Daily Tearsheet: Genesis and BlockFi on crypto lending, big banks’ Q2 results, and reviewing the embedded industry and supplier landscape
- Genesis and BlockFi are two of the biggest centralized lending platforms out there, so tune in to find out how the crypto lending market is evolving.
- Also on Tearsheet today, more big banks are reporting their quarterly earnings in this new rising interest rate environment.
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Where Credit's Due Ep. 5: Crypto lending with Genesis and BlockFi
In the fifth episode of Where Credit’s Due – Tearsheet’s lending podcast host Iulia Ciutina speaks with Matt Ballensweig, managing director and co-head of trading and lending at Genesis, and Shannon Allmon, General Manager of Retail at BlockFi.
Genesis and BlockFi are both some of the biggest centralized lending platforms out there, so tune in to find out how the crypto market evolved into offering retail and institutional investors the possibility to lend with crypto assets as collateral, how they’re able to give out high yields on deposit accounts and what needs to happen regulatory-wise to gain more trust with the wider finance community.
Lending Briefing: Big banks' Q2 results and rising commercial loan volumes
It’s the second quarter earnings season, and the numbers are in at most of the top banks in the US. While most banks missed consensus estimates as they grappled with a challenging macro environment, their bottom line was rescued by a boost in net interest income.
While rising interest rates are a challenge for most financial market participants, banks benefit from this as lenders, allowing for a wider spread between the rate they pay for deposits and the rate they charge for their loans.
However, higher interest rates don’t automatically translate into more revenues for banks. As borrowing becomes more expensive, banks lose on origination fees as lending volumes shrink. This is particularly relevant in the mortgage divisions for example, as well as investment banking.
We take a look at the NII growth reported by the banks with the largest wealth management businesses in the US – Bank of America, Wells Fargo, and Morgan Stanley.
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The latest briefing
Embedded Briefing: Reviewing the embedded industry and supplier landscape
How many embedded suppliers are too many? Is there still room for more to enter the space? How far are we from the opportunity drying up? These are some of the questions we have when we read the news of some new embedded supplier launching.
Tearsheet's reporter Subboh Jaffery sat down with some industry experts to assess the situation, and see where they understand the embedded supplier landscape currently stands, what’s fueling its growth, and where it is headed.
He spoke with Yaron Oren, the chief revenue officer of the embedded finance platform MeasureOne, Sal Rehmetullah, president and co-founder of payment processor Stax, and Ralph Dangelmaier, CEO of payment orchestration platform BlueSnap -- and for a broader perspective, he sat down with Ruby Walia, a senior advisor for digital banking at Mobiquity, a digital consultancy.
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Just look at the charts
1. The evolution of embedded finance through the years
2. Innovation approaches in the FinServ sector
Mahalo Banking raises $20 million in funding
Mahalo Banking, a CUSO that provides online and mobile banking solutions for credit unions, completed a $20 million funding round this month that was led by Ohio-based Superior Credit Union, Ky.-based Park Community Credit Union, and Del.-based Dover Federal Credit Union (Finextra)
Fintech experts fret over CFPB's conviction in 'safe harbors'
The Consumer Financial Protection Bureau’s decision to end temporary “safe harbors” for two financial technology companies is raising eyebrows in the community, with some wondering if the agency is committed to promoting financial innovation (Roll Call)
Not every company is struggling in the fintech downturn
Despite a cooling market, corporate spend management startup Ramp reports that it has more than doubled its revenue run rate since the start of the year. Ramp confirmed in March that it had secured $550 million in debt and $200 million in equity in new financing that doubled its valuation to $8.1 billion (TechCrunch)
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