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Daily Tearsheet: US consumer credit remains healthy in Q1, and how fintech lenders rose in preference for SMBs

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Daily Tearsheet: US consumer credit remains healthy in Q1, and how fintech lenders rose in preference for SMBs

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Data Snack: US consumer credit remains healthy in Q1 despite macro headwinds

During the pandemic, consumers benefited from stimulus funds and other accommodation programs that provided a safety net. But today, new challenges such as inflation and rising interest rates are starting to have an impact on consumer spending power, according to TransUnion.

This stressful macroeconomic environment is incentivizing consumers to continue to be disciplined around their spending, which hasn’t yet recovered to pre-pandemic levels.

Despite inflation and rising interest rates, consumers continue to show healthy behaviors when it comes to paying off their debt. 

Read more

The latest briefing

Embedded Briefing: How embedded platforms rose in preference for SMBs looking to borrow

Small to medium-sized businesses need credit — especially now, as they bounce back from the pandemic-fueled economic downturn. While data from the U.S. Chamber of Commerce suggests SMBs’ recovery is going strong, there is a growing demand for capital to sustain the pace of recovery and continue growth.

82% of SMBs go bust due to poor cash flow management, and another 29% simply run out of cash. They need access to capital. However, even with high demand, American financial institutions are unable to serve SMBs effectively.

Why have traditional lenders been unable to effectively meet SMB demand? Because they can’t figure out how to do it profitably.

Read more (exclusive to Outlier members)

Just look at the charts

1. How APIs will drive the next evolution in transaction banking

Source: David Jiménez Maireles

2. 25 fintech startups to watch this year

SourceFlorian Graillot

Today’s stories

NerdWallet to acquire On The Barrelhead
American personal finance outfit NerdWallet has agreed to pay $120 million to buy On the Barrelhead, a platform that provides consumers and SMBs with credit-driven product recommendations (Finextra)

Fewer deals, larger rounds – but still way down
Crunchbase found that fintech startups raised $1.5 billion from June 16 to June 23 across 39 deals — compared to $1.4 billion raised across 53 deals the week prior, and $1.2 billion across 59 deals 2 weeks prior (TechCrunch)

‘Eco-anxiety’ is becoming a threat for the financial industry
Young people are becoming more climate-anxious, and they need to see people, organizations, and governments making positive changes — this is where ESG reporting and communication comes in (Fintech Futures)

China is making a move to foster its fintech sector
Chinese President Xi Jinping chaired a top-level meeting that approved a plan for the healthy development of China’s large payment firms and fintech sector (Reuters)

JPMorgan to cover employee travel costs for abortions
JPMorgan Chase told workers that it will pay for travel to states that allow legal abortions — the news came as part of internal communication to employees explaining expanded medical benefits set to begin in July (CNBC)

Stay ahead of the game with Outlier — Tearsheet’s exclusive members-only content program and join the leading financial services and fintech innovators reading us every day.

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