Banking – Impact Lab

Banking

Beyond Open Banking: Paving the Way for Inclusive Open Finance

January 8, 2024

Open banking has emerged as a catalyst for innovation, granting individuals unprecedented control over their financial data. This transformative movement, fueled by regulatory reforms and industry initiatives, not only promotes global financial inclusion but also signals the initiation of a thrilling journey toward the complete digitization of financial activities for individuals and small businesses.

As we approach a new era marked by the third Payment Services Directive (PSD3), the new Payment Services Regulation (PSR), and the Financial Data Access (FiDA) framework, a clear call to action resonates. The objective now is to champion open finance in a manner that fully addresses the distinctive needs of small and mid-sized businesses (SMBs), supplementing the existing consumer focus.

Banking, Bitcoin, Blockchain, Money Talk, Science & Technology News

JPM Coin debut marks start of blockchain’s value-driven adoption cycle

November 9, 2020

Despite its centralized design, JPM Coin’s real life utilization represents a step toward the mainstream adoption of blockchain technology.

JPM Coin debut marks start of blockchain’s value-driven adoption cycle.

On the heels of PayPal announcing its decision to enter the crypto sector early next year, Bitcoin (BTC) has continued its strong performance and has been hovering around the $13,500 mark for nearly a week now. In this regard, the payment giant’s foray into the crypto market has been hailed as a game changer, especially when it comes to improving the mainstream perception of the digital asset industry as a whole.

Not only that, JPMorgan Chase announced that its native digital currency offering — the JPM Coin — has finally been deployed for mainstream use by one of the firm’s technical associates. The token is designed to facilitate JPMorgan Chase’s various cross-border monetary transactions.

Continue reading… “JPM Coin debut marks start of blockchain’s value-driven adoption cycle”

Banking, Bitcoin, Coronavirus, Science & Technology News

Coronavirus is shaping up to be very bad for banks – But not for Bitcoin

September 29, 2020

The coronavirus pandemic has turned the established status quo on its head with many businesses and industries still reeling.

The world’s biggest banks have seen their valuations plummet, with billionaire investor Warren Buffett bailing out of long-held bank stocks this year—and joining many other investors in betting on gold (though the Oracle of Omaha is still not keen on bitcoin).

As banks struggle in the post-Covid world, bitcoin and cryptocurrencies are expected to see a “pandemic-led acceleration of adoption,” according to DBS chief economist Taimur Baig.

Continue reading… “Coronavirus is shaping up to be very bad for banks – But not for Bitcoin”

Banking, Bitcoin, Blockchain, Science & Technology News

Boom or bust? Welcome to the freewheeling world of crypto lending

August 31, 2020

LONDON (Reuters) – It sounds like a surefire bet. You lend money to a borrower who puts up collateral that exceeds the size of the loan, and then you earn interest of about 20%.

What could possibly go wrong?

That’s the proposition presented by “DeFi”, or decentralised finance, peer-to-peer cryptocurrency platforms that allow lenders and borrowers to transact without the traditional gatekeepers of loans: banks.

And it has exploded during the COVID-19 crisis.

Loans on such platforms have risen more than seven-fold since March to $3.7 billion, according to industry site DeFi Pulse, as investors hunt returns at a time when central banks across the world have slashed interest rates to prop up economies battered by the pandemic.

Proponents say DeFi sites, which run on open-source code with algorithms that set rates in real-time based on supply and demand, represent the future of financial services, providing a cheaper, more efficient and accessible way for people and companies to access and offer credit.

But with the promise of high rewards comes high risk.

Continue reading… “Boom or bust? Welcome to the freewheeling world of crypto lending”

AI, Banking, Bitcoin, Money Talk, Science & Technology News

Bank of Korea launches a department devoted to blockchain and AI

August 4, 2020

Bank of Korea is launching a digital innovation department that will leverage blockchain and AI to improve business efficiency.

The Bank of Korea has reportedly chosen to establish a “Digital Innovation department” through organizational reform in the second half of this year, according to the local news on July 22.

Continue reading… “Bank of Korea launches a department devoted to blockchain and AI”

Banking, Bitcoin, Money Talk, Science & Technology News

Banks in the US can now offer crypto custody services, regulator says

August 2, 2020

The Office of the Comptroller of the Currency (OCC) is letting all nationally chartered banks in the U.S. provide custody services for cryptocurrencies.

In a public letter dated July 22, Senior Deputy Comptroller and Senior Counsel Jonathan Gould wrote that any national bank can hold onto the unique cryptographic keys for a cryptocurrency wallet, clearing the way for national banks to hold digital assets for their clients.

The letter marks a major development for the crypto industry. Previously, custody was the province of specialist firms, such as Coinbase, which typically needed a state license, such as a trust charter, to offer the service to large investors. Now, large, regulated financial companies that already provide similar safekeeping services for stock certificates and the like could enter the fray.

The letter, which appears to be addressed to an unidentified bank or similar entity, notes that banks “may offer more secure storage services compared to existing options,” and that both consumers and investment advisors may wish to use regulated custodians to ensure they don’t lose their private keys, and therefore, access to their funds.

Continue reading… “Banks in the US can now offer crypto custody services, regulator says”

Banking, Economy, Money Talk, Science & Technology News

The looming bank collapse

June 12, 2020

The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

After months of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there’s another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed.

You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse.

Continue reading… “The looming bank collapse”

Banking, Housing, Money Talk, Science & Technology News

Mortgage refinancings set to surge to a 17-year high

May 31, 2020

Lenders probably will originate $1.5 trillion in refis, a 51% jump from 2019, Fannie Mae says

If you’re in the mortgage business, fasten your seatbelts. Refinance volume is set to spike to a 17-year high this year as mortgage rates fall to the lowest levels ever recorded, Fannie Mae said.

Even as other parts of the economy tank, lenders will originate $1.5 trillion in refis in 2020, a 51% jump from 2019, according to the forecast. That would be the highest level since 2003 when $2.5 trillion of mortgages were refinanced, according to data from the Mortgage Bankers Association.

The lowest interest rates on record will bolster refis after the Federal Reserve began buying mortgage-backed securities to stimulate bond demand and grease the wheels of the credit markets. The average U.S. rate for a 30-year fixed mortgage fell to an all-time low of 3.23% at the end of April, according to Freddie Mac.

Continue reading… “Mortgage refinancings set to surge to a 17-year high”

Apple, Automation, Banking, Coronavirus, mobile apps, Science & Technology News

I’m prepared for a future where I never pay cash and rarely go to the store

May 27, 2020

Since the coronavirus put New York under lockdown, I’ve completely changed my buying habits.

I haven’t swiped my credit card in at least a month, relying on online payments and Apple Pay with curbside pickup.

I actually prefer paying this way, and I don’t see myself paying with cash or card anytime soon, although I know this isn’t an option for everyone.

The coronavirus has changed just about every part of my daily life. The biggest change is that I now work remotely, and rarely leave my house. But when I do leave my house, it’s also changed my relationship to money. Namely, I almost never touch actual cold, hard cash anymore.

Continue reading… “I’m prepared for a future where I never pay cash and rarely go to the store”

Banking, Coronavirus, Finance, Money Talk, Science & Technology News

Chime is piloting instant stimulus check disbursals

April 25, 2020

US neobank Chime is running a pilot in which it gives customers their $1,200 federal stimulus checks before the government begins disbursing the payments, CNBC reports.

The neobank selected 1,000 customers who received their payments instantly on Thursday through Chime’s SpotMe feature, which usually acts as an overdraft protection feature, allowing customers to go negative in their accounts without having to pay an overdraft fee.

Chime is using its own capital to front the money to customers until the government pays out the checks, and CEO Chris Britt told CNBC that he is waiting for reassurance from the government that Chime users can’t redirect stimulus payments to other bank accounts before expanding the pilot to other users. Eligible users will largely be those who direct deposit paychecks into their Chime accounts and have previously had their tax refunds deposited into their Chime accounts as well.

Continue reading… “Chime is piloting instant stimulus check disbursals”

Banking, Business, Money Talk, Science & Technology News, security

Step-by-step guide to tokenizing real-world assets

January 6, 2020

Recent estimates place the current value of all real-world assets at around $256 trillion globally. While that jaw-dropping number is fairly stable, all of these assets keep changing owners on a regular basis.

Unfortunately, the processes used to trade these assets are completely outdated.

Ownership over a vast majority of real-world assets is still signified by pieces of paper. That’s why most transactions can take weeks or even months to complete. Asset trades are also plagued by extensive amounts of red tape, countless fees and various geographical restrictions. Furthermore, most assets are very difficult to subdivide, which makes their respective markets highly illiquid. Real estate, gold reserves and fine art are all great examples here.

Fortunately, with the recent development of tokenization, the way of owning and trading real-world assets might be on the brink of a true revolution.

Continue reading… “Step-by-step guide to tokenizing real-world assets”

Banking, Latest Trend, Money Talk, Science & Technology News

The invisible company powers almost the entire finance industry

November 21, 2019

The days of going to a bank are coming to an end.

In the past 10 years, 15,000 bank branches have shut their doors for good. And foot traffic to banks has fallen by 50%. Bank branches are shutting down left and right for a simple reason… They’re useless!

These days, you can deposit a check by taking a photo with your phone. You can open a bank account or order a new credit card in five minutes over the internet. You can even take out a mortgage without ever seeing a human banker, thanks to disruptive services like Quicken Loans.

And it’s not just banks. Digital disruption is eating away at every “old” business model in finance. Everyone from stockbrokers to financial planners is under assault.

Continue reading… “The invisible company powers almost the entire finance industry”