fintech digest
Tech Efficiency in Asset Management, Tightening Lending Standards & More
Research Team
11 August 2023
How asset managers can create strategic distance with technology
Asset managers are investing more in technology but not necessarily with an optimal strategy. These investments have been growing by approximately 6 percent per year, according to McKinsey’s 2021 Global Asset Management Survey. Most asset managers focus their technology investments on coping with complex legacy technology estates that are increasingly expensive to maintain. But asset managers are more likely to build resiliency and meet today’s challenges if they pursue new efficiencies in maintenance spending—for example, moving on-premises technology to the cloud—and use the freed-up resources to invest in revenue growth opportunities.
Fintech lenders tighten lending standards, bolstering debt financing
U.S. financial technology companies are tightening their lending standards, a move that has bolstered their access to debt financing from Wall Street investors, according to industry executives.
During the COVID-19 pandemic, many fintechs began lending to borrowers with imperfect credit, but Wall Street investors were comfortable buying their asset-backed securities as government stimulus ensured consumers had the money to meet repayments.
First ETF with 100% protection against losses launches in US
The world’s first exchange traded fund to offer 100 per cent protection against losses launched in the US on Tuesday.
The Innovator US Equity Principal Protected ETF will stretch the increasingly popular “buffered” ETF concept to its limit.
“This is something that we have been looking at for a number of years,” said Graham Day, chief investment officer of Innovator Capital Management. “We have started to see a lot more interest in this type of product.”
Student loans, simplified: How fintech is revolutionizing the borrowing process?
The advent of fintech and its instant popularity among college students is demolishing the monopoly of private banks in college financing.
If you are new to the term, ‘fintech’ encompasses two dynamic concepts, finance and technology. Combining the latest digital technology and financial services, fintech holds the potential to revolutionize loan financing for students.
PayPal launches U.S. dollar stablecoin
Fully-backed, regulated stablecoins have the potential to transform payments in web3 and digitally native environments. To address that emerging potential, PayPal (NASDAQ: PYPL) announced the launch of a U.S. dollar-denominated stablecoin, PayPal USD (PYUSD).