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Where Credit Is Due Ep. 2: How PayPal and Square are using data and speed to drive SME loan growth
In the second episode of Where Credit’s Due – Tearsheet’s Lending Podcast, host Iulia Ciutina, Senior Reporter at Tearsheet, speaks with Luke Voiles, Managing Director of Square Banking, and Bernardo Martinez, Vice President of Global Merchant Lending at PayPal.
The two guests talk about small business loans, as obtaining loans from traditional banks is difficult for SMEs – it is a long and complicated process and they are unlikely to get the money they need. need. Integrated lenders fix that.
The last briefing
Lending Briefing: The Alternative Data Powering SMB Lending and Major US Consumer Lenders
Historically, the small business sector has been difficult to insure through traditional methods, but its complexities are beginning to be understood through the power of alternative data.
Alternative data is information from various external resources, such as economic market indicators, demographic data, point-of-sale transactions, website and mobile device data, and even satellite imagery.
It has been one of the major driving factors behind the growing interest in SME lending. In 2020, the United States was the largest alternative finance market. And it seems to be working — 83% of lenders who use alternative data said they saw benefits like allowing them to assess light-file or no-file consumers, according to a recent TransUnion Poll of 317 lenders and credit providers.
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Just look at the charts
1. Banks and tech giants are losing skilled staff to fintechs
2. Apple opens up to open banking
Apple presents its “own” BNPL
Apple is launching a new feature for Apple Pay allowing users to pay for their purchases in four interest-free installments over time, called Apple Pay Later – this is Apple’s version of a BNPL service integrated directly into Apple Pay and ships with iOS 16 (The edge)
SEC closes in on new market efficiency rules
Last year Chief Gary Gensler instructed SEC staff to explore ways to make the stock market more efficient for retail investors and public companies – following the orders, the SEC is preparing to propose major changes on the stock market this fall (FT)
CoinDesk reboots DESK for this year’s Consensus
When Consensus 2022 kicks off on Thursday, behind the scenes a complex choreography of wallet identity verifications and payment exchanges will work as DESK, CoinDesk’s social token, circulates in a crowd expected to reach 15,000 attendees (CoinDesk)
Who has the best mobile banking app?
According to an analysis by Minna Technologies, a Sweden-based fintech, the provider with the most features has the best mobile banking app – qualifying JPMorgan Chase as the winner whose app has 24 features, Citi was second with 23 features , followed by Capital One and Bank of America with 22 of the 30 features (Forbes)
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