The banking news last week potentially shifted the recent narrative on peer to peer lending.
Online loans leave consumers deeper in debt, Fed says
American Banker's Kevin Wack shows the latest data from the Federal Reserve Bank of Cleveland on peer-to-peer (P2P) lending, and it doesn't look good for consumers. He writes, "the study finds that borrowers who use online loan products end up in deeper debt than similarly situated consumers who do not." These findings may change the narrative that P2P lending is a net positive for American consumers.
Bank CEOs Can't Agree on How Scared They Should Be of Amazon
Bloomberg's Jennifer Surane and Laura Keller write about the more than $3 billion in loans to merchants that Amazon has sold since offering small business loans. Some bank CEOs think that number is small enough that there's nothing to worry about. Others think that the number could grow very quickly and eat into their bottom line.
The Ten-year Ticking Timebomb
Chris Skinner says that financial institutions with old mainframe systems won't survive the next 10 years. He writes, "In 2027, where the fintechs and internet giants are analysing trillions of transactions per second in real-time with artificial intelligence, how would the banks’ core system working in batch overnight updates manage? It wouldn’t." Because of this, Skinner advises financial institutions to prioritize mainframe updates.
Financial Institutions Must Help Millennials With Their Money Woes
US regulator calls for rethink on separation of banking and commerce
"Acting Comptroller of the Currency Keith Noreika used a speech on Wednesday to question whether the centuries-old practice of keeping banking separate from other commercial activity is still in the best interests of the banking system and the wider economy. ... A change to the rules could lead to some [tech] giants making a full banking play."
How a phishing scam tripped up a Va. bank
American Banker's John Reosti shows just how easy it can be for internal employees to fall for phishing attacks. He writes about one such attack at Southern National Bancorp of Virginia: "The scam gave outsiders access to personal information tied to an undisclosed number of customers. It led also to about $172,000 in fraudulent wire transactions."
Fintech startup Flux partners with Barclays for itemised receipts
TechCrunch's Steve O'Hear writes about the latest Barclays partnership. With Flux, Barclays customers will be able to see an itemised spending breakdown on their digital banking platforms — so long as the customer purchases items at one of Flux's partner merchants. Barclays is currently doing a test-run and will expand the partnership with Flux based on the results they see.