Daily Tearsheet: The impact of the reversal of Roe v. Wade, big banks financing fossil fuel with consumers’ money, and are banks making the most of marketing?
- The political changes around abortion will have a big economy impact on individuals, as well as the financial services industry.
- Also, the industry's is reckoning with its activity in fossil fuel financing.
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The reversal of Roe v. Wade: Its impact on economic growth, financial wellbeing, and the financial services industry
The Supreme Court overturning Roe v. Wade on June 24 this year has not only sent shockwaves across the country on a social level but will also have far-reaching economic repercussions – at a time when many Americans are still recovering from the lingering economic effects of the pandemic and the country is on the brink of a recession.
The ruling eliminates the constitutional protection for abortion – ensuring that it will become illegal or highly restricted, and allowing states to set their own laws regulating the procedure.
We take a deep dive into its impact on economic growth, financial wellbeing, and the financial services industry.
Big banks are financing the fossil fuel industry – and it’s time consumers know it’s with their money
Between 2016 and 2020, 60% of the largest commercial banks in the world collectively put $3.8 trillion in the fossil fuel industry, according to the report Banking On Climate Chaos. The top 4 contributors are American industry giants JPMorgan Chase, Citi, Wells Fargo, and Bank of America.
It isn’t always known to consumers that the cash in their checking and savings accounts is used by banks to give out loans. Mobile banking platform Ando Money believes in only allowing environment-friendly lending through its platform.
Last week, at Tearsheet’s inaugural Banking on the Planet conference, the firm’s CEO and co-founder JP McNeill elaborated that currently $18 trillion is sitting in savings and checking accounts, and can be used by banks to finance “all sorts of things” including those that make climate change worse.
Data Snack: Are banks making the most of marketing?
Banks are in a period of transition. Marketing is playing a much bigger role.
Banks are definitely taking into account the importance of marketing in their business strategies. Almost every bank said they hire people for advertising roles, according to a survey by the American Bankers Association. Meanwhile, over 90% of these banks seem to be hiring for other roles, as well – including social media management, marketing strategy, and PR, among others.
But marketing isn’t just about getting more users – it’s about keeping those users, too.
Read more (exclusive to Outlier members)
Just look at the charts
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B2B digital bank Grasshopper secures $30 million
Digital commercial bank Grasshopper Bank has raised $30.4 million to support its growth across the business and innovation economies and meet clients’ expectations by providing the latest technology and digital banking solutions. With the new capital, Grasshopper Bank has raised $160 million to date. (PYMNTS)
Ally Bank’s CMO on striking the right tone b/w marketing and credible services
Rising rates and major inflation, with the threat of recession over the horizon, have consumers seeking guidance as they sort out what it all means. Ally Bank’s CMO, Andrea Brimmer says bank marketers must combine honesty and balance. As they determine what their marketing and communications strategies will be in this period, they must also find a way to remain credible. (The Financial Brand)
Celsius Network custody clients take legal help to get their money back
Customers who held cryptocurrency in custody accounts at Celsius Network, who account for about $180 million, or just 4% of the overall assets locked up in Celsius, have banded together to hire legal counsel in a bid to get their money back. (Yahoo)
MVB Bank to offer faster payments capabilities
MVB Bank has become the first live user of the Real-Time Payments Send functionality offered by Victor Technologies and plans to offer RTP Request for Payment – supporting the faster payments needs of both consumers and businesses. (Fintech Futures)
Coinbase Prime grows its staking offering with ETH
Coinbase Prime has added Ethereum to its expanding list of staking options for U.S. domestic institutional clients. The product offers yet another crypto on-ramp for institutions, which have eyed the industry’s explosive growth with interest but haven’t always known quite exactly how to get in. Generating yield through staking plays to big firms that frequently are in search of attractive places to park money. (CoinDesk)
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