The rate of return for 401(k) plans differs little based on their size, finds a report from Judy Diamond Associates. Plans with fewer than 100 participants saw a 5% rate of return over 12 months, while plans with more participants saw a 6% rate of return.
Two lobbying groups established by fin-tech startups are working to educate lawmakers about their businesses. Lawmakers are considering the best ways to oversee the growing fin-tech industry.
Banks are shifting to smaller branches that rely more on technology. "A bank today has to be a good technology company as well," said Dave Baker, president of FirstBank. "You can't just rely on a strong branch network."
Retailers and banks that offer mobile wallets are seeking ways to gain and maintain customer loyalty. Competition is pushing down profits as payment players lower fees charged to merchants in an effort to increase market share.
Capital One Financial saw auto originations rise 13% to $5.8 billion in the first quarter. Chairman and CEO Richard Fairbank said that while the lender anticipates "less growth opportunity" for auto loans, it continues to pursue lending opportunities that meet its criteria.
Warburg Pincus has invested $27 million in Varo Money, a startup that handles several financial services and says it might one day seek a banking charter. The investment is the second-largest one in a financial-technology company this year.
Social Finance has refinanced nearly 100,000 student loans with an annual default rate of less than 0.02%, says CEO and Chairman Mike Cagney. Its model relies on cherry-picking loans, which deposit-taking banks cannot do, keeping overhead costs low and building relationships with borrowers.
The Education Department changed the default rates of 21 colleges to help them avoid sanctions which would have made them ineligible for federal student loans.
The House voted along party lines Thursday to approve a measure that would block implementation of the recently unveiled fiduciary rule for retirement advice. The move is seen largely as a political statement by Republicans, because President Barack Obama has vowed a veto and the rule has Democratic support.
The Consumer Financial Protection Bureau is reopening the rule-making process for the Truth in Lending Act-Real Estate Settlement Procedures Act Integrated Disclosure rule, the agency says in a letter to FSR and seven other trade associations. The groups have been vocal about their TRID concerns, including uncertainties that are affecting secondary markets. The CFPB plans to issue a notice of proposed rule making by the end of July.
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