Coinbase built the platform, Coinbase Custody, to serve investors like hedge funds and family offices; "We are designing Coinbase Custody to meet the needs of institutional clients," Armstrong said in a Medium post as reported by Business Insider; the features include account representatives and support, multi-user accounts and insurance in some cases. Source.
JoinedNov. 30, 2016
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Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.
Spanish banks have been focusing on going digital to help keep ahead of competition; banks like Santander and BBVA have improved their mobile app access and started innovation teams to invest or partner with fintech companies; they have also changed their culture to better resemble a startup and have started talent competitions; while the banks have had their share of issues the digital focus can help to drive down costs and keep the banks ahead of the curve. Source.
The first head of the CFPB has decided to step down at the end of the month without giving a formal reason; the bureau was established in the wake of the financial crisis in 2011; Mr. Cordray sent an email to all CFPB staff saying he thought the agency made a lasting difference to improve people’s lives and that new leadership will preserve what they have done; he is rumored to be interested in running for Governor of Ohio in 2018. Source.
The Office of the Comptroller of the Currency (OCC) has shifted back to a softer stance since the Trump administration took office; according to the New York Times the agency is using directives from the interim head to ease back regulations enacted during the Obama administration; the move is part of a wider push to set back financial regulations that some say have hurt banks in recent years. Source.
A recent report by the Cleveland Fed on online lending has caused quite the controversy over its content; the Marketplace Lending Association said the Fed should retract the report; even TransUnion, whose data the report relied upon, took issue with how they presented the material; “We have no understanding of how the Federal Reserve Bank of Cleveland could have used our data to reach the conclusions they did,” Ezra Becker, SVP at TransUnion, said to American Banker; the Fed stated the terminology used in the report has caused confusion but have yet to retract the report. Source.
In looking for a new CFO the company posted an ad stating that the new officer would help to lead the company through an IPO in 3 to 4 years; Monzo has recently raised capital and talked about global expansion into Asia and the US; the UK based digital bank has also stated they are launching new products in 2018. Source.
Square has started to allow some of its Cash mobile app users to buy and sell the cryptocurrency through the app; a Square spokesperson said, “We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash app customers,” as reported by Crowdfund Insider. Source.
Goldman CFO Marty Chavez said the bank surpassed $2bn in originations, a mark they were looking to reach by year’s end; the portfolio has an average APR of 12 percent, loans have an average length of four years and the typical amount if for $15,000 as reported by Business Insider; the company estimates they will reach $13bn in lending after three years in operation. Source.
A new report by the Federal Reserve Bank of New York shows that subprime auto loans from nonbank lenders have higher delinquency rates than banks; about 4.4 percent of subprime loans from banks are delinquent while 9.7 percent from nonbank lenders are delinquent; “This suggests that bank auto loans may have some additional layers of underwriting — credit score alone does not explain the gap and divergence in the delinquency rates,” the New York Fed report stated as reported by American Banker. Source.
Chinese online consumer lender, LexinFintech, filed a $500mn IPO to list on the Nasdaq; LexinFintech provides installment loans for consumers to buy products; regulators have been looking closer at consumer lending in China with recent companies listing on US exchanges; the listing is being underwritten by Goldman Sachs, BofA Merrill Lynch, Deutsche Bank Securities and China Renaissance. Source.