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Daily Tearsheet: Uncovering fraud in financial services, SMB owners are turning to emerging technologies, and Gen Z is expanding the credit market

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Daily Tearsheet: Uncovering fraud in financial services, SMB owners are turning to emerging technologies, and Gen Z is expanding the credit market

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Where Credit’s Due Ep. 7: Uncovering fraud in financial services with LexisNexis and Javelin Strategy & Research

In the seventh episode of Where Credit’s Due, Tearsheet’s lending podcast, host Iulia Ciutina speaks with Kimberly Sutherland, vice president of fraud and identity strategy at LexisNexis Risk Solutions, and John Buzzard, lead analyst, fraud & security at Javelin Strategy & Research.

With consumers continuing to take a digital-first approach to everything from shopping to dating and investing, fraudsters are finding new and innovative ways to commit fraud.

Both guests share insights on how reducing the stress of fraud allows for a more streamlined application process, making it easier for consumers to get approved for a loan or bank account. This also has implications for groups of consumers that previously had a hard time accessing credit or other types of financial products and services, as banks can verify them in a way they weren’t able to before.

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Data Snack: SMB owners are turning to emerging technologies – can banks keep up?

Bank of America’s Small Business Owner Report for 2022 surveyed SMB owners’ perspectives for the years to come, including challenges, opportunities, and the ever-changing landscape of technology that affects them as entrepreneurs. 

Times are changing, and SMB owners seem more than privy to that.

When it comes to emerging technologies, small business owners may be taking quite the futuristic view of things. The technologies they deem most important include the metaverse, augmented reality, and crypto.

Read more (exclusive to Outlier members)

The latest briefing

Lending Briefing: Gen Z is expanding the credit market

The US credit card market continues to grow, with more indicators showing that younger generations are behind this increase as they begin their credit journey.

The number of credit cards topped 500 million for the first time ever at the end of Q2 2022, up from approximately 465 million in Q2 2021, according to TransUnion‘s quarterly credit study. Overall, credit card originations increased 26% in the last year. 

Gen Z has been fueling this increase, with originations attributed to this generation up 32% between Q1 2021 and Q1 2022 (originations have a one-quarter lag in reporting). 

It’s notable that Q2 2022 credit card balances were up by 30% for Gen Z and 22% for Millennials, compared to an 11% increase for the overall population, according to VantageScore research.

Read more (exclusive to Outlier members)

Just look at the charts

1. Half of all banks in the US might disappear in the next 20 years

Source: The Financial Brand

2. A cashless world is still a long way from reality

Source: David Jimenez Maireles

Today’s stories

WebBank partners with Amex to expand card issuing
WebBank has partnered with American Express to become a card issuer and participant in the American Express network. The collaboration allows WebBank to issue credit card and payment solutions that include American Express benefits. (Finextra)

Berkshire Hathaway makes big bet on US lender Ally Financial
Berkshire Hathaway, run by Warren Buffett, has tripled its stake in online banking company Ally Financial and increased its bet that “Call of Duty” video game maker Activision Blizzard will be acquired by Microsoft Corp., despite signs that an economic slowdown is beginning to weigh on consumers. (FT)

Fed finalizes system for evaluating fintech access to services 
The Federal Reserve Board has established a tiered system for evaluating whether to grant access to its accounts and payment services, with ramifications for chartered fintechs and crypto firms. (Finextra)

Citigroup fills digital asset roles, deepening its ties to cryptocurrencies
Citigroup has added two people to its digital assets team — Ryan Rugg and David Cunningham were hired for Citigroup’s Treasury and Trade Solutions unit. Rugg will be the global head of digital assets for the TTS group. Meanwhile, Cunningham has been named director and strategic partner of development for digital assets for the TTS division. (CoinDesk)


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