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MonJa’s Digital Banking and Lending Monthly Roundup – Why Subscribe?
Digital banking and lending are evolving rapidly. Recent fintech-banking partnerships and innovation in technology with the introduction of AI, ML and blockchain herald a new era in lending. Fintech’s are changing the competitive ecosystem, empowering lenders to process loans faster and smarter. In a world full of noise, understanding how the technologies and developments may impact your financial institution’s credit decisions and credit portfolio is of critical importance, while also you can improve your finance by learning online trading, as there are resources like trade fx that help you with this. With MonJa’s Digital Banking and Lending Monthly Roundup, it’s easy to stay up to date on what’s happening in the space. Get the latest updates, analysis and commentary on digital banking and lending segment!
For around ten years, PNC has been experimenting with tellerless branches with prototypes located in Wilkinsburg and Bakery Square in Larimer. PNC Bank intends to convert approximately 60% of its branches countrywide over the following five years to a new technology-focused model that does away with teller stations and instead focuses on providing financial advice. According to Jim Balouris, executive vice president and retail market manager for southwestern Pennsylvania, this choice will not result in a reduction in employment levels. Instead of performing transactions, workers will spend more time conversing. These adjustments are being prompted by consumers’ rising usage of electronic services, as is the case with many other credit unions. According to the Post-Gazette, some of PNC’s rebuilt branches, those with the most traffic, will acquire video banking equipment connecting consumers to live tellers to complete more complex transactions.
06/27/22 CU Loans Up Nearly 2% in April, Plus, Other Data in New CUNA Estimates (CU Today)
According to Monthly Credit Union Estimates of CUNA, credit union loan outstanding increased 1.9% in April, compared to a 1.8% growth in March 2022 and 0.5% growth in April 2021, with home equity loans leading the way with a rise of 4.6%. Credit union savings balances increased by 0.7% in April, compared to a 1.8% increase in March 2022 and a 1.7% increase in April 2021. Share drafts increased by 2.3%, while one-year certificates remain unchanged. Individual retirement accounts faced a decline of -0.2%. The loan-to-savings ratio increased by 0.8% in April(71.8%) as compared to March(71.0%) and the liquidity ratio declined by 1% in April(17.1%) as compared to March(18.1%).
Several trade associations, including NAFCU, and CUNA, are requesting the Consumer Financial Protection Bureau (CFPB) to extend the deadline for its Advance Notice of Proposed Rulemaking (ANPR) on credit card late fees collected by financial institutions by 60 days. The ANPR is the Bureau’s attempt to reduce the $12 billion in credit card late fees that banks generate each year. The CFPB has decided to reopen a regulation that was legislated by the Federal Reserve Board of Governors in 2010 with less controversy and has continued to function without significant alteration. The request is stated because the CFPB’s regulatory action on fees was not listed in its spring 2022 regulatory agenda, which was released before the ANPR was announced. The organizations argued that the 30-day comment period is insufficient for planning and executing the production of a considerable volume of data requested through the ANPR.
06/27/22 Pending Home Sales Rise For 1st Time in 6 Months (Mortgage News Daily)
As per data reports from the National Association of Realtors (NAR), Pending Home Sales reached their most recent peak in October 2021. The NAR’s Pending Home Sales Index decreased throughout the preceding six months, bottoming out at 99.2 in April. Even though the improvements were hardly perceptible, the index eventually increased for the month of May, outperforming the consensus prediction of a 3.7% decrease. Lawrence Yun, the chief economist for NAR, said that although the housing market is evolving, contract signings are still down from the previous year due to higher mortgage rates. Yun reproached high mortgage rates for the negative impact on consumers and the economy and suggested increasing supply to make a balance. Before the recent rate surge, experts already doubted the viability of the home market’s pricing and sales trajectory. However, normalization is already in progress, and the results will be seen in the upcoming months.
06/22/22 As inflation rises, credit unions remain the backbone for American consumers (CUInsight)
According to the Consumer Price Index report of May 2022, inflation has hit a record high since 1981. The Fed is also expected to increase the target rate by a further 175 basis points to 3.4 percent by the end of the year, according to the May Summary of Economic Projections. Americans around the nation inevitably feel uneasy due to higher petrol and grocery store prices while these economic changes take place. NAFCU is working with credit unions to keep members aware and ready for any changes in circumstances because it acknowledges these worries. As consumers turn to local financial institutions for direction and leadership, credit unions continue to be the most accessible and secure option for banking, especially as big banks’ presence continues to dwindle in underprivileged communities. Credit unions have a history of enduring severe storms alongside their members through challenging times. This is why NAFCU favors laws, such as the Expanding Financial Access for Underserved Communities Act, that would enable more credit unions to reach out to underserved communities, particularly those severely affected by bank branch closures.
06/15/22 PayPal expands its ‘pay later’ options with a more flexible ‘PayPal Pay Monthly’ service (TechCrunch)
Following Apple’s announcement to penetrate the buy now, pay later market, PayPal launched a new “PayPal Pay Monthly” service that allows customers to spread out payments for purchases over a six- to the 24-month period rather than having to pay off purchases over a six-week period as before. With the first instalment due after one month of the purchase, the “PayPal Pay Monthly” allows customers to make purchases between $199 and $10,000. PayPal has an increased dominance in the BNPL market, with 22 million PayPal customers using its pay later services over the previous year. Since the beginning of 2020, PayPal has processed more than $15 billion in BNPL Total Payment Volume globally. While some BNPL providers are introducing more conventional payment methods, digital wallets, like PayPal, have been expanding into instalment plans. PayPal claims that the new “Pay Monthly” option will be made accessible to businesses immediately at no extra cost or risk and won’t require complex integration to be added as a payment option. The PayPal Pay Monthly service will be available to all customers in the United States within the coming few weeks.
Multiple fintech companies raised concerns about the impact of deteriorating macroeconomics conditions at the Money 20/20 conference in Amsterdam. Co-founder and president of Stripe, John Collison, is doubtful if the company will be able to support its $95 billion valuation in the current scenario. The conflict in Ukraine has led to economic shocks (esp price shocks), which have caused a decline in both public and private markets. A market sell-off has hit the tech sector the most since the year’s beginning, and fintech companies were finding it difficult to raise capital due to growing inflation and interest rates. The main concern is that as customers become more conservative due to rising costs, fintech development will decrease and eventually coincide with the general economy. Due to the effects of COVID lockdowns on people’s purchasing behavior, investment in the fintech sector soared last year, hitting a record $132 billion globally. However, funding decreased 18% from the previous three months to $28.8 billion in the first quarter, according to statistics from CB Insights.
Apple plans to expand its fintech offerings with the release of the new iOS 16 this fall. At its developers’ conference, the company unveiled updated features for the Wallet app, including a buy now, pay later service competing directly with PayPal and Affirm. Apple’s new payments system lets you pay by tapping your iPhone against theirs. Additionally, one may trace online orders made with Apple Pay in iOS 16. The new functions are intended to increase Apple Pay usage and keep users confined to the iOS ecosystem. Apple’s rivals in the BNPL space have faltered as consumer spending turned from goods to services. However, Apple has a longer-term plan to replace everything in the physical wallet with a digital Wallet app.
06/07/22 The Fintech 50 2022 (Fintech Nexus News)
With financial lives continually shifting to online mode in 2021, cryptocurrency values skyrocketed, and a stream of talent and capital poured into the sector. As a result, a flood of exciting new companies emerged, with half of the 2022 Fintech 50 winners debuting on the Forbes yearly list. Two categories made a substantial showing–Crypto and blockchain enterprises and business-to-business neobanks, which seek to increase access to banking services for all types of small businesses. Undisputedly, the financial technology industry has faced more challenging times this year as customers ventured out (physically) to purchase, and worries about inflation, increasing interest rates, and Russia’s invasion of Ukraine grew. Crypto has crashed, publicly-traded fintech stocks have dropped by 50%, and the private markets have also slowed down. With fewer resources, fintech entrepreneurs will need to be resourceful and innovative.
06/03/22 All together now: Regulators tout benefits of CRA revamp (American Banker)
In contrast to former Comptroller Joseph Otting’s lone attempt to update the Community Reinvestment Act during the Trump administration, banking agencies jointly released their rewrite of the law. In the suggested rewrite, regulators specifically emphasized the importance of data-based evaluations and measures to strengthen low- and moderate-income areas’ climate preparedness. The new rule would make a distinction between low-income borrowers and moderate-income borrowers as well as between small firms and businesses, enabling more minority borrowers to access CRA funding.