Purva Indurkar-Sule

Great news from the ESG Data Convergence Initiative for private credit firms - there will soon be benchmark data available (subject to enough PC firms submitting their data). Dasseti is an EDCI Data Partner which allows our clients to see benchmarks from within the Dasseti platform. #privatecredit #Dasseti #ESGbenchmarks #ESGmetrics

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Edith Wiseman talks about how banks team up with each other and why it's important. It's not just about meeting requirements, but also about how banks see your credit. Some banks are following the SBA's rules more closely now, which could be a big deal. At a conference in Texas, Wiseman introduced a term she made up - "Costly and Chaotic". This term fits well because right now, different lenders treat partnerships differently, costing a lot for franchise owners, the companies they work with, and the lenders. To tackle this issue, Wiseman and her team at FRANdata created a certification for franchises that want SBA loans. This certification lets franchises say they meet the standards without having to go through a long process. They're already talking with several banks about making this certification a must for future franchise loans. This move is a big step in making the loan process simpler, aiming to fix the complicated and messy parts, like Wiseman pointed out. Banks determine affiliation issues based on a variety of factors, including ownership, management, previous relationships with or among owners, and contractual relationships. If a bank determines that there is an affiliation between two entities, it can become an issue if it affects the entities' ability to independently operate, make decisions, or if it creates a conflict of interest. The term "Costly and Chaotic" refers to the potential complications and expenses that can arise when lenders handle affiliation issues inconsistently or without clear guidelines. This can be particularly problematic for franchises, which often involve complex relationships between franchisors, franchisees, and lenders. To address this issue, FRANdata has developed a certification of franchise eligibility for SBA lending. This certification allows franchisors to self-certify that they comply with all eligibility rules, which are listed in the document. This can simplify the process for lenders and reduce the potential for costly and chaotic situations. Currently, FRANdata is working with a number of lenders who are considering requiring this certification for lending to franchises in the future. This could help standardize the process and reduce the potential for affiliation issues to arise. With Edith Wiseman and FRANdata #BankAffiliation #SBALending #FranchiseEligibility

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Have CFSB's Sprawling Fintech Partnerships Caught Up With The Tiny New York Bank? CFSB leaned in to partnering with fintechs and banking-as-a-service, even as enforcements actions against other banks began to pile up. Now, there's accumulating evidence the one-branch Woodhaven, New York, bank is de-risking. Wise, which shifted some business to CFSB after its relationship with troubled Evolve Bank & Trust abruptly ended last October, previously used CFSB to issue debit cards but has ceased issuing any cards in the US. Wise shifted to Column to issue USD routing and account credentials for personal accounts for users residing in the US, but, at the moment, cannot issue any credentials for businesses, regardless of location, and personal accounts outside of the US. Revolut, which was planning a migration to CFSB after its last bank partner, Metropolitan Commercial Bank, got a consent order abandoned the plan and instead is moving to Lead. And CFSB itself filed but abruptly withdrew an application to open a branch in Delaware, which would allow the bank to support lending programs without the constraint of New York's 16% usury cap. More on this in this week's Fintech Business Weekly through the link in the comments below.

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AI is almost as ubiquitous as "swing state" in conversation. But are companies' legal teams actually investing in AI in 2024? Burford Capital asked this question in recent research and we share highlights here >>

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Measurement is key to maximize (and prove) marketing impact. Kroger shares how they hold traditional reach mediums like CTV accountable to actual conversion outcomes. Explore more from LiveRamp's #RampUp24 here: https://lnkd.in/gyDYmY9f

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Alex Johnson wrote a great article that shows the importance of Loan Servicing & getting it right. At LoanPro we have three commitments 1 - Customer Delight 2 - Becoming Journey 3 - Sustainable Growth These are well aligned with the "predictions" outlined in this article. #partofthesolution #loanpro

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Landing in junk territory makes it harder and more expensive to access capital, an added burden as high interest rates have pushed the cost of debt up. Delta Air Lines Chief Financial Officer Dan Janki gets it right -“right at the top” of the priorities’ list. Do you think you need an ad-hoc committee to oversee this issue from board oversight standpoint? Few ideas come to my mind. What else you would like to add? Enhance Investor Relations: Maintain transparent communication with investors and stakeholders about the impact of increased credit costs and the company's strategies to mitigate these effects. Diversify Funding Sources: Reduce reliance on a single source of funding by diversifying across different lenders or types of financing, which can mitigate risks associated with fluctuations in credit costs. Cost Management: Implement rigorous cost-cutting measures and efficiency improvements to enhance profitability and free up cash flow for debt service. #CEO #KSgems #CFO #FinancialOversight #BoardOversight #CIO #CTO #CISO #EBITDA #CashFlow Nitin Gaur LY Desai https://lnkd.in/e2fV9yrM

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Thank you, Anthropic CEO Dario Amodei for this fascinating, insider's view of the potential for a future catalyzed by "powerful AI" across multiple high-impact vectors including: 1. Biology and health 2. Neuroscience and mind 3. Economic development and poverty 4. Peace and governance 5. Work and meaning Each section builds on upon the preceding one, but I am particularly interested in AI's evolving role in reshaping work and meaning. As we embrace automation, it’s clear that AI won't just transform workflows—it will reshape society, challenging us to rethink what gives our lives purpose (work included). And how we're all going to afford to live. The essay touches upon exploring and finding greater meaning in the near-term by focusing our efforts on those things that machines can't (yet easily) replicate: creativity, empathy, complex problem-solving, and physical skills. These are close to humanity and our "true" nature. “AI will change the nature of work, but it’s up to us to ensure that meaning and purpose remain central to what we do.” We're standing at the precipice of something entirely "rich and strange." Times Amodei believes may be just around the corner (2030 - 2040).

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Delving into the murky waters of fintech and banking partnerships... the recent post from Fintech Business Weekly struck a chord with me. They unpacked the FDIC's latest consumer bulletin, which aims to untangle the confusion surrounding FDIC-insured banks and nonbank entities. But here's the kicker: in today's digital age, where fintechs and banks often blur into one seamless product and user interface, how is the average person supposed to tell the difference? This piece got me thinking: is the distinction from a consumer's standpoint between banks and fintechs even relevant anymore? An expanded consumer protection framework should consider this consumer-first point of view. #fdic #fintech https://lnkd.in/eJYEEhYD

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A clear data showing that upto recession, the employment is good, but the moment recession kicks in the unemployment rises. With US unemployment at 53 years low, it's an indicator that recession is round the corner. Economic cycles are inevitable. The longer you try to avoid a recession, the harder it will be.

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With the first US Presidential debate behind us and recent headline-grabbing events, this past week has been as gripping as any hit TV series. The upcoming months promise a rollercoaster ride, not just for the US but for the world, as we witness a challenger, accusations, gaffes, and questions about potential leadership changes. While the 2024 US presidential elections will undoubtedly be a finale-worthy event, their impact on the economy and geopolitics - two deeply intertwined aspects of our modern world - cannot be overstated. The outcome of these elections is expected to significantly influence the US economy and global financial markets, depending on which party emerges victorious. A Democratic win, regardless of the specific candidate, would likely prioritize issues such as climate change, healthcare, and social welfare programs. This could lead to increased government spending and higher taxes on corporations and high-income individuals. While this approach might boost growth in sectors like renewable energy, it could also temper business investment and consumer confidence in the short term. The Federal Reserve's policy might maintain its current course, focusing on inflation targeting and gradually managing down "higher-for-longer" rates. On the other hand, a Republican victory would probably continue business-friendly policies, including tax cuts and deregulation. This could initially boost corporate profits and stock prices. However, there's a risk of escalating trade tensions and a potential return to "America First" policies, which could negatively impact global trade and supply chains, particularly for emerging markets. The Fed could also face pressure to accelerate policy changes. For emerging markets like India, the US election results could have far-reaching consequences. A Democratic administration might adopt a more collaborative approach to international affairs, potentially benefiting countries looking to strengthen diplomatic and economic ties with the US. Conversely, a Republican win could signal a return to a more confrontational foreign policy, possibly disrupting trade flows and capital markets in developing nations. Such policy shifts could impact ongoing supply-chain transitions and industries like technology, renewable energy, and electric vehicles. Regardless of the outcome, the #2024USPresidentialElection is a major global event, politically and economically. All investors, especially in sectors such as energy, technology, healthcare, and finance will be closely monitoring shifts in political narratives and the election landscape. Despite its broad and significant impact, this event promises to be a spectacle unlike any other, captivating audiences worldwide with its far-reaching implications for global economics and politics.

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Back from Chicago and off this morning--thanks to "Teams"--to India to discuss AI leadership, in Bangalore. Good times. What a world. Here are today's tea leaves, with sources. Connect the dots, and what do you see coming from the future, back? 1. China’s 618 online shopping festival saw sales fall Y/Y for the first time, the latest indication of cooling consumer demand and price discounting. FT 2. Ilya Sutskever, OpenAI’s co-founder and former chief scientist, announced his new venture: Safe Superintelligence Inc. Sutskever’s new AI company will value safety above all, with development of “a safe superintelligence” as its lone goal. The Verge   3. Prime Minister Justin Trudeau’s government is preparing potential new tariffs on Chinese-made electric vehicles to align Canada with actions taken by the US and European Union. BBG   4) Nice one, Jeff--Amazon is replacing 95% of its plastic packaging air pillows with paper filler made from 100% recycled material in North America. The swap will eliminate ~15B plastic pillows a year. CNBC   5. Across the Pond...UK retail sales for May come in solidly above expectations, rising 2.9% M/M (vs. the Street +1.8%), and Apr was revised higher. WSJ   6. Trump sees a surge in campaign inflows as his recent conviction helped to fuel donations. WaPo   7. Chicago Fed President Austan Goolsbee said policy makers will be able to cut rates if inflation continues to cool as it did last month. But Richmond Fed boss Thomas Barkin said he needs further clarity. BBG   8. McDonald’s is introducing a $5 value meal in response to customer complaints that its menu had grown too expensive. It’s not alone: Burger King, Wendy’s, and Starbucks are all launching new deals as well. BBG 9. The AI arms race continues: Anthropic is launching its newest model, called Claude 3.5 Sonnet, which it says can equal or better OpenAI’s GPT-4o or Google’s Gemini across a wide variety of tasks. The new model is already available to Claude users on the web and on iOS, and Anthropic is making it available to developers as well. The Verge 10, Spirit is nearing a deal to be purchased by Boeing after Airbus-related work issues were resolved, and a formal announcement could arrive within days or weeks. RTRS

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Curious about how we spot the most unobvious winners at seed? It’s simple - we invest in those we’d never want to bet against. In 2017 slice was a scrappy fintech financing smartphones for college students. Today, it’s set to become India’s first true digital bank, catering to the needs of India’s Gen Z. With this merger, Slice is poised to simplify digital banking for a billion Indians, establishing a new gold standard of customer-focused banking.

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How are you supposed to get a clear understanding of your customer when the average US household has at least 21 devices?! If you’re tired of feeling like you’re just throwing darts in the dark, it’s time to get serious about data activation. LiveRamp's eBook, "LiveRamp's Guide to Data Activation" has everything you need to stop guessing and start knowing. https://lnkd.in/gaZHD8TW

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New: 🎧 Ramp has become known for its expense cards that "just work." While the space is competitive, none have grown as quickly as Ramp has lately. I put that down to obsession—an obsession with the details driven by North Star metrics like hours saved per user and dollars saved per customer. But how does that manifest as a product? As the old saying goes, it takes a lot of effort to make it look effortless. Never want to add a memo to a monthly expense again? Just hit the "make recurring" button. There is so much to learn from how Ramp executes, yet such a challenging road in front of them. Today, Ramp is so much more than an expense card. It's one payment and procurement platform. Yet it has taken a downturn. It has famously not charged for key bits of the product, and it is in the single most competitive spot in Fintech, with companies like Mercury, Brex, and Arc snapping at its heels. This wide-ranging conversation starts with Eric and Ramp, but I also wanted to discuss Fintech as an industry and whether it is here to stay in the post-SVB world. Or is it all just waiting to be acquired by JP Morgan. Find it here: https://lnkd.in/eAeeza2X Or wherever you get your podcasts. #fintech #podcast #payments #banking

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Brex vs Ramp is an interesting story to watch. Their underlying business models are still extremely reliant on interchange, which is still one of the highest margin gross revenue stream in payments. There is gradual downward pressure on interchange rates (way too slowly imho), so it's interesting to see Ramp's focus on AP Automation and subscription fee based revenue. https://lnkd.in/estju5hz?

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Great article on the history and evolution of Capital One...

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In 2023, just five legacy providers processed about 80% of US payments volume (~$9T). But that’s changing… Here’s what JPMorgan’s said about the potential of “full-stack offerings” like Finix, in its annual Payments Market Share Handbook (May 2024): “While the majority of payment volume in the United States is processed by a few large, legacy entities, newer entrants have started becoming processors themselves. Namely, Adyen, Finix and Stripe have all become licensed processors with direct integrations into the major card networks in the United States. While doing so provides a slight economic advantage (in-housing their processing costs), we see the core benefit as having a single, unified technology stack that can implement new payment methods and products more quickly and reliably.” That’s exactly right! Finix became a payment processor to move faster and build better tools for our customers. Here’s a quick example: Some legacy providers require merchants to integrate into (at least) two separate environments for online and in-person payments. Not only does that require more upfront engineering effort, but on an ongoing basis, finance teams must manage and reconcile two separate settlement files. Merchants and platforms deserve better. With Finix's, our customers get simplicity (e.g., a single settlement file) AND advanced functionality (e.g., custom fee profiles, gross or net settlement schemes, etc.) through a single integration...the way the payment gods intended.

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