In this week’s PeerIQ Industry Update they cover the recent news that CEOs of the six largest banks will testify...
Digital only banking startups are finding it hard to scale as their offerings are similar to incumbent banks but with some better tech; with the amount of companies starting to increase these banks should think of focusing on a particular niche to get greater traction says Satya Patel, a partner at VC firm Homebrew; customer acquisition costs and a viable revenue model are two of the biggest barriers for companies; online lenders like SoFi have started to offer banking services on top of lending as a means to offer customers more products after providing an initial service. Source.
Cagney was previously the CEO of SoFi; his new venture focuses on home equity loans using blockchain to make the...
Last year we saw continued interest in a broad array of fintech companies. Recently the fintech space has become more...
SoFi is partnering with WSFS financial to roll out free checking account and debit cards this spring; it is calling the new initiative “SoFi Money”; the product will include peer to peer transfers, mobile check deposits and high yield interest rates on deposits; SoFi members will be the first to have access to SoFi Money before a broader rollout. Source
The worst week in SoFi‘s history is coming to an end. The company announced today that Mike Cagney has stepped...
According to Recode, Mike Cagney is back with a new startup and is pitching to investors such as Peter Thiel and others who backed SoFi; he is reportedly looking to raise around $25 million for the new company which may focus on HELOCs. Source
Well this morning started out as a bit of a bummer! See -- Charles Schwab to buy TD Ameritrade in a $26 billion all-stock deal. The $55 billion market cap Schwab is gobbling up the $22 billion TD Ameritrade at a slight premium. Matt Levine of Bloomberg has a great, cynical take on the question: Schwab lowering its trading commissions to zero is actually what wiped out $4 billion off TD's marketcap a few months ago. For Schwab, the revenue loss from trading was 7% of total, while for TD it was over 20%. Once Schwab dropped prices, TD started trading at a discount and became an acquisition target. You can see the share price drops reflected below in the beginning of October.
In an interview on CNBC last week Goldman Sachs CEO Lloyd Blankfein shared some news about their consumer lending platform....
Deposit accounts and debit cards will be available to some customers next month according to SoFi; the account will function like a checking account that will earn interest; the company recently shared that they were working with WSFS Financial Corp for the new product called SoFi Money. Source