Fintech from 2008 to 2024

Daily Fintech

In this case I am starting by looking back on the history of Fintech from 2008 to 2020 and then looking forward to next year and the distant future of 2024. The post Fintech from 2008 to 2024 appeared first on Daily Fintech. 2020 is nearly over; it is time to celebrate and look forward.

How a fintech born from the 2008 recession is navigating the pandemic

Payments Source

Bill Clerico created WePay during the last financial crisis, and sees a similar opportunity now. The coronavirus pandemic is affecting different markets in vastly different ways, and easing the flow of capital is just one way to provide help.

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US Consumer Price Index Drops To 2008 Level In April

PYMNTS

It’s the largest monthly decline since December 2008. The Consumer Price Index (CPI) fell to its lowest level in a dozen years last month, according to the U.S. Bureau of Labor Statistics (BLS). The CPI, a measure of the change in the prices of goods and services, dropped 0.8 percent in April on a seasonally adjusted basis. At nearly 21 percent, the decline in the gasoline prices was the largest contributor to the monthly decrease.

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Coronavirus Is ‘Cross Between 9/11, 2008 Financial Crisis,’ Officials Say

PYMNTS

Banking officials are in a panic over the coronavirus as it upturns their revenues, with PJT Partners restructuring specialist Tim Coleman describing the viral pandemic as “like a cross between September 11 and the global financial crisis of 2008.”.

2008 Banking redux

The Bankwatch

This is directly reminiscent of 2008 when a French Real Estate Fund froze redemptions. Liquidity is a given in markets, and Sept 2008 looms large. The world economy came to a stop on Sept 15th 2008 when no bank would transact with another bank for bank to bank liquidity transactions. This paragraph within an FT article tonight caught my attention.

2008 Banking redux

The Bankwatch

This is directly reminiscent of 2008 when a French Real Estate Fund froze redemptions. Liquidity is a given in markets, and Sept 2008 looms large. The world economy came to a stop on Sept 15th 2008 when no bank would transact with another bank for bank to bank liquidity transactions. This paragraph within an FT article tonight caught my attention. On Tuesday, the pound shed 2 per cent after a handful of large UK commercial property funds. froze redemptions.

Americans Are Borrowing Like It’s 2008 … Sort Of

PYMNTS

trillion peak it reached in the fall of 2008 — the same time that the Great Recession was earning its place in the history books. trillion at the end of the first quarter of 2017, up $473 billion from a year ago and $50 billion above the previous 2008 record. The decline in debt between 2008 and 2013 was an aberration from what had been a 63-year upward trend reflecting the depth, duration and aftermath of the Great Recession.

Do you remember where you were on 15 September 2008?

Daily Fintech

Do you remember where you were on 15 September 2008? I do remember where I was on 15 September 2008. I was there, so here are my personal stories of the days around the Lehman Brothers collapse on 15 September 2008: Story 1: Don’t push me I am close to the edge. If heart attack is the best analogy here is what happened on 15 September 2008: The EMT team applied defibillators and the patient’s heart started again.

Mortgage lenders tighten screws on credit in echo of 2008

American Banker

Mortgage rates are at record lows, but borrowers hoping to take advantage are running into the toughest loan-approval standards in years. Mortgage rates Refinance Originations Underwriting

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Fraud & COVID-19: Lessons Learned from the 2008 Recession

Fico Collections

When it comes to fraud and COVID-19, the Great Recession of 2008 provides some important lessons that can help banks and consumers protect themselves against the increased risk. Here’s what different about fraud during COVID than 2008.

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Wells Fargo posts first quarterly loss since 2008

American Banker

The firm set aside a record $9.5 billion for credit losses, about $4 billion more than analysts had expected, as it braces for a wave of coronavirus-related defaults. Wells Fargo Earnings Coronavirus Charles Scharf Loan-loss provisions

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American Retail Stores Closing At Faster Pace Than During 2008 Recession

PYMNTS

Credit Suisse Group AG analyst Christian Buss reports that year-to-date store closings are already outpacing those of 2008, when the country was at the peak of a recession. It’s estimated that there could be 8,640 store closings in 2017, higher than the 2008 peak of about 6,200. As more consumers are turning to online marketplaces like Amazon to get their shopping done, American retailers are closing their doors at a record pace.

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Today In Data: US Retail Store Closures Outpacing 2008 Recession Rates

PYMNTS

The 2008 recession may have had a stronger impact on the retail world than once previously thought. 6,200 | Peek number of store closings in 2008. When this turbulent time for retailers hit, the world was in the midst of an expanding eCommerce growth period. As such, more brick-and-mortar stores are projected to close this year than during the economic downturn from nine years ago. Here are the numbers: 2,880 | Number of store closings so far in 2017.

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UK productivity growth from 2008 to 2018: weakness was structural, not cyclical

BankUnderground

The black line in Chart 1 shows that labour productivity – defined as output per hour worked – has stagnated since around 2008. Marko Melolinna. Monetary policy makers need to know whether the economy is operating above or below its supply capacity. If the economy is operating above its supply capacity, inflation is likely to rise, and vice versa. A crucial component of supply capacity is the labour productivity trend but we cannot observe this directly. We have to estimate it.

Sequoia Capital Foresees Doom For Entrepreneurs As Coronavirus Takes Toll

PYMNTS

The financial crash of 2008 was predicted similarly by Sequoia, which sent an ominous email simply titled “RIP Good Times” during the depths of that recession. Investments 2008 recession Airbnb china Coronavirus economy investors News Sequoia Capital U.S Venture capital firm Sequoia Capital warned in an email to entrepreneurs on Thursday that the coronavirus could potentially be the herald of a “prolonged” global economic slow-down.

Jamie Dimon sees ‘bad recession’ and echoes of 2008 crisis ahead

American Banker

The only current CEO who steered a major U.S. bank through the financial crisis, Dimon said JPMorgan’s earnings will be “down meaningfully” this year as a result of the coronavirus pandemic. Financial regulations Jamie Dimon Economy Coronavirus JPMorgan Chase Consumer banking Commercial banking

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Banks must treat debt-laden firms fairly to avoid replay of 2008, says FCA chair

TheGuardian

‘Inescapable’ that some firms will accumulate unaffordable debt, says Charles Randall The head of the City watchdog has told banks to prepare for a surge in business customers falling behind on their debts, but warned firms must be treated fairly to avoid a “replay” of 2008 when trust in lenders collapsed.

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Barclays: Qataris spoke to Gordon Brown to 'defuse 2008 bailout pressure'

TheGuardian

Court hears Qatari leader spoke to then PM as bank pressurised to accept government money A Qatari leader spoke to then prime minister Gordon Brown during the 2008 financial crisis as Barclays came under increasing pressure to accept government money, a former bank boss has told a high court judge. Former Barclays chief executive John Varley told Mr Justice Waksman how Qatari prime minister Sheikh Hamad spoke to Brown in October 2008 to “defuse” that pressure.

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How Amanda Staveley took on Barclays over its 2008 Qatar rescue

TheGuardian

The £1.5bn case of the high-flying businesswoman began its high court hearing this week It is June 2008 and the start of the financial crisis. Everyone in the City of London is firefighting, but two bankers are wrestling with an especially thorny problem. They are within touching distance of saving their bank from oblivion, yet a single sticking point remains: how do they accept the rescue deal on offer from the Gulf state of Qatar, while simultaneously keeping themselves out of prison?

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Amex Cuts CEO's Pay 26% to Lowest Since 2008 After Stock Slides

Payments Source

cut Chief Executive Officer Kenneth Chenault's pay 26 percent to the lowest level since 2008 after the credit-card lender's stock and profit slumped last year. American Express Co. credit news risk-analytics

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As in 2008, this crisis will bring winners and losers. This time, let's get it right | Carys Roberts

TheGuardian

In 2008 progressives failed to anticipate and define a compelling story about the financial crisis. But a clear diagnosis of the nature of this crisis, the longstanding weaknesses it has exposed, and a progressive story of how we might recover from it, are as vital now as they were in 2008. Progressives missed an opportunity after the last crash.

Remebering 2008 and how little things have changed; World Economic Forum 2015

The Bankwatch

Wolf speaks of three key risks within the financial system which intestingly are precisely those same risks from 2008. Rather than repeat all those arguments, here is the story of Wachovia and the speed with which it disappeared in hours and days back in 2008. Equity base $72 billion Form 10K Feb 2008.

How 2008 Lending Shutdown May Explain Today's Growth

American Banker

While troubling factors such as higher risk profiles may be behind the recent lending boom, the industry could also just be returning to the historical average for loan growth following the "Great Panic" of 2008-2010. consumer-finance earnings-community-banks commercial-lending cre performance mortgage community-banking

Revenge Of The Roaches: 17 Startups Hatched In The Crisis Of 2008 And 2009 That Are Now Unicorns

CB Insights

In a seminal article titled “The Age of the Cockroach,” Caterina Fake argues that startups, much like cockroaches, can survive a downturn by focusing on the unglamorous essentials. “Companies that want to outlast the coming funding crisis will need to … Continued. Funding & Dealflow Valuations

Today marks ten years since Lehmans collapsed and the GFC started

Chris Skinner

It’s exactly ten years since I landed in Vienna for Sibos 2008 on Sunday, September 14 2008, to find voicemail after voicemail asking for commentary … The post Today marks ten years since Lehmans collapsed and the GFC started appeared first on Chris Skinner's blog. It’s September 14. It’s exactly ten years since Lehman Brothers collapsed. It’s ten years since the touchpaper was lit that sparked the Global Financial Crisis (GFC).

The world’s most destructive bank?

Chris Skinner

That was before September 2008. I feel sorry for Deutsche Bank. I’ve worked with the bank and they have some great people. It used to be that their investment banking services were one of the best in Europe, alongside UBS and Barclays Bank. Since then, it’s been like an old … The post The world’s most destructive bank? appeared first on Chris Skinner's blog. Grid Opinion

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Digital banks, payments startups face first major test in virus

Bank Innovation

mobile payments companies founded after the 2008 financial crisis, and digital banks including Chime Inc. Fintech startups looking to upend how Americans do their banking are facing their first major test as interest rates fall and fearful consumers seek safety at traditional banks. Square Inc. and Stripe Inc., and MoneyLion have never experienced a major […].

Things worth reading: 17th June 2020

Chris Skinner

Things we’re reading today include … Banks ‘could share branches’ in bid to rescue access to cash Visa hails ‘permanent’ shift in consumer spending habits Banks must treat debt-laden firms fairly to avoid replay of 2008, says FCA chair New trials planned for cash-stricken communities UK Finance boss resigns as … The post Things worth reading: 17th June 2020 appeared first on Chris Skinner's blog.

Things worth reading: 3rd July 2020

Chris Skinner

Barclays: Qataris spoke to Gordon Brown to ‘defuse 2008 bailout pressure’ Trade finance stumbles into the digital era Hong Kong: HSBC … The post Things worth reading: 3rd July 2020 appeared first on Chris Skinner's blog. Things we’re reading today include … Wirecard North America sale draws interest from payments groups Why zero interest rates might lead to currency volatility How resilient are the banks?

How Lehmans collapse started the FinTech fire

Chris Skinner

It’s interesting that the Global Financial Crisis (GFC) sparked by Lehman Brothers collapse in September 2008 sparked the FinTech revolution, according to some. I personally think FinTech was bubbling away before the GFC but, certainly, the GFC led to massive investment focus upon changing the system (almost $100 billion since … The post How Lehmans collapse started the FinTech fire appeared first on Chris Skinner's blog. Fintech Grid Opinion

How a great digital experience can be grown from traditional roots

BankInovation

After the 2008 financial crisis, that’s exactly what happened. It’s probably a bit of a stretch to say people need banks as much as they do water. But you probably haven’t gone a whole day without your bank for a while.

The difference during this crisis? Customers trust their banks.

American Banker

Unlike in 2008, banks have become a steady force during the coronavirus pandemic. Fintech Crisis management TARP Community banking Coronavirus Community banks

Former FDIC head Sheila Bair to chair Fannie Mae board

American Banker

One of the top banking regulators during the 2008 financial crisis could have a hand in nudging Fannie Mae out of conservatorship. FDIC Mortgages Corporate governance FHFA Fannie Mae GSEs Freddie Mac

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Is the CFPB Ruling Important for the Future of Fintechs?

Bank Innovation

Recently a federal appeals court decided that the Consumer Finance Protection Bureau—a federal organization designed to safeguard against some of the pitfalls that led to the 2008 crisis—had been operating unconstitutionally, something which is certainly a blow to the agency itself and will no doubt have ramifications for how it Read More.

BAS 2020: Wealthfront eyes faster money movement, integrations for Autopilot

BankInovation

Founded in 2008, Wealthfront has 400,000 customers and […]. Wealthfront is refreshing its Autopilot product, as the digital fintech looks towards faster funding and a larger catalog of destinations. The Palo Alto, Calif.-based