this issue is a little lighter than usual.

You'll also notice it's primarily text-only. The ocean was calling, and honestly, it was a much better offer than photo editing.

We're taking next week off to fully recharge (at least for our news edition), but we'll be back in your inbox the week of August 18th with lots to share.

Now, let's dive in!

(Toaster Podcast) E029 - Income Verification, With Kirill Klokov, CEO at Truv

We asked Truv CEO Kirill Klokov how to master income verification, from choosing a provider to reducing borrower drop-off. He also explains why payroll data is key to fighting AI fraud and how new "pay-when-it-closes" models benefit lenders.

(Cards) Citi Launches the Citi Strata Elite Credit Card / Citi Charges $595 for ‘Strata Elite’ Credit Card to Rival Amex, Chase Citigroup has introduced the Citi Strata Elite, a new premium credit card aimed at competing with high-end offerings from American Express and JPMorgan Chase, carrying a $595 annual fee. The card offers substantial rewards, including 12x points on certain Citi Travel bookings and 6x points on air travel and weekend dining. It also features over $700 in potential annual credits for hotels, specific "splurge" brands like Best Buy and Live Nation, and Blacklane chauffeur services, alongside American Airlines lounge passes. [Citigroup.com] [Bloomberg]

(Partnerships) JPMorgan Chase and Apple Near Deal on Credit Card Partnership JPMorgan Chase is reportedly close to finalizing an agreement to become the new issuing partner for the Apple Card, taking over the portfolio from Goldman Sachs. Negotiations, which began earlier this year after Goldman sought to exit the partnership due to losses, have accelerated recently. [The Wall Street Journal]

(Earnings) SoFi Reports Second Quarter 2025... / SoFi raises guidance after surging past estimates in Q2 SoFi Technologies announced record-breaking results for the second quarter of 2025, significantly exceeding Wall Street expectations with $855 million in net revenue and $97 million in net income. The strong performance was driven by accelerated growth in both membership and product adoption. Buoyed by these results, SoFi has raised its financial outlook for the remainder of 2025 and noted potential future growth opportunities as the regulatory environment for cryptocurrency evolves. [SoFi Investor Relations] [American Banker]

(EWA) Live Pay On EarnIn Card / Secured cards find new niche in earned wage access Earned Wage Access (EWA) provider EarnIn has introduced Live Pay, a service that "streams" a user's earnings directly onto a secured Visa card as they are earned. This approach utilizes the secured card model to provide immediate access to wages without relying on traditional credit scores, requiring only a recurring paycheck and a linked deposit account. This innovative application of secured cards for EWA offers a potential model for traditional banks to replicate. [EarnIn.com] [American Banker]

(Earnings) LendingClub exceeds estimates alongside new product launch LendingClub reported strong quarterly financial results that surpassed analyst estimates, signaling resilience as previous fears regarding the impact of tariffs begin to ease. In addition to the positive earnings, the online lender-turned-bank announced the launch of a new product offering. Furthermore, company executives indicated plans for a corporate rebranding effort in the near future. [American Banker]

(Fundraising) Andreessen Horowitz’s Alex Rampell Upbeat as FinTech Salient Closes $60M Series A / US loan servicing fintech Salient bags $60m in Series A funding Salient, a U.S.-based FinTech specializing in loan servicing technology, has successfully raised $60 million in its Series A funding round. The investment attracted significant attention, notably from venture capital firm Andreessen Horowitz. Alex Rampell, a partner at Andreessen Horowitz, expressed strong optimism regarding Salient's potential and growth trajectory in the loan servicing market. [citybiz] [FinTech Futures]

(Payments) Cash App Begins Rollout of Group Payments Feature Cash App is introducing a new feature called "Pools," designed to streamline group payments for shared expenses such as vacations or gifts. This peer-to-peer tool allows users to create a pool, request contributions via the app or a link, and track the funds collected. The feature supports payments via Cash App, Apple Pay, and Google Pay, and is currently being rolled out to select customers before a wider release. [PYMNTS.com]

(AI, Stablecoins) Visa CEO Sees AI and Stablecoins Powering Tomorrow’s Digital Payments Following a strong Q3 2025 earnings report marked by a 14% revenue increase, Visa CEO Ryan McInerney emphasized the company's strategic focus on artificial intelligence and stablecoins as key drivers for the future of commerce. Visa is actively piloting stablecoin settlements to improve cross-border transaction efficiency and developing AI-powered tools to enhance payment flexibility. The company aims to leverage its global network to orchestrate these emerging payment technologies rather than competing against them. [PYMNTS.com]

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(IPO) Klarna Considers Restarting IPO Plans as Market Picks Up Buy Now, Pay Later giant Klarna is reportedly reconsidering its initial public offering in the U.S., potentially aiming for a launch as early as September. The company had previously filed with the SEC in March but paused its plans in April due to market volatility caused by new U.S. tariffs. Renewed interest follows strong debuts by other companies and a recent rebound in the FinTech market. [PYMNTS.com]

(Earnings) Mastercard Q2 Revenue Jumps 17% as Demand for AI and Cybersecurity Grows Mastercard reported a 17% increase in Q2 revenue, reaching $8.1 billion, driven by resilient consumer spending and a 9% rise in gross dollar volume. The company highlighted significant growth (23%) in its value-added services segment, fueled by demand for cybersecurity, authentication, and fraud prevention tools. Mastercard is also heavily investing in "multi-rail" capabilities and AI innovation, exemplified by the launch of Mastercard Agent Pay, which uses conversational AI for secure payments. [PYMNTS.com]

(Macro) BLS Reports Unemployment Remains Above 4% Despite July Job Gains The U.S. labor market showed signs of cooling as the unemployment rate remained steady at 4.2% in July, with the economy adding a modest 73,000 jobs. The Bureau of Labor Statistics report included significant downward revisions for May and June job growth, surprising analysts. This slowdown in economic momentum has intensified market expectations for a Federal Reserve interest rate cut by October. [PYMNTS.com]

(Macro) Consumer Sentiment Still Broadly Negative Despite Small Improvements in July The University of Michigan’s Surveys of Consumers indicated a slight improvement in consumer sentiment for the second consecutive month in July, rising 1.6% from June. Despite this modest uptick and a decrease in short-term inflation expectations, the overall sentiment remains 17% below December 2024 levels. Consumers are still broadly negative about the economy's trajectory, even as immediate worries have softened since April. [PYMNTS.com]

(Credit Union) As the credit union industry booms, who's watching? A recent boardroom shakeup at the National Credit Union Administration (NCUA) has sparked intense debate over the regulation and direction of the rapidly expanding credit union sector. As the industry experiences significant growth, stakeholders are questioning the adequacy of current oversight. The central issue is whether these institutions are adhering to their foundational mission amid their boom. [American Banker]

(AI) How KeyBank is creating 'cognitive banking' with AI KeyBank is collaborating with the AI firm Personetics to develop what it calls "cognitive banking" for its digital customers. This initiative aims to leverage artificial intelligence to provide highly personalized financial advice and assistance. By analyzing customer history, current circumstances, and transaction data, the bank seeks to offer proactive and context-aware support. [American Banker]

(Underwriting) VantageScore CreditGauge™ June 2025: Subprime Credit Delinquencies Increase The June 2025 VantageScore CreditGauge report indicates rising financial stress among subprime consumers, with a growing portion progressing into more severe delinquency stages. Auto loans showed the most significant increase in delinquencies across all credit products, surpassing pre-pandemic levels. Concurrently, lenders are becoming more cautious, leading to a decline in new credit card and loan originations compared to the previous year. [PRNewswire]

(Underwriting) US Credit Card Delinquencies Creep Up Past Pre-COVID Levels Credit card delinquencies and charge-offs in the U.S. rose in June, now exceeding levels recorded before the COVID-19 pandemic. The average delinquency rate hit 2.79%, while the net charge-off rate reached 3.99%, indicating increasing pressure on some consumers due to inflation and high interest rates. In response, banks are reportedly tightening lending criteria for lower-income borrowers and focusing efforts on attracting higher-income, premium card users. [PYMNTS.com]

(Earnings) Rocket Companies (NYSE:RKT) Delivers Impressive Q2, Stock Soars Rocket Companies announced second-quarter 2025 financial results that significantly surpassed market expectations. The strong performance highlighted the company's robust position in the mortgage and financial services sectors. Following the announcement, Rocket Companies' stock experienced a notable surge in trading. [PRNewswire]

(Cards) Credit-Card Users Are Cautious Now. Rate Cuts Could Open the Floodgates. Consumers are currently demonstrating restraint in their credit card usage, likely due to prevailing high interest rates and economic uncertainty. However, analysts suggest that this cautious behavior may shift significantly if the Federal Reserve initiates interest rate cuts. A lower rate environment may encourage a significant surge in consumer spending and credit utilization. [The Wall Street Journal]

(Regulation) The CFPB intends to start writing a new data-sharing rule The Consumer Financial Protection Bureau (CFPB) has signaled its intent to draft new regulations concerning consumer financial data sharing. This move indicates a plan to re-examine and formalize the rules governing how bank customer data is accessed and shared with FinTech companies, particularly through data aggregators. The agency communicated this intention to a Kentucky court, suggesting a renewed focus on open banking standards and consumer data rights. [American Banker]

(Underwriting) One-third of Americans say lying on credit applications is acceptable A recent survey conducted by FICO reveals that 33% of Americans believe it is acceptable to exaggerate income when applying for credit. This statistic highlights a significant normalization of application fraud among consumers. Ironically, the survey also found that many of these same individuals prioritize strong fraud prevention measures from their banking institutions. [American Banker]

(EWA, Regulation) Earned wage access regulation by state: A complete guide The regulatory landscape for earned wage access (EWA), or on-demand pay, is becoming increasingly complex as 12 states have now enacted specific laws governing the practice. While many states follow similar general frameworks, critical distinctions in the details are emerging with each new regulation. This evolving patchwork of state laws requires close monitoring by providers in the EWA industry. [American Banker]

(AI) AI is the new UI for banks Artificial intelligence is rapidly transforming the banking sector by becoming the primary user interface (UI) for customer interactions. This shift indicates that AI-driven platforms, such as advanced chatbots and virtual assistants, will increasingly manage and define the customer experience. Banks are adopting this technology not just for back-end processes, but as the new frontline for service delivery. [FinTech Futures]

(Payments) Mastercard Unveils Next-Gen B2B Payment Solutions Mastercard has launched a suite of next-generation payment solutions aimed at modernizing the business-to-business (B2B) payments landscape. These new tools are designed to streamline complex B2B transaction processes, particularly focusing on improving efficiency in supplier reconciliation. The initiative aims to address friction points in commercial payments and enhance overall operational effectiveness for businesses. [FinTech Magazine]

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