PayPal's upbeat earnings call came with the announcement of Schulman's departure and prudent guidance for 2023.
The love-child of Moneylion's Even aquisition, Engine, looks to create tools for even non-financial companies to embed personalized products.
Jiedaibao, launched by JD Capital, would give people looking to engage in debt recovery all kinds of personal data belonging to overdue debtors, including phone numbers, addresses and even ID card numbers; releasing this kind of information would allow for any freelance debt collector to harass borrowers into paying their overdue amounts; this type of practice in China is not all that unusual as past debt collection efforts have discussed the release of nude photos if payments are missed; the agreement would give the "debt collector" 40% of the debt paid. Source
A new study conducted by the Center for Financial Services Innovation (CFSI) and Core Innovation Capital found that the underserved banking customer paid $141 billion in fees while at the same time accounting for $1.6 trillion in economic activity; the underserved or underbanked are defined as the 67 million who do not use a bank account but use prepaid cards and other alternative finance options to handle their money; according to CFSI president and CEO Jennifer Tescher, the biggest driver behind the fees are auto insurance and subprime installment lending. Source
Increased challenges have buffeted an already unstable SME lanscape - Is B2B BNPL a saving grace or could it ultimately worsen conditions?
A legal case initiated by the city of Miami, Florida has reached the Supreme Court; the case (a combination of two earlier cases) claims that banks, including Bank of America and Wells Fargo, are financially liable for a decade of targeting blacks, Latinos and other minorities for loans with risky terms, including prepayment penalties, negative amortization and no documentation; there is concern that the case may be delayed until the Supreme Court regains a tie-breaking ninth Justice, or result in a return to the lower courts. Source
Moody's has released a report commenting on the new FDIC guidelines for bank lending through third-party lenders; guidance from the FDIC is proposed and seeks to potentially improve controls on bank lending through marketplace loans; the new FDIC guidance will help to improve the overall quality of loans on marketplace lending platforms, according to Moody's; the new controls focus on greater analysis and oversight by banks of marketplace lenders' credit underwriting models to ensure that they align with the bank's lending terms. Source
Dealmakers West is an all-meetings event happening in Laguna Beach on Aug. 30-31.
The market's reaction to Twitter's frenzy could indicate trust issues in the finance sector that fintechs if prepared, could bridge.
TransUnion added lending decision firms to its Strategic Alliance Distribution Partner Program, like the fintech Provenir and GDS Link.