Personal Finance News & Trends (9.30.20)
Bi-weekly updates on personal finance, fintech, US economy and more
US Economy
Patiently waiting
September unemployment figures will reveal whether the economy is really recovering
September is almost over and all eyes are on the unemployment stats.
While we don’t have a crystal ball, one indicator may give us a hint. Last Thursday, the US Labor Department reported that the number of Americans filing for unemployment benefits reached 870,000 — up 4,000 from the week before.
After the encouraging numbers we’ve seen in August, it will be interesting to see whether this positive momentum continues, or if we are expected to see a turn for the worse.
Personal Finance Updates
Pimp my home office
A growing demand for renovation loans, as work-from-home becomes the new normal
Work-from-home (WFH) arrangements have become a wide-spread solution for million of Americans struggling to work during lock downs and other COVID restrictions.
According to Housing Wire, this trend has boosted the demand for renovation loans, used to finance the building of home offices.
Less Credit for the Unions
Q2 figures are revealing the full impact of COVID-19 on credit unions’ performances
Data published by National Credit Union Administration shows that the pandemic has taken a toll on the industry. Here are the main trends:
- Deposits grew, while loans declined
- Fewer CUs saw a positive net income
- Half of federally insured CUs had less members
Now You See Me, Now You Don’t
Record spike in business-loan related frauds in August
Every recession is fertile soil for criminals and conmen, and the current one is no exception.
According to the US agency monitoring financial frauds FINCEN, banks and credit unions have seen a steady growth in business loan frauds for a third consecutive month. From 489 cases in June, to 1,044 in July and to 1,922 in August.
Corporate and Partners News
Point of Success
Point of sale lending industry continues its rapid growth
As we reported earlier, Point-of-Sale lending is becoming a lucrative business, and draws investments and acquisition offers from fintech giants like PayPal and Mastercard.
One of the industry leaders Affirm raised half a billion dollars this month, and is considering an IPO.
POS lender Sezzle has teamed with Ally Bank’s lending arm to launch a new retail market lending offering
New Kid on the Block
A new challenger bank One, founded by former PayPal CEO, targets middle class households
Ex PayPal CEO Bill Harris launched a new challenger bank this month, amidst the latest success of several incumbents, like Chime and Marcus. One aims to onboard clients from households with incomes between $44,000 to $72,000.
This week, the bank revealed a new all-in-one debit card, with current balance, savings and credit services.
Blending in
Digital mortgage lender Blend forays into consumer banking
Blend, a digital mortgage lender that was recently valued at $1.7 billion, is expanding into additional the fields of personal finance. The company announced last week that it will now offer personal loans, credit cards and specialty vehicle loans.
Bonus
Is the Big Apple Drying Out?
New York City’s economy is taking a big hit in the aftermath of the pandemic
Covid-19 is affecting US economy and pushed the country into a recession. But when it comes to New York City, this situation is much more evident.
Here are some recent figures on the city that never sleeps:
- Personal income tax revenue is expected to drop by $2 billion in 2020.
- Bankruptcies have surged 40% during the pandemic
- Broadway ticket sales for 2020 reach $300 million, vs $1.83 billion in 2018–2019 season.
- Leisure and hospitality sector has lost 44% of its jobs
