Another busy week of fintech news saw Goldman Sachs reveal the extent of their losses at Marcus, JPMorgan regretting a 2021 fintech acquisition, Stripe cutting its valuation again, LendingClub laying off staff and Silvergate receiving help from the Federal Home Loan Bank of San Francisco. Here are what I consider to be the top ten fintech news stories of the past week.
Goldman Sachs Lost $3 Billion on Consumer Lending Push from The Wall Street Journal – In a filing this week ahead of their earnings report Goldman Sachs revealed more details about Marcus and the losses that have been mounting for several years. The consumer unit that launched in 2016 has never been profitable.
Tough road ahead for U.S. fintech lenders as default risk rises from Reuters – In a report this week Moody’s said that for fintech lenders “we expect profitability to be depressed for many firms and funding conditions to remain challenging”. Loan losses are rising and ABS investors are demanding higher yields for new deals.
So Gary, are cryptocurrencies securities? from Fintech Nexus – The SEC continues to take action against crypto companies but they have still not answered the most fundamental of questions: is crypto a security or not?
Fintechs hate 36% loan rate caps. Do they have a point? from American Banker – While consumer protection advocates are probably screaming at the screen when they read a headline like this, there is a valid argument to be made here. Is it unreasonable for a consumer to pay $180 to receive a $1,500 loan to fix their car that they pay back in one month? Even though it is a 160% APR I would argue that is a reasonable cost.
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.