The Federal Reserve Bank of New York reportedly will relocate regulators from their offices in big banks into new offices by the end of next year as critics accuse the regulators of being too cozy with the banks they oversee. The Fed is also said to be rotating examiners among banks more frequently.
Conventional banks aren't as worried about being disrupted by startups as they were a few years ago. Banks are finding ways of improving their bottom lines by partnering with fintech startups and incorporating their innovations.
Lenders are concerned about falling prices for used vehicles, which could affect lenders' bottom line. Lower prices affect lenders' ability to recoup the outstanding loan value when consumers default.
The US economy expanded at a rate of 1.2% during the second quarter as businesses pulled back on spending, and Q1's growth has been revised downward to 0.8%. Economists had expected GDP to rise 2.5% for Q2.
Small and midsize businesses are eager to adopt financial technology, but banks have been slow to cater to these customers as they focus on consumers. Banks risk losing these customers to fintech startups by not providing innovation quickly, experts say.
The homeownership rate declined to 62.9% in the second quarter, the lowest rate since 1965, according to the Census Bureau. Rising household formation could be pushing that rate down, experts say, and renters drive growth and could become buyers.
Square has launched its Scheduled Deposit service, which allows merchants to make same-day deposits for a fee of 1% on total deposits. Merchants made 30% larger deposits during tests of the new service compared with Square's current deposit option, the company says.
Credit card issuers are reducing the number of fees they charge as the market becomes more competitive. A survey of 100 credit cards finds a total of 593 fees for the cards, compared with 613 in 2015, according to CreditCards.com.
Online lender Social Finance could pursue partnership opportunities with other financial firms rather than become a bank. "It's not a viable solution for us to be a bank," said CEO Mike Cagney, citing the firm's fast growth and operations outside of lending.
Lenders are lining up perks for borrowers in Silicon Valley, where they see the potential for thousands of tech-industry workers to become millionaires. Some lenders are offering mortgages with no down payment, 24-hour approvals and financial-planning advice -- what Michael Tannenbaum, senior vice president of Social Finance's mortgage group, calls "white-glove service."
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