October 2023 | 6 Headlines in Alternative Finance
6 Important News in 1 Reading
Bite sized AltFin Updates
Discussion of 'Buy Now, Pay Later' (BNPL) options and retail credit cards. Get insights how to adapt your strategies, developing new products, and remaining competitive in the rapidly-evolving alternative financing landscape.
NET Credit Union Collaborates with Bankjoy for Digital Onboarding Solution'. A trend which alternative lenders should carefully monitor in order to remain competitive.
The launch of FedNow, a new instant payments platform by the U.S Federal Reserve, unveils new risks within the financial sector. An urgent call to credit unions to invest in payment technology and enhance fraud prevention measures due to the potential risks introduced by the use of the new FedNow instant payments platform.
The indictment of George Santos for misusing the credit card information of donors to his non-profit organization, ArtAngels. Whether Santos is guilty or not, this case certainly brings into focus the pressing need for stringent anti-fraud measures, robust ethical guidelines, and rigorous auditing systems in the alternative financing industry.
Credit Card Users Pay $130 Billion in Fees and Interest. This is an opportunity to show how Alternative Finance products can offer more affordable, user-friendly alternatives to traditional credit.
Our news this month reflects the alternative assets industry's ability to respond to change and evolve to meet new challenges.
Our Featured Story:
The strong performance of credit card companies in Q3 2021 has been largely due to increased consumer spending influenced by the pandemic. Additionally, credit card companies have adapted to these changes in consumer behavior to optimize their performance.
Whenever credit card companies record strong financial performance, they are likely to invest more in creating innovative products and offers to attract more consumers. This directly influences the fintech industry and triggers creativity, consequently providing customers stronger and faster financial services. For instance, American Express, after experiencing a profit surge in 2019, invested in innovations like blockchain tools to streamline B2B cross-border transactions.
The performance of credit card companies greatly influences the business of alternative lenders. They are important economic indicators and potent competitors in the lending industry. When they succeed, they may invest in technological innovations that directly compete with alternative lenders. On the other hand, their high rates and impact on credit scores also make alternative lending an attractive choice for many. Therefore, alternative lenders need to stay informed about the trends within credit card companies to strategically position their own services.