The gap in small business lending, which the easy-money policies of the Federal Reserve were supposed to fill, are well documented. It's more difficult for small businesses to get small loans from banks, in large part because it's less profitable for banks of all sizes to make small-dollar loans.
I returned to Europe this week to hear views from the other side of the pond, as US trade policy continues not just to pivot, but to spin. There is no doubt that a major reset of key trading relationships is now underway with implications for currencies worldwide. As the US economy seems to be outpacing growth everywhere except in China and India, will US monetary policy have unintended global spillover effects, especially for emerging markets? And more direct effects from trade policy in developed nations? European PMI figures announced today are down to 2-year lows.
The U.S. Department of the Treasury issues its FinTech report as bitcoin gains institutional momentum.
Given all the attention to cryptoasset trading over the past two weeks, it's a bit strange that the U.S. Department of the Treasury makes no mention of it in its long-awaited FinTech report (PDF).
The relationship between FinTech firms and incumbent financial institutions appears to be entering the next phase of their evolution. The first two items in this week's newsletter explore how FinTech has transformed finance and provide a context for strategic partnerships that can produce results.
This newsletter marks the end of the longest hiatus I’ve taken from FinTech Rising since I started it in October 2014. In the midst of a large client acquisition, I’ve taken the time to review the newsletter, plan some forthcoming content, and complete our initial product, FinTech Rising 2018: Toward a Golden Age of FinTech (use code FTR-SUB).
From realtime to person-to-person and crypto, digital payments continue to change the payments landscape in the United States. Even so, cash is back, to the detriment of one growing business, as covered in this issue's links.
Corporates are paying attention to realtime payments
The dramas of volatility in the price of bitcoin and scams in "coin"-offering fundraising schemes overshadow legitimate cryptofinance developments.
For nearly the last year, crypto-coins have been developing into an asset class and investment ecosystem. From two conferences I attended this year, one in Chicago and the other in Singapore, it seems to me that the Chicago firms see the opportunities for developing trading infrastructure while the Asian investors and regulators see real possibilities for financial innovation.
International FinTech startups are looking to the United States as a vast consumer and business market for their applications and services. Despite the difficulties posed by a dual regulatory system, in which multiple federal regulators join agencies in all 50 states, the wealth and size of the market beckons.