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Financial Blog

MoneyLion brings traditional banking ever closer to obsolescence

The lingo of personal finance is rapidly changing. Mint has replaced our nagging parents and significant others who think our spending is out of control. Wealthfront and Betterment took away our personal wealth managers. Heck, we don't even have to go to a bank anymore to get a loan with SoFi or Lending Club.

Since 2013, CEO Diwakar Choubey and his team have been developing MoneyLion to combine personal loans with credit monitoring and personalized financial nudges.

The way something is presented is often more important than what is being presented. MoneyLion wants to get people spending better by presenting information differently.

Users can simulate their future credit score in MoneyLion. Having a window into the future can help people counteract forces like hyperbolic discounting. For non-CogSci folks, this is how researchers explain why people can easily see the value in setting their alarm for 6am at night but find it hard in the morning to see the same inherent value and wind up smashing the snooze button 3 times.

In a financial context, people are really bad at anticipating future frustration. If I buy an Apple Watch with my credit card now, my brain doesn't want me to be able to imagine the bill in my mailbox.

Customers check their credit score on MoneyLion an average of 3.9 times a month. This degree of transparency makes people sweat in the short-run but reduces the likelihood of bad decision making that induces long-term elevated stress.

The platform also leverages data to recommend loans when they are most needed. If spending patterns appear incongruent with prior months, MoneyLion can suggest a small loan to smooth things over. A user can receive overdraft warnings within the app and take a $200 advance in about 15 minutes.

Tim Hong, one of the key behavioral architects of the platform, wants MoneyLion to dream big. Many of the tedious financial tasks we all dread can be streamlined with readily available technology.

How can we prevent fraud? Facial recognition of course. Need a verification photo for a loan application? Just take a selfie.



MOVES-BNP Paribas makes senior appointments in retail banking division

PARIS, July 4 BNP Paribas made senior appointments within the management of its retail banking operations on Monday, aimed at helping Frances biggest lender increase the share of revenue that comes through digital channels in the future.

It appointed Sophie Heller as chief operating officer for Retail Banking and Services, whose main task will be to help the various BNP Paribas Retail banking businesses to transition their business models, enhancing the customer experience through greater use of digital tools and channels.

It appointed Sophie Heller as chief operating officer for Retail Banking and Services, tasking her with helping the units various businesses increasingly reach clients through digital platforms.

Heller, who previously headed retail banking at ING Direct, will become a member of the Executive Committee of BNP Paribas Domestic Markets division, which encompasses retail banking operations in the euro zone countries.

BNP Paribas also appointed Beatrice Cossa Dumurgier as head of Personal Investors and named Franciska Decuypere head of the retail and small and mid-sized enterprise banking at it International Retail division.

BNP Paribas is reducing its branch networks in its key domestic markets, such as France, Belgium and Italy, while investing in online banking.

It had said earlier that over the medium term it aimed to boost digital sales and client acquisition in particular by offering the possibility to subscribe to all products online. (Reporting by Maya Nikolaeva; Editing by Leigh Thomas)



The Cuban Banking Sector in 2016

Cuba has a strong tradition of banking. Its first bank began operating in 1832, and by 1959 Cuba had over 49 commercial banks with over 200 branches. The largest privately owned bank in Latin America at the time was Cuban, and two Cuban banks ranked in the top 500 globally. Additionally, a number of foreign banks were located in the Cuban market, including three US banks.

After the Cuban revolution, both Cuban and foreign-owned banks were nationalized. Currently, the Cuban banking system is severely limited, unable to provide substantial credit to the private sector or offer trade finance to support international commerce. Some Cubans have acknowledged that their banking system is far from international standards and in need of reforms. Some of these needed reforms include measures to increase lending opportunities, as well as actions to separate state functions from the business functions of banks.



JPMorgan Cleared For India Expansion

JPMorgan Chase is expanding across India following approval from banking authorities in the country.

Reports on Friday (July 1) said JPMorgan received clearance to open three new branches in the nation. In a statement, the bank’s chief executive for South and Southeast Asia, Kalpana Morparia, said JPMorgan has a great commitment to this country.

The three new branches will add to the company’s existing single branch, located in Mumbai. According to Morparia, expanding its presence is an effort for JPMorgan to strengthen its position among multinational corporations in India, as well as local firms trading internationally.

Reports pointed to the recent departure of other US and foreign banks from India. Only a handful of the 46 foreign financial institutions that have launched operations in India have managed to build a sizable business, reports said.

And last year, UBS Group and Morgan Stanley both retreated from India by surrendering their commercial banking licenses. Goldman Sachs also decided to hold back from its previous plans to enter India’s commercial banking sector, reports said.

Analysts said some foreign banks have reduced their India presence after economic growth failed to live up to expectations in the country. Others pointed to local regulations that require banks to allocate a portion of their lending activity to borrowers from economically weaker backgrounds, according to The Wall Street Journal, which makes lending expensive for FIs.

JPMorgan Chase recently surpassed analyst expectations with its most recent quarterly earnings report. Overall revenues decreased by 3.4 percent year over year, the company said in April. Rising bad loan provisions are proving costly to the bank, with JPMorgan setting aside $1.8 billion in the first quarter to cover these costs, reports said.



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