Jane Gladstone, new president of Promontory Interfinancial Network, says the recession will accelerate the shakeout among the nonbank disruptors and that small banks have an opportunity to forge new bonds with the survivors.
Lenders face quandary over offering Main Street loans to noncustomers
Many big banks say they will focus on existing customers in offering credit through the Federal Reserve's emergency lending program for midsize businesses. Complex vetting and fear of being inundated are said to be among their concerns.
4 takeaways from Biden's embrace of progressive banking policies
The Democrats' presumptive presidential nominee called for a public credit reporting agency and for the Postal Service to offer financial services, among other proposals issued through a unity task force with Bernie Sanders. But analysts suggest the recommendations are more about electoral politics than pushing for real reforms.
If it's approved, the charter is expected to lower the fintech's cost of funds and allow for more product offerings. It comes nearly three years after SoFi pulled the plug on an earlier effort to open an industrial bank.
Small banks have long led the campaign against industrial loan companies, arguing they can be used to violate the separation of banking and commerce. But now the industry's heavyweights are also taking a hard line in response to an FDIC proposal that would give tech companies a smoother path into the lending business.
Here's where Wells Fargo is donating its $400M in PPP fees
The company has established a fund that will provide capital, technical assistance and long-term recovery support to small businesses, especially minority-owned companies. The other megabanks are expected to donate their fees, also.
With coronavirus cases on the rise, Hoosier Hills CU in Bedford, Ind., has chosen to temporarily restrict access to its facilities. Observers say other institutions are likely to follow suit eventually, whether they want to or not.