The number of women-owned businesses that applied for funding in 2018 increased by 13 percent, although their funding amounts went down, according to an annual study of women-owned companies by Biz2Credit, an online credit marketplace.
The study, which included 30,000 companies nationwide in over 20 industries — including retail, healthcare, hospitality, construction and professional services, among others — revealed that the average loan amount for women-owned companies was $48,341 last year. The most common type of funding was working capital for business expansion.
OneSpan, a global providers of identification authentication software, e-signatures and secure transactions, recently released its The Future of Adaptive Authentication in the Financial Industry report. Based on a broad survey of financial institutions, the report reveals the sector’s challenges in authentication practices and strategies, and highlights the growing tension between improving security, reducing fraud and enhancing the digital customer experience.
By Dennis Zimmerman Jr.
While decision making at the community bank level relies on management’s experience, reason and careful deliberation, analysis derived from the use of financial models play an important role in proper decisioning. Models turn information into analysis, which then is used to make better decisions. While financial institutions use models in a wide range of applications, today’s focus is on the asset/liability simulation model — the tool that best measures the possible adverse effects on earnings and equity precipitated by movements in interest rates. Recent shifts in the Treasury yield curve have elevated the importance of an effective asset/ liability management program. As such, management should consider, not just as best practices but as regulatory expectations, incorporating the following items into this year’s deliverables:
Private student loans could benefit students and banks.
By Alaina Webster
There’s a reason the current student debt conundrum in the U.S. is often referred to as a “crisis.” According to data from the Washington, D.C.-based Consumer Bankers Association, student loan debt has risen from $600 billion in 2008 to $1.5 trillion in 2018. Moreover, the New York Fed found that one in five borrowers in repayment is seriously delinquent or has defaulted on their student loans, and a recent chart from Raddon Research Insights shows that millennials who are shouldering student loan debt have higher levels of credit card and consumer loan debt but lower levels of real estate loan principle and lower deposit balances.
Can regional banks compete … and win?
By Ashwin Gurnani
Eastern Front: Rising Rate Environment
In December 2018, besides raising the federal funds target rate, the Federal Reserve’s Federal Open Market Committee modified its guidance on rate increases in 2019, reducing the guidance from three to four rate increases down to two. The minutes of the meeting also included language on how the committee would be patient with future rate increases.