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eWallets Don’t Make Money, Says Mandiri Capital Chief

PYMNTS

The CEO of PT Mandiri Capital Indonesia, the venture capital arm of PT Bank Mandiri, said the only way digital payment platforms can ever make money is by acting as a sort of portal into other services, otherwise it’s “just a cash-burning exercise,” according to reports. Nobody makes money from e-wallets,” Danusaputro said.

Capital 141
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Federal Reserve Releases 2021 CCAR Testing Scenarios

Perficient

In 2020, the Federal Reserve found that large banks were generally well-capitalized under a range of hypothetical events. The Fed’s Comprehensive Capital Analysis and Review (“CCAR”) stress tests are designed to ensure that large banks are able to lend to households and businesses even in a severe recession.

Exercises 309
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How to Set Your Strategic Planning Time Horizon

South State Correspondent

Banks consistently produce under their cost of capital. However, for the average bank, their cost of capital is between 9% and 14% depending on the bank’s equity liquidity with an average of 12.5%. As an industry, we misallocate capital. However, if you want to build a legacy institution, then your capital should be longer.

How To 195
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Solve This Problem with Your Strategic Horizon

South State Correspondent

Strategic Horizon and Capital As mentioned, the problem that bank’s often run into when it comes to strategic planning is their time horizon is too short. The fundamental problem is a bank’s implied average life of capital is long, some 18+ years, but their strategic horizon is too short – likely under three years.

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Mint Payments Completes $6M Placement For Southeast Asia Expansion

PYMNTS

10) announced it completed a placement of new shares, which it is using to expand in South East Asia ’s payments market. The report noted the capital raising will be undertaken in two tranches, with tranche 1 comprised of 50.6 million, enabling it to be well-positioned to capitalize on new opportunities over the medium term.

Exercises 120
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FTC files lawsuit against fuel card marketer

CFPB Monitor

The FTC has filed a lawsuit in an Atlanta federal district court against a company that markets fuel cards to operators of vehicle fleets in which the FTC alleges that the company violated the FTC Act’s prohibitions on unfair and deceptive acts and practices. AMG Capital Mgmt., in which a Ninth Circuit panel affirmed a $1.27

Cards 78
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Commercial Credit Trends – Where to Tread Carefully

South State Correspondent

This data is critical for pricing, capital allocation, and marketing. The operative question is when commercial PODs will show a spike. AL ranks in the middle for overall risk, so they are not called out below, but because of the volatility, banks should monitor and exercise caution.

Trends 195