A look into Yellen's rejection to Trump's deregulation plan and what the implications are in banking.
Yellen rejects Trump approach to Wall Street regulation, says post-crisis banking rules make economy safer
As the Trump administration looks to uphold their commitments to deregulate the banking system, Damian Paletta writes about the pushback their efforts have received. Paletta writes, "Federal Reserve Chairwoman Janet L. Yellen offered a forceful defense of broad new banking regulations enacted after the 2008 financial crisis, saying the rules safeguard the economy against another crisis and rejecting assertions from President Trump and top aides that they should be rolled back."
Big U.S. banks could see profit jump 20% with deregulation
American Banker and Bloomberg News show a perspective that differs from Yellen's, indicating that financial institutions could profit from the changes. American Banker writes, "The deregulation winds blowing through Washington could add $27 billion of gross profit at the six largest U.S. banks... JPMorgan Chase and Morgan Stanley would benefit most from changes to post-crisis banking rules proposed by Donald Trump's administration, with pretax profit jumping 22 percent, according to estimates by Bloomberg based on discussions with analysts and the banks' own disclosures. Goldman Sachs would have the smallest percentage increase, about 16 percent."
WeWork just raised another $4.4 billion from SoftBank
Business Insider's Avery Hartmans dives into on the extent of the partnership between SoftBank and WeWork, a company that leases space in commercial buildings to small or medium-sized companies. Hartmans writes, "SoftBank is investing $3 billion in WeWork itself, and putting another $1.4 billion into three new WeWork subsidiaries — WeWork China, WeWork Japan, and WeWork Pacific."
Mortgage technology provider Blend raised another $100 million led by Greylock
Ryan Lawler of TechCrunch reports on Blend's latest round of funding and the growth they've recently experienced as banks compete in the online mortgage business. Lawler writes, "Blend has been able to rapidly expand its customer base. In the last 18 months, the company has tripled the number of financial institutions that use its technology, and in 2017 alone Blend has seen more than $30 billion in mortgage applications."
Banks are more worried about Amazon and Facebook than actual fintech startups
As stated in the most recent World Economic Forum fintech report, "Fintechs have changed how financial services are structured, provisioned and consumed, but have not successfully established themselves as dominant players." Emma Hinchliffe of Mashable says that though scale has held back fintech as a potential competitors, it isn't the case with some of the tech giants. She writes, "Amazon and Facebook, on the other hand, do have the scale. Even if these tech giants aren't directly competing with banks most of the time, their sheer presence in consumers' everyday lives, the amount of data they collect about customers, and the reliance banks are forced to have on their business-side products will impact the future of the financial sector."
Beyond Fintech: A Pragmatic Assessment Of Disruptive Potential In Financial Services
As a part of the Future of Financial Services series, the World Economic Forum probes the potential for fintech's involvement in the evolution of financial services. In collaboration with prominent leaders in the industry, they share their key findings correlated with the success of a financial institution. Their report says, "The accelerating tempo of the innovation cycle in financial services means that a financial institution's success is predicated on business model agility and the ability to rapidly deploy partnerships, neither of which are traditional core competencies of these institutions."
New Digital Technologies Will Disrupt Banking Forever
With the vast amount of technology saturating our society (and with greater capabilities on the horizon), Jim Marous doesn't see banking ecosystems ever looking the same again. He writes, “The next wave of digital technologies include artificial intelligence (AI), blockchain, the internet of things (IoT), open banking APIs and robotic process automation (RPA). These will impact the banking ecosystem more than any previous transformation, potentially disrupting not only the way people bank, but the organizations that deliver financial services.”