The Independent Community Bankers of America have expressed concern about Square’s plans for a bank charter; they believe it would set a precedent for other tech companies like Amazon; According to Jacqueline Reses, Amazon and Facebook haven’t expressed interest in a banking license and they would have to be evaluated on their own merits; Square also recently met with the National Community Reinvestment Coalition to address concerns with the Community Reinvestment Act. Source
Two reports share that the federal government may not profit or break even on their $1.4 trillion student loan portfolio; there has been an increase in borrowing in recent years and some graduate students are opting for income-driven repayment plans; these students are expected to pay back less than they took to pay for tuition; there are concerns that the interest payments of those paying the full amount on their loans may not be enough to offset those that are entering these plans. Source
The Financial Times reviews company and loan performance at various online lenders; shares that Shanda Group bought more shares of LendingClub after forecasts were adjusted last week; LendingClub also recently stopped making F & G grade loans available to investors; broadly, delinquency rates have increased across online lenders; valuations of other companies such as Earnest and Prosper have also been affected. Source
There has finally been movement on the ability to access IRS data which will have some significant impact on the...
Cleaver stated, “If we fail to act on fintech, we are setting ourselves up for problems down the road. Not because the fintech folks are evil…but because we are behind the curve.”; Cleaver also discussed the importance of understanding what is going on in fintech so the proper safeguards can be put in place; he proposed that fintech companies should speak before the Financial Services Committee and that more meetings should be held. Source
CoinDesk reports that the Ethereum incubator has cut over 90 staff, or about 14% of the company; the news follows...
Event follows Ethereal Summit hosted by ConsenSys earlier this year; will include panels, live music, discussions and workshops about blockchain; the event will focus on making blockchain technology easier to understand and is being marketed as a culture focused event rather than a technical one; Cointelegraph provides a list of featured speakers. Source
In the pre-crisis construction boom, circa the first quarter of 2008, banks held $631 billion in construction loans; in the...
As banks look to update legacy technology or partner with fintechs they have turned to consultants for advice; consulting firms like BCG, Accenture and the big four accounting firms, KPMG, PwC, Deloitte and EY have all been called upon to help structure deals or provide banks with advice on regulatory updates; financial institutions are relying on these consultants to help banks implement the technology changes and to adapt quicker as they can help bring knowledge from data scientists or app designers. Source.
In this week’s PeerIQ Industry Update they cover the recent remarks by Fed Chairman Powell who says the recovery will...