FIs are unsure whether to swipe right or left on the whole relationship
As I sifted through the recent Trump and financial world shake-ups for this week’s 10Q installment (trust me, there were plenty), I finally zeroed in on today’s story — how crypto is taking on a new life under the president’s watch and what that could mean for Wall Street banks.
In a move that has both crypto enthusiasts and traditional bankers adjusting their spectacles, Trump has gone full steam ahead into the world of crypto. From launching his own DeFi platform, Liberty Financial, to embracing meme coins and reshuffling government positions to favor digital assets, Trump’s dive into crypto is a rollercoaster ride, packed with twists, turns, and high stakes.
For him, these initiatives aim to propel the United States to the forefront of cryptocurrency.
Some of his pivotal actions in this direction include:
~ From ‘I’m not a fan’ to ‘Let’s make crypto great again’: Rewind to 2019, and Trump was calling Bitcoin a “scam” and tweeting that crypto was “based on thin air.” He’s now one of the loudest voices in crypto, a position solidified by the launch of his World Liberty Financial (WLFI).
WLFI offers lending, borrowing, and yield farming opportunities in a way that, according to Trump, “keeps financial power in the hands of the people, not the globalists.”
The platform operates with a strong focus on stablecoins, specifically those pegged to the US dollar, in an effort to solidify the dollar’s role in global digital transactions. Within weeks of launch, WLFI transferred $307 million in crypto assets to Coinbase Prime, raising eyebrows in both crypto and traditional banking circles.
~ Meme coins FTW? If WLFI was Trump’s serious play into DeFi, his next move was pure spectacle: embracing TrumpCoin (not officially affiliated with him, but heavily inspired). The meme coin skyrocketed overnight after he gave it a nod during a rally, stating, “I hear there’s a Trump coin. Maybe it’s the best coin. People love it.”
While most politicians stay far away from meme coins, Trump has leaned in, fueling speculation that he may formally endorse a cryptocurrency of his own. And in the world of meme coins, a simple tweet or soundbite can send prices soaring — or crashing.
~ Crypto-friendly faces in high places: Trump’s been appointing pro-crypto figures to key government positions.
David Sacks, a crypto advocate, was appointed to lead the SEC (U.S. Securities and Exchange Commission) sparking hopes of a more crypto-friendly policy shift that could ease digital asset integration for financial institutions.
Sacks took to Capitol Hill this week to unveil the administration’s vision for cryptocurrency regulation. The Senate Banking, Senate Agriculture, House Agriculture, and House Financial Services Committees are joining forces to create a bicameral crypto committee. Their main focus is to create a stablecoin bill and set up a federal regulatory framework for digital assets.
The Federal Reserve and FDIC are also considering pro-crypto policy shifts, encouraging deeper institutional adoption. Travis Hill, the acting FDIC chairman appointed by Trump, noted at the Senate Banking Committee this week that the FDIC is reevaluating its stance on crypto regulation to provide a clear path for FIs. The regulator is also revisiting its stance on insuring crypto-related deposits. If crypto firms get FDIC backing, it could make digital assets more palatable to mainstream banks and investors.
Hill also pointed out that the agency had previously made it harder for banks to engage with crypto, referencing past communications that discouraged such involvement.
Cynthia Lummis, a longtime Bitcoin supporter, was also tapped by Trump for the position of Treasury Secretary.
Big Banks: Panic, Adapt, or HODL (Hold On For Dear Life)?
Earlier, banks were happy with Trump’s pro-business and deregulation policies. But now, with the new president reshuffling the financial deck and rolling out the red carpet for crypto, banks are likely stuck in a corporate identity crisis. Should they dive headfirst into the DeFi space or stick to the tried-and-true methods that have kept them at the top?
Banks, Bots, and Big Ideas; but what’s the deeper insight we’re missing?
Every January, the world’s finance players head to Davos, Switzerland, for the World Economic Forum (WEF). This year was no exception, running from January 20 to 24 under the theme Collaboration for the Intelligent Age.
AI was last year’s favorite talking point, popping up in nearly every session. This year it was practically the event’s co-host, sharing the spotlight with American politics — the virtual appearance of the newly elected US President, and his polarizing comments about EU regulations, which didn’t exactly win him any fans.
AI: The front and center
Image Source: World Economic Forum
At WEF 2025, AI wasn’t just a topic — it was the topic. From business to governance, nearly every session revolved around AI’s impact from different angles. Key discussions included:
Can National Security Keep Up with AI? (The risks and rewards of AI in defense)
Who Benefits from Augmentation? (A deep dive into AI-human collaboration)
Industries in the Intelligent Age (Which sectors are evolving — or disappearing?)
Media Briefing: Unlocking the North Star for AI Adoption, Scaling, and Global Impact (Finding AI’s true potential)
State of Play: AI Governance (Balancing innovation and regulation)
The Dawn of Artificial General Intelligence? (How close are we, really?)
AI: Lifting All Boats (Can AI drive growth for everyone?)
Reskilling for the Intelligent Age (Preparing the workforce for what’s next)
Figuring out whether AI is a threat, a tool, or a team player
AI’s influence in banking and financial services has been a hot-button issue for a few years now, and it’s only getting more interesting. Financial leaders at WEF boiled it down to 3 key takes on AI’s role in banking:
1. AI as the job cutter: AI could shake up the job market, with potential job losses in banking as tasks become automated
From startups to stock markets, this new leader is ready to tackle the challenge head-on
The start of a new year is often a time for goal-setting and implementing organizational changes. Wise Platform embraced this spirit by appointing Lauren Langbridge as its new Commercial Director for North America.
In this role, Lauren will lead the expansion of Wise Platform’s strategic partnerships integrating into financial services firms, growth initiatives, and commercial strategies across the region.
Before joining Wise Platform, Lauren worked at Currencycloud, a private UK-based firm that offers a fully cloud-based platform for B2B cross-border payments. She helped the company grow from a startup into a global player in cross-border payments. Visa acquired Currencycloud in 2021 for $963 million (£700 million).
I had the opportunity to sit down with Lauren to learn about her career path, her vision for Wise working with banks, and how she’s managing the transition from a private firm to a leadership role in a public company operating extensively across North America.
Lauren Langbridge, Commercial Director for North America at Wise
How does managing strategies in a public company differ from your experience in a private firm?
Lauren Langbridge: Having transitioned from a VC-backed private firm to a publicly traded company, I’ve experienced firsthand the differences and opportunities in managing sales and revenue strategies. One significant shift is the level of scrutiny and accountability. At a public company, there is a broader range of stakeholders — investors, analysts, and even employees — who are closely watching performance.
The confetti from New Year’s celebrations has barely settled, but the banking sector is already throwing its own party. This week’s Q4 2024 earnings results have been nothing short of a financial fireworks show, with big banks flexing their muscle in style.
Leading the charge was J.P. Morgan, reminding everyone why it’s the heavyweight champion of US banking. Profits skyrocketed 50% to $14 billion for the quarter. Revenue? Up 10% to $43.74 billion, contributed by a net interest income of $23.47 billion that exceeded analyst expectations. J.P. Morgan isn’t just making money — it’s making history.
Citi brought home a solid $2.86 billion in net income for the final 2024 quarter. Its investment banking arm stole the spotlight, with revenue rising 35% YoY to hit $925 million.
The numbers painted an equally lively picture over at Goldman Sachs, Wells Fargo, Bank of America, and Morgan Stanley.
Goldman’s profit roughly doubled from a year earlier to $4.11 billion. Revenue soared 23% to $13.87 billion, driven by strong gains in equities and fixed-income trading, along with improved investment banking results. Wells Fargo posted a 47% surge in net income, reaching $5.1 billion, up from $3.45 billion in the same quarter last year, with revenue hitting $20.4 billion. Bank of America delivered $6.67 billion in net income on $25.35 billion in revenue. Meanwhile, Morgan Stanley more than doubled its quarterly profit to $3.71 billion, fueled by a standout performance in its equities trading division, which saw revenue skyrocket 51% to $3.3 billion.
The Sweet Spot
Even before the ball dropped on New Year’s Eve, banks were riding a wave of optimism, and here’s why:
Wishing you a fantastic start to the New Year and an amazing journey ahead!
Let me ask the question we all know the answer to: “New Year, New Me?” Pfft, we’ve all overused that resolution like a credit card with no limit. The financial services industry has its fair share of those shiny pledges.
But here’s something intriguing to kick off my first 10Q Newsletter of 2025: this year didn’t just start on a positive note — the industry’s optimism actually started brewing before the ball dropped. That’s a refreshing change from the gloom and doom of recent years. So, let’s dive into how and why the financial world is stepping into 2025 with a little extra spring.
On a broader, behind-the-scenes level, December — when holiday vibes trump work emails — turned into a surprise whirlwind for us. Instead of the usual festive lull, we experienced an inbox overload with a flurry of company news, pitches, and developments. Clearly, this 2024 December decided to break tradition.
On the external front, I’m noticing a few key trends emerging in the markets and public firms. The IPO scene for 2025 is gearing up for a surge, AI looks primed for yet another standout year, and Web3 is showing signs of a triumphant return (looks like AI’s got some competition in the ring this year).
Let’s take a moment to see what’s taking shape in each of these areas.
The 2025 IPO landscape
Many big names are gearing up to make their market debut, including:
2025 is here, and with it comes the excitement of fresh starts and new horizons. But before sprinting into the future, let’s take a thoughtful pause to reflect on last year’s journey.
Join me as we explore the highlight stories from the 10Q universe and celebrate the close of 2024!
Back in February 2024, I spoke with Shruti Patel, the Chief Product Officer for the Business Banking Segment at U.S. Bank. We talked about all things SMBs — what’s working, what’s not, and how financial institutions can step up their game.
One thing that really gets me is the sheer tenacity of small business owners. Balancing responsibilities and confronting obstacles daily, they persevere with unwavering hope for better financial opportunities. Where does that confidence come from?
According to Shruti, SMB owners are resilient, adaptable, and always ready to tackle whatever comes their way. They chalk it up to their work ethic, leadership skills, and adaptability. And they’re pretty good at managing stress too.
In a U.S. Bank survey, small business owners revealed some of their secret stress-busting hacks:
Reminding themselves why they started their business (aka the “this is my dream” mantra)
Making work fun or meaningful (because why not?)
Setting boundaries (read: not answering emails at midnight)
Regularly tweaking their business strategies (change is good)
Hiring help to lighten the load (delegation can be a superpower)
But here’s the rub: Small business owners wear all the hats — CEO, accountant, HR, janitor — and their biggest pain point is a lack of time. Enter digital solutions, the capes SMBs need to wear to save the day, according to Shruti. She shared that 82% of small business owners believe investing in digital tools could reduce their stress, and 42% say it would free up time for more strategic work.
Historically, banks have given their SMB customers more and more money movement solutions for accepting payments and for making payments (POS, ACH, Zelle, Wires, RTP, BillPay in banking app). The real puzzle isn’t just about building the tech — it’s about translating it into SMB-speak. For many small business owners, payment rails might as well be train tracks to nowhere. They’re burning $200 a month on a jumble of tools and sacrificing up to 40 hours playing admin instead of entrepreneur, explained Shruti.
Shruti’s take? It’s time for financial institutions to step up and deliver smoother digital tools that bring everything together in one place. This could be a central dashboard that connects all the dots — front office, back office, and everything in between — combined with other measures.
Last year, partnerships have been front and center — some thriving, others combusting (hint: Apple-Goldman). With collaboration such a hot topic, I reached out to industry pros to get their take on how to prevent cracks in collaborations.
Finance and politics — the perfect storm of power and policy
The dust is settling, and the nation is slowly adjusting to the idea of Donald Trump’s return to the White House. Although he won’t officially assume office until January 20, 2025, his goals and plans are already emerging at a brisk pace via Truth Social, dropping occasional curveballs to the public — in classic Trump fashion.
Last month, we explored the key cause-and-effect dynamics that could shape the banking sector under Trump’s second presidency. This week, our spotlight shifts to his newest team members, who operate at the tricky intersection of finance and politics.
In November, Trump made headlines with one of his first appointments: Matt Gaetz, a lawyer and politician, to lead the Justice Department. The decision sent shockwaves through the financial sector, as Gaetz’s controversial history — highlighted by a federal investigation into allegations of sex trafficking (which ultimately did not result in charges) — added a layer of unpredictability to Trump’s prospective tenure.
More recently, the newly elected 47th President, tapped some seasoned financial leaders to oversee pivotal roles in his government, signaling his strong intent to weave financial expertise into the fabric of his administration.
Financial heavyweights ready to step into key roles within Trump’s administration include:
Citi’s risky gamble with demotions and salary hike caps
With the year winding down, banks are gearing up to chart fresh goals and objectives for the future. But first, they must face the tricky task of reviewing the current year’s performance — complete with the heated debates over promotions and bonuses. It’s a messy, high-stakes conversation that’s far from anything straightforward.
Even more reason to celebrate this Christmas: After a two-year drought, where high interest rates stifled dealmaking and squeezed fees for investment banks and money managers, activity levels are now recovering. Last month, pay consultancy Johnson Associates shared insights that Wall Street bonuses are set to jump by as much as 35% this year, fueled by a rebound in corporate deals, stock sales, and debt transactions in 2024. Investment bankers working on debt transactions stand to benefit the most, with expected increases ranging from 25% to 35%. This is particularly promising for Goldman Sachs’ investment banking division.
The mood surrounding M&A, dealmaking, and investment banking has also turned largely positive with Trump’s return to the political scene. Under his previous administration, banks were more active in stock buybacks, which boosted stock prices by shrinking the number of outstanding shares. Moreover, Trump’s strong pro-deregulation stance and more relaxed approach to antitrust enforcement could pave the way for a surge in mergers and acquisitions, offering banks greater opportunities to profit from both direct deals and a higher volume of transactions.
Not so fast there: However, not all members of Wall Street institutions may find a pot of gold at the end of the rainbow. Citi, for example, is moving in the opposite direction, opting for a more conservative strategy in handling year-end bonuses, raises, and promotions.
Remember when I covered Citibank’s bold step last year, launching a cost-cutting campaign that included its largest-ever layoffs and an overhaul led by CEO Jane Fraser? Dubbed Project Bora Bora, the plan was supposed to conclude by March 2024. Although it’s likely not over yet and it’s unclear where things stand internally, the aftermath is still reverberating, now manifesting as reductions in salary hikes and employee demotions.
Retention, engagement, and access — keys to better reward programs
Loyalty programs have evolved into a fundamental aspect of consumer culture, widely regarded as critical for fostering customer loyalty. However, questions remain: How effective are these programs in retaining customers, how do different generations interact with them, and how accessible are they to the average consumer?
I spoke with Shikha Narula, Bank of America’s Head of Rewards, to explore these topics and how Bank of America’s Preferred Rewards program, now a decade old, measures and evaluates its performance in these areas.
Shikha Narula, head of rewards at Bank of America
Q: How does Bank of America ensure that all members feel valued and engaged in the Preferred Rewards program regardless of their tier?
On a late summer morning in New York City, industry leaders gathered at Mastercard’s Innovation Hub for Tearsheet’s flagship The Big Bank Theory Conference 2024. The event this year was dedicated to exploring the future of small business support in the financial sector. Attendees, ranging from fintech startups to established banking incumbents, anticipated insights from some of the most influential voices in the field.
Setting the Stage: The Global Impact of Small Businesses
Kicking the day off was Salah Goss, Senior Vice President for Social Impact at MasterCard’s Center for Inclusive Growth. Goss began by painting a vivid picture of the small business landscape worldwide.
Salah Goss, Senior Vice President for Social Impact, MasterCard
“Imagine a world without small businesses,” Goss challenged the audience. “It’s almost impossible, isn’t it? That’s because small businesses make up 90% of businesses and 50% of employment worldwide. In the US alone, they account for 50% of the GDP.”
Goss went on to introduce MasterCard’s “Strive” program, a global initiative designed to support small businesses through three key pillars:
Access to credit
Access to digital tools and digitization
Access to networks and know-how
She shared an inspiring success story that brought these pillars to life. “Let me tell you about Brian,” Goss said. “She’s an urban farmer in Watts, a community in LA, where we support an organization called Think Watts. Through our digital payment tools and analytics, She could suddenly see which plants her local farmers’ market preferred – indoor houseplants or outdoor flowers. Brian’s sales skyrocketed by 70%. That’s the power of digitization for small businesses.”
Goss continued, “In Strive USA alone, we’ve already helped partners unlock about $44.2 billion in affordable credit to small businesses. But we’re not stopping there.”
Beyond the goods and services SMBs offer they often also function as community hubs. Critically, SMBs provide jobs and fuel for their local economic engines; just under half of private sector employees are employed by one of the 34,000,000-plus SMBs in the US.
While every business is unique, there are some common challenges— concerns around tracking, forecasting, and understanding cashflow, for example. Time is another: SMB owners and managers wear so many hats, from selling a product or service to often serving as a one-person HR department.
“Running a small business is hard and owners are looking for help. Frequently, they’re turning to the partners they already trust, like their banks, to help solve these pain points. As our co-founder and CPO, Tomer London, likes to say, ‘There’s never been a better time to build tools for SMBs.’ Banks have an incredible opportunity to do just that,” said Yi Liu, General Manager of Gusto Embedded.
The Art of Partnership: A Banker’s Perspective
Mark Valentino, President of Business Banking at Citizens Bank took the stage, dressed in what he jokingly referred to as his “banker’s uniform.”
Mark Valentino, President of Business Banking, Citizens Bank
“I was told to give a TED-style talk,” he quipped, “but I don’t own any turtlenecks, so you’ll have to settle for this suit.” The room broke out in laughter, creating a warm atmosphere for his insights on the importance of partnerships and integration in small business banking.
He outlined three key principles, emphasizing the importance of understanding small business needs. “We call it the guiding North Star,” he explained.
Truly understanding the needs of small businesses. Are you solving the right problems? “Because let me tell you, we’ve all been guilty of rolling out great ideas that solved the wrong problem.” Valentino emphasized that it is critical to identify customers’ pain points accurately, and not just roll out great ideas that don’t address their actual needs.
Integration and creating seamless, frictionless experiences for customers. He discussed the importance of integrating solutions within the Citizens ecosystem so customers don’t have to juggle multiple applications. “Everything we’re doing at Citizens is about integration. We want [our business customers] to live in there and be able to do everything, whether it’s their payroll, payments, or their invoicing needs. We want them to be able to interact with their customers and their vendors all in one sign on,” he said.
Fostering a culture of growth, not just for Citizens’ own profitability, but for helping small business customers grow and succeed. He gave examples of partnerships like Mastercard Digital Doors, which offers marketing and financial tools to small businesses, and Luminary, a gender inclusive, global professional education and networking platform created to address the systemic challenges impacting women and our allies across all industries and sectors.
The banker painted a vivid picture of the typical small business owner’s challenges. “Picture this,” he said, gesturing to the audience. “An electrical contractor in Boston, a minority-owned consulting firm in New Jersey, and a veteran-owned orthopedic treatment center in New Hampshire. What do they have in common? They’re all going up against larger competitors, struggling to hire and retain employees, and they’re all super stressed out. They’re short on time and long on problems.”
To aid SMBs get things done fast one way is to consolidate tools. “Time-strapped SMB owners increasingly seek integrated solutions to solve their business’s needs. That’s why there is traction among banks looking to offer additional value-added services to their SMB customers, whether payroll, point-of-sale solutions, or invoicing services,” said Liu.
The Digital Revolution in SMB Payments
As the event progressed, Chris Ward, head of enterprise payments at Truist, took the stage to discuss the evolving world of small business payments. Ward introduced what he called the “3S’s of the economy”: Simplicity, Speed, and Safety.
“Think about the last time you ordered something on Amazon,” Ward challenged the audience. “Did you need someone to come to your house and teach you how to do it? Of course not! That’s the level of simplicity we need to strive for in financial services.”
Chris Ward, Head of Enterprise Payments, Truist
Ward delved into the persistent use of checks in small business transactions. “You’d think after the pandemic, everyone would have abandoned checks,” he mused. “But here’s the kicker – check volume in B2B transactions is still growing!”
This revelation led to a fascinating discussion on fraud risks associated with checks. Ward shared an anecdote about his daughter, who also works in the payments industry. “She’s always joking with me about her smaller customers,” Ward chuckled. “I can’t believe these customers don’t use Positive Pay,’ she says. It’s a family affair in payments, folks!”
Cash is still king for SMBs
Scott Beyer, Head of Business Banking Digital Experience at US Bank, presented on the changing payment and cash flow needs of small and mid-sized businesses (SMBs). He highlighted how these needs are driving SMBs to adopt new technologies, and how financial institutions (FIs) can simplify the complex ecosystems SMBs operate in.
Scott Beyer, Head of Business Banking Digital Experience, US Bank
He discussed findings from a recent US Bank survey, which revealed that 87% of small businesses remain optimistic about their future, despite challenges such as inflation and talent shortages. Small business owners are eager to adopt technology that helps streamline operations, but they seek solutions that save time and allow them to focus on running their businesses rather than managing financial processes.
Beyer identified three critical areas for FIs to focus on:
Availability of Digital Products: Ensure banking products are easily accessible and digitally available, enhancing convenience for small business customers. Integration of Services: Build seamless internal and external integrations to simplify business banking, payments, and other operations for clients. Data Harmonization: Align and consolidate fragmented data to deliver personalized insights and streamline financial management for small businesses.
Beyer concluded by urging banks to prioritize investment in infrastructure and data integration to create a more connected banking, payments, and software ecosystem that better serves SMBs.
When conceptualizing what their software ecosystem is going to offer to their SMB clients, banks need to consider the biggest pain points for these customers. “Running payroll for 300k+ SMBs has taught us a few lessons about SMB cashflow. Many customers tell us payroll is their largest regular expense. And meeting payroll each week — will they have the funds, will payments from customers clear in time, do they need to access a line of credit — can be a source of stress. However, banks also have visibility into the revenue side of an SMB business and are in a unique position to offer payment options and digital tools that help SMBs better understand, manage, and forecast their end-to-end cashflow,” said Liu.
Embracing the Future: AI and Beyond
The event included a look toward the future with a discussion on emerging technologies. Goss shared MasterCard’s latest innovation – an AI-driven chatbot for small businesses.
“But here’s what makes it special,” Goss explained. “It’s inclusive. When business owners from underrepresented communities ask a question, the response reflects their unique experiences and needs. It’s not just a chatbot; it’s a digital ally that truly understands them.”
After the day’s speakers and three closed-door working groups exploring SMB issues in depth, it was time for networking before calling it a day. This year’s The Big Bank Theory was a catalyst for change, intimating a new era of empowerment for small businesses in the digital age. As one attendee was overheard saying, “This isn’t the end of the conversation. It’s just the beginning.”
