Banks retool customer service in the scramble for PPP loans 

https://bankinnovation.net/allposts/biz-lines/lending/banks-retool-customer-service-in-the-scramble-for-ppp-loans/

Banks are feeling the pressure of small businesses nationwide applying for Paycheck Protection Program loans. With the launch of the Small Business Administration’s program Friday, bankers are engineering the best ways to handle the customer service inquiries flooding banks’ digital channels.    “We dove headfirst into this,” said Becky Buhr, vice president of finance and retail …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/lending/banks-retool-customer-service-in-the-scramble-for-ppp-loans/

Will COVID-19 burst fintech’s funding bubble? 

https://bankinnovation.net/editorial/premium/will-covid-19-burst-fintechs-funding-bubble/

Fintechs will likely have a tough time securing funding as the coronavirus pandemic continues to shake up the U.S. economy, prompting investors to tighten purse strings. Fintech funding has been on a downward trajectory for several months, but startups and others in the sector should brace for an even rockier quarter as coronavirus delivers its blows in both the short and long term, according to industry analysts. …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/editorial/premium/will-covid-19-burst-fintechs-funding-bubble/

SBA loan platforms could be fintech’s ‘big moment’  

https://bankinnovation.net/allposts/biz-lines/lending/sba-loan-platforms-could-be-fintechs-big-moment/

A handful of fintech providers are bringing SBA Paycheck Protection Program loan platforms to market, a move that could be the industry’s moment to shine. “The real opportunity here is going to be the administration of loans,” said CB Insights senior research analyst Arieh Levi. “If the fintech players can prove that they’re better at …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/lending/sba-loan-platforms-could-be-fintechs-big-moment/

Better.com profits from hospitality layoffs and interest rates 

https://bankinnovation.net/allposts/biz-lines/lending/better-com-profits-from-hospitality-layoffs-and-interest-rates/

Laid-off hospitality workers can start new careers as loan officers with Better.com. The digital mortgage lender plans to hire 1,000 new employees this year and is targeting hospitality workers who have lost their jobs due to the COVID-19 crisis.   To Better.com, hospitality workers will make good loan officers because they are calm under pressure and …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/lending/better-com-profits-from-hospitality-layoffs-and-interest-rates/

SoFi acquires Galileo for $1.2B to broaden reach 

https://bankinnovation.net/allposts/biz-lines/payments/sofi-acquires-galileo-for-1-2b-to-broaden-reach/

In a year of major fintech acquisitions, SoFi today announced a $1.2 billion deal to acquire Galileo, a financial services API and payments platform that powers big names like Chime and Robinhood.  “Together with Galileo, we will partner to build on our companies’ strengths to drive even greater financial technology innovation, making those products and …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/payments/sofi-acquires-galileo-for-1-2b-to-broaden-reach/

VC firms, startups face headwinds with SBA loans 

https://bankinnovation.net/allposts/biz-lines/lending/vc-firms-startups-face-headwinds-with-sba-loans/

As small businesses race to apply for Paycheck Protection Program loans from the Small Business Administration, many venture capital firms and startups are figuring out how they can participate, if at all.  “We have companies that would fall into the category of benefiting from the [SBA] program,” said Karim Gillani, general partner at the Luge …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/lending/vc-firms-startups-face-headwinds-with-sba-loans/

Wells Fargo says Fed cap is limiting small-business relief

https://bankinnovation.net/allposts/biz-lines/lending/wells-fargo-says-fed-cap-is-limiting-small-business-relief/

Wells Fargo & Co. said it can’t fully meet demand from small businesses rushing to participate in a U.S. relief program because of constraints imposed by the Federal Reserve on the bank’s growth.

The company has capacity to lend $10 billion to small-business clients under the $349 billion U.S. program, but customers already have expressed more interest than that, Wells Fargo said in a statement late Sunday. The firm will therefore focus on helping nonprofits and businesses with fewer than 50 employees.

“While we are actively working to create balance-sheet capacity to lend, we are limited in our ongoing ability to use our strong capital and liquidity position to extend additional credit,” Chief Executive Officer Charlie Scharf said in the statement. “We are committed to helping our customers during these unprecedented and challenging times, but are restricted in our ability to serve as many customers as we would like.”

The situation may ratchet up pressure on the Fed to ease the unprecedented asset cap it imposed on the nation’s fourth-largest bank in 2018 in response to mounting scandals at the company. As the coronavirus pandemic began, the firm — a leading lender to small and midsize U.S. companies, homebuyers and commercial-property investors — had about $384 billion of additional lending capacity that it can’t unleash because of the cap.

Read more: Wells Fargo has $384 billion of lending power stymied by Fed cap

As markets swooned and commerce slowed this year, Wells Fargo’s representatives privately broached the idea of at least temporarily lifting the restriction so it could help more customers. The Fed has yet to publicly disclose a decision.

People with knowledge of the situation told Bloomberg in late March that the regulator was reluctant to ease or lift the cap because the bank has yet to fully address concerns that prompted the sanction. Scharf, who took over in October, has made progress in enacting reforms, but the company must still prove it’s done enough to prevent abuses of customers, the people said.

Friday was the first day that American small businesses hit by the fallout from the coronavirus pandemic could start applying for loans under the new U.S. program. It was part of the $2 trillion stimulus package Congress passed last month aimed at shoring up the economy.

Scharf noted in the statement that Wells Fargo already extended almost $70 billion in new and increased commitments and outstanding loans to consumers, small businesses and corporations in the U.S. last month. The firm also said it plans to donate the fees it generates from the small-business stimulus program.

Steve Troutner, Wells Fargo’s head of small business, instructed employees to suggest customers apply elsewhere to increase their chances of getting a loan before the stimulus money runs out, according to a memo seen by Bloomberg.

“We are hopeful that despite the restrictions of Wells Fargo’s asset cap, our customers will be able to get the help they need, either from us or through other lenders as we all navigate together through this time,” Troutner said in the memo.

(Updates with details, contents of internal memo beginning in eighth paragraph.)

https://bankinnovation.net/allposts/biz-lines/lending/wells-fargo-says-fed-cap-is-limiting-small-business-relief/

Banking app Dave ‘on the hunt’ for remote work opportunities

https://bankinnovation.net/allposts/biz-lines/retail/banking-app-dave-on-the-hunt-for-remote-work-opportunities/

Banking platform Dave is increasing its integrations with remote work employers as the coronavirus pandemic keeps consumers home, resulting in a hard-hit gig economy and freelance workforce. In a recent survey of more than 7,000 Dave users, 21% said they expected their pay to be cut in half and 18% said their pay would be …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/retail/banking-app-dave-on-the-hunt-for-remote-work-opportunities/

Chase virtual sessions up 5x since COVID-19 outbreak 

https://bankinnovation.net/allposts/biz-lines/lending/chase-virtual-sessions-up-5x-since-covid-19-outbreak/

 JPMorgan Chase has executed almost 150,000 concurrent virtual sessions in the past few weeks which, according to CEO Jamie Dimon, is nearly five times the usual number of such sessions as before the COVID-19 crisis.  “We are ensuring [employees] continue to operate at the highest standards with the proper technological tools and access so they …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/lending/chase-virtual-sessions-up-5x-since-covid-19-outbreak/

Fintechs launch SBA PPP platforms amid stimulus scramble

https://bankinnovation.net/allposts/biz-lines/corp-bank/fintechs-launch-sba-ppp-platforms-amid-stimulus-scramble/

As banks scramble to stand up digital interfaces and participate in the SBA Paycheck Protection Program (PPP) that launched today, fintech providers are rolling out different technology platforms to help lenders process the flood of small business loan applications. The Payroll Protection Program, a major component of the “Coronavirus Aid, Relief, and Economic Security” Act, authorizes lenders to provide up to $349 billion in funds to …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/corp-bank/fintechs-launch-sba-ppp-platforms-amid-stimulus-scramble/

Fintechs, lacking guidance, pivot to SBA loans 

https://bankinnovation.net/allposts/biz-lines/lending/fintechs-lacking-guidance-pivot-to-sba-loans/

U.S. Treasury Secretary Steve Mnuchin last weekend confirmed “any fintech lender” will be authorized to make small business loans as part of the Coronavirus Aid, Relieve and Economic Security (CARES) Act. Despite the goal to have the program up and running by today, digital lenders remain uncertain how it will work and how much it …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/lending/fintechs-lacking-guidance-pivot-to-sba-loans/

Weekly Wrap: PPP ramp up dominates the credit industry

https://bankinnovation.net/allposts/operations/comp-reg/weekly-wrap-ppp-ramp-up-dominates-the-credit-industry/

A pedestrian wearing a protective mask walks along a street in Milwaukee, Wisconsin, U.S., on Thursday, April 2, 2020. A federal judge refused to postpone Wisconsin’s presidential primary on Tuesday, but extended the deadline for absentee voting by a week. Photographer: Thomas Werner/Bloomberg

The Small Business Administration’s Paycheck Protection Program went live today, and confusion reigned. Despite shelter-in-place mandates for better than 80% of Americans, some banks urged prospective borrowers to come into branches to fill out an application. And although digital applications are sometimes accepted, many FIs are still relying on manual processes and procedures to inbound …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/operations/comp-reg/weekly-wrap-ppp-ramp-up-dominates-the-credit-industry/

Stripe partners with CRM provider to aid SMB

https://bankinnovation.net/allposts/biz-lines/payments/stripe-partners-with-crm-provider-to-aid-smb/

Payments infrastructure giant Stripe has integrated with Keap, a customer relations management platform designed for small businesses, in a partnership that will likely prop up cash flow for one of the industries hit hardest by the coronavirus pandemic, according to Rajesh Bhatia, Keap’s chief technology officer. “Manual processes slow business down and we know cash …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/payments/stripe-partners-with-crm-provider-to-aid-smb/

Plaid pulls Excel into fintech services 

https://bankinnovation.net/allposts/biz-lines/wealth/plaid-pulls-excel-into-fintech-services/

Microsoft Excel’s budgeting features received a major overhaul this week to become a full-service personal finance management tool through data aggregator Plaid, which connects banks with third parties to deliver financial information on behalf of consumers. The new service is called “Money in Excel.”  “We believe every company will become a fintech company in some …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/wealth/plaid-pulls-excel-into-fintech-services/

Startups are scrambling for access to $349 billion in relief loans

https://bankinnovation.net/allposts/biz-lines/lending/startups-are-scrambling-for-access-to-349-billion-in-relief-loans/

Representatives for venture-backed startups are pushing for the companies to get access to $349 billion in small business loans authorized by Congress as part of its economic relief plan for Covid-19. So far it appears that many such businesses won’t qualify.

On Tuesday, the Treasury Department and the Small Business Administration provided new details about which businesses could get the funding, aimed at companies with 500 or fewer employees. While many young tech companies are small enough, provisions on disclosures and investor ownership may prevent traditionally structured startups from being eligible for the loans.

Not adjusting these rules could lead to more economic pain, and not just for startups, according to Justin Field, senior vice president of government affairs for the National Venture Capital Association, or NVCA. “I think you’re looking at several hundreds of thousands jobs lost across the country and many more in businesses who rely on these workers as customers,” he said. “I think you’re going to have a huge sweep of layoffs in several weeks if they can’t get this figured out.”

The proposed rules would put heavy requirements on minority shareholders with more than a 20% stake in the business. They’d require venture investors to risk being held criminally liable if a startup misuses money it receives as part of the program, Field said. There are also other complicated disclosure requirements that could make qualifying for the money difficult for most startups, according to Field. The Treasury Department and the Small Business Administration did not respond to requests for comment.

Startups have been shedding thousands of employees as state-level stay-at-home orders shut down whole sectors of the economy. Struggling companies could benefit from the loans, which turn into grants if they’re used to pay employees—often startups’ biggest expense.

Industry groups for tech and venture capital have been pressuring officials to state explicitly that startups would be eligible for the loans under the existing rules, or to issue new guidelines. Given the urgency of the need, advocates for startups would would like to see the administration waive rules about minority investors. Private equity firms are similarly lobbying the government to allow their companies to qualify for the funds. So far those efforts have been unsuccessful.

Startup advocates argue that venture capital firms’ investments are often too complicated to meet the disclosure requirements and that minority shareholders don’t typically have sufficient control over the companies that they invest in. “Our guys want the money to go to payroll, the government certainly wants the money to go to payroll here,” said Field of the NVCA.

Some people in the tech industry have framed the changes they’d like to see as technical fixes. On Monday, venture capitalist Fred Wilson wrote on his blog, “It is my hope that this ‘bug’ in the law will get fixed over the next week or so.”

But there are plenty of reasons that startups would be treated differently than other small businesses. Unlike restaurants or hair salons, there is an ecosystem of deep-pocketed  investors dedicated to funding them. Also unlike most small companies, venture-backed startups are built on the idea of striking it big or flaming out trying. There is no shortage of businesses in need, and officials may prefer to focus elsewhere.

Groups representing startups are vociferously arguing to that they are subject to the same virus-related headwinds as non-tech companies, and provide important benefits to the economy. “Similarly to other small businesses in New York, many New York founded startups are experiencing financial hardship,” wrote Julie Samuels, executive director of Tech:NYC, an industry group, in a letter to the Small Business Administration on March 27. She said Wednesday that she had not received a reply.

—Eric Newcomer (Bloomberg)

https://bankinnovation.net/allposts/biz-lines/lending/startups-are-scrambling-for-access-to-349-billion-in-relief-loans/

Virtualize, secure and deploy high performance financial desktops at scale

https://bankinnovation.net/allposts/resources/sponsored/virtualize-secure-and-deploy-high-performance-financial-desktops-at-scale/

When you combine a fully remote workforce with an all-digital customer base, IT complexity and systemic risk ramp dramatically. Financial institutions need to ensure devices used by remote workers are accessible and controlled by the IT department, especially for high-performance and zero-downtime desktops, including trader and financial analyst workstations. IT teams rolling out remote office desktops will need to make sure there are up-to-date security patches and information security protocols in place and virtual administration is as effective as computers on-premises.

In this webinar, you will learn how to:

  • Run virtual apps and desktops from any device in any location at any scale, on-prem or in the cloud
  • Deploy faster and ensure always-on availability and security
  • Deliver a self-healing platform with easy 1-click DR and multi-cloud support
  • Create linear scaling and a consistent, predictable user experience across multiple geos

Featuring:

Anand Akela
Senior Director
Product Marketing, Nutanix

Kevin Lash
Director
Global Financial Services Strategy & Solutions, Nutanix


Join Bank Innovation and Nutanix for a LIVE webinar and Q&A. 
Thursday, April 23
11am ET

register button

https://bankinnovation.net/allposts/resources/sponsored/virtualize-secure-and-deploy-high-performance-financial-desktops-at-scale/

Ant, Vanguard target 900 million users with robo adviser

https://bankinnovation.net/allposts/biz-lines/wealth/ant-vanguard-target-900-million-users-with-robo-adviser/

Vanguard Group and Ant Financial’s joint venture is rolling out a new robo adviser to target the Chinese fintech giant’s 900 million users, a first step in winning a slice of the nation’s fast growing asset management business.

The venture started offering an automated service called “Bang Ni Tou” (Help You Invest), to capture people with at least 800 yuan ($113) to place in mutual funds, the companies said on Thursday.

“What we do is help users select an entire football team, instead of just one player,” Peter Zhang, chief executive officer of Vanguard Investment Advisors (Shanghai) Investment Consultancy Co., said in an interview. “We help our users by selecting a portfolio of investments that generate long-term returns.”

While the coronavirus outbreak has rocked the Chinese economy, the nation is proceeding apace with the further opening of its financial industry this month. Foreign asset managers are now rushing in to establish a foothold in a retail funds market that could grow to $3.4 trillion by 2023.

The robo adviser will recommend a portfolio selected from 6,000 mutual funds, after assessing the user’s risk appetite and investment horizon. The transactions are done automatically and the robo adviser will also help investors re-balance their portfolios if necessary.Ant, controlled by billionaire Jack Ma, is a $150 billion juggernaut that operates everything from payments to money market funds and credit scoring, The new joint venture — in which Ant holds a 51% stake and Vanguard 49% — has been approved by the China Securities Regulatory Commission.

Users can access the service through the apps Alipay and Ant Fortune, a wealth management platform.

Clare Zhao, the general manager at Vanguard Investment Management (Shanghai) Ltd., said the company’s main work with Ant is to create a service that’s as easy to use as possible.

The company has hired multiple dozens of people, said Zhang, who declined to be more specific on hiring and divulge revenue and user targets. The robo adviser charges a 0.5% management fee, with Ant and Vanguard splitting the profit based on their stakes in the venture.

China’s robo-ad­vi­sory market is expected to reach 737 billion yuan by 2022, according to a report by Lufax and consultant iResearch. Traditional financial institutions and a slew of fintech startups are gearing up to grab market share, including state-backed giants such as Industrial & Commercial Bank of China Ltd. and China Merchants Bank Co., according to the report.

In addition to Vanguard, Ant also partners with other international asset managers such as Fidelity International, Schroders Plc and UBS Group AG. Currently, these companies mainly work through Ant’s Caifuhao, an AI-powered corporate account on its wealth management platform, to provide customized investor education.

Ant plans to work with more international financial institutions in the future, it said in a statement.

Vanguard services 30 million investors globally, managing $6.2 trillion of assets as of January.

(Updates with company CEO in third paragraph)

—Lulu Yilun Chen (Bloomberg)

https://bankinnovation.net/allposts/biz-lines/wealth/ant-vanguard-target-900-million-users-with-robo-adviser/

Remote work heightens risk of data breach

https://bankinnovation.net/allposts/biz-lines/lending/remote-work-heightens-risk-of-data-breach/

As financial institutions transition employees to working remotely during the coronavirus pandemic, cybersecurity threats have made them more vulnerable, according to information and cybersecurity experts. “The hackers are going to have a field day with this, I believe they’re going to redouble their efforts on banks because that’s where the money is,” said Steve Hunt, …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/lending/remote-work-heightens-risk-of-data-breach/

B2B payments companies seek growth amid pandemic  

https://bankinnovation.net/allposts/biz-lines/payments/b2b-payments-companies-seek-growth-amid-pandemic/

Despite the current economic uncertainty resulting from COVID-19, some business-to-business payment companies are gaining traction with clients and investors alike.  “Our solution is even more relevant today than it was four weeks ago,” said Sameer Gulati, chief operating officer of the payments company Plastiq. “Some of our customers are already using Plastiq as a bridge …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/payments/b2b-payments-companies-seek-growth-amid-pandemic/

Ally Invest trade volume spikes 300% with market volatility

https://bankinnovation.net/allposts/biz-lines/wealth/ally-invest-trade-volume-spikes-300-with-market-volatility/

As the coronavirus pandemic continues to rock the U.S. economy, the volume of trade on the Ally Invest platform has skyrocketed 300% year over year in March to record levels, Senior Director Frank Lietke told Bank Innovation. Ally Invest, the brokerage arm of Ally Financial, is a web-based wealth management platform that offers two services: …Read More

Start Your Free Week Trial Today!

Subscribe now to start your free trial and continue reading. Just $5 per week after.*

Keep Reading

*Option to choose between monthly and annual billing.

Already subscribed? Log in below.

https://bankinnovation.net/allposts/biz-lines/wealth/ally-invest-trade-volume-spikes-300-with-market-volatility/