Gunjan Banerji, lead writer for live markets coverage at The Wall Street Journal, shares insights on Squawk Box about the surge in high-risk stock market trades, the growing popularity of zero-day options and cryptocurrency trading, and the potential negative impact on investors’ well-being.
In a high-stakes legal battle, the Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart Inc. and its fintech partner, Branch Messenger Inc., alleging they illegally opened bank accounts for over a million delivery drivers without their consent.
The CFPB claims Walmart’s Spark Driver program forced delivery drivers to accept costly deposit accounts with Branch Messenger under the threat of termination. These accounts were allegedly opened using drivers’ sensitive personal information, such as Social Security numbers, without proper consent.
Drivers faced fees exceeding $10 million to instantly transfer their earnings to a personal account, despite being misled with promises of “instant access” to their pay. In reality, many drivers encountered delays in accessing their funds, according to the lawsuit.
The CFPB is seeking to halt these practices, secure compensation for affected drivers, and impose civil penalties on Walmart and Branch. CFPB Director Rohit Chopra criticized the companies for their conduct, stating, “Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers.”
While Walmart has not commented on the allegations, Branch has issued a strong rebuttal, calling the lawsuit a misrepresentation of the facts and accusing the CFPB of rushing to litigation without proper engagement.
“Branch stands behind its model and services and will defend this action vigorously,” the company said in a statement, arguing that their platform provides valuable services to Walmart and its drivers.
The lawsuit comes as the CFPB steps up its enforcement actions in the final months of the Biden administration. This case follows recent lawsuits against major banks over Zelle fraud and the introduction of new overdraft fee caps.
Walmart’s Spark delivery program, launched in 2018, relies on independent contractors to deliver online orders. With e-commerce sales rising over 20% in the latest quarter, the lawsuit has sparked concerns over Walmart’s treatment of its gig workers. The controversy has also impacted Walmart’s stock, which fell 3.2% following the announcement.
The CFPB aims to secure justice for affected drivers while shining a spotlight on the practices of fintech-bank partnerships. As the case unfolds, it will test the boundaries of how gig economy workers are treated and highlight the regulatory scrutiny faced by fintech platforms.
Stay tuned for updates as this case develops, shedding light on the evolving relationship between fintech, major corporations, and labor practices.
Explore the Future of WealthTech in a High-Energy Demo Session!
Get ready for a fast-paced, demo-style event where seven cutting-edge fintech companies will unveil their latest, never-before-seen tools and solutions in WealthTech. Each company will have just seven minutes to showcase their innovations, offering a glimpse into the future of financial technology.
Stay tuned—this summer, the participating companies and their groundbreaking tools will be announced. Don’t miss the opportunity to discover the next big advancements in WealthTech!
In this podcast episode, Mark Goines, a pioneer in personal finance technology, discusses his groundbreaking work on iconic products like TurboTax, Quicken, and Personal Capital, which have transformed financial services and wealth management.
The episode dives into the future of retirement planning, the influence of AI in finance, and the emergence of hybrid financial advisory models. Mark highlights how innovations in digital tools, SaaS platforms, and customer-focused design are reshaping the way retirees and financial planners approach money.
Whether you’re planning for retirement, working in financial advisory, or passionate about the intersection of technology and personal finance, this podcast is filled with valuable insights into the evolving world of financial independence.
In this inspiring episode of Wise Underdogs , Benjamin Fernandes—Tanzanian entrepreneur, founder of NALA, and a leading force in African fintech—shares his remarkable journey of raising over $100 million to reshape the financial technology landscape across Africa.
From his academic milestones at Stanford and Harvard to leading NALA as the first East African fintech accepted into Y-Combinator, Benjamin reveals the driving force behind his mission to simplify cross-border payments and empower millions across the continent.
Discover how he turned down lucrative opportunities in the U.S. to return to Tanzania, demonstrating the power of purpose-driven leadership in achieving transformative impact.
Looking Ahead: What Are the Top Trends for Fintech in 2025
In this episode of Deciphered, Adam Davis, an expert associate partner at Bain & Company, and Jeff Tijssen, Bain’s partner and global head of Fintech, sit down with an all-star Bain panel featuring Karim Ahmad, expert partner; Mike Smith, expert partner; and Tevia Segovia, partner. Together, they delve into the key Fintech trends expected to shape 2025.
Tracy V. Maitland, often referred to as the “king of convertible bonds,” is the founder and president of Advent Capital Management, a New York-based asset management firm specializing in convertible securities. Raised in the Bronx, Maitland is the son of a surgeon who once operated on Dr. Martin Luther King Jr. after he was stabbed at a 1958 book signing. In 1987, after starting his career at Merrill Lynch, Maitland became head of convertible bonds at the company. Eight years later, he founded Advent Capital, which now manages approximately $9 billion in assets, with over $8 billion invested in convertibles.