The hottest Banking Substack posts right now

And their main takeaways
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Top Finance Topics

Pippa Passes: SVB, Alien Motherships, Mathematical Constants, New Physics, Manhattan Project v2, CBDC, and Indra’s Net

Dr. Pippa's Pen & Podcast • 29 implied HN points • 12 Mar 23
💼 Business Start-ups Funding Banking Venture Capital Entrepreneurship
  1. The financial world has issues with captive models, where banks raise money for clients and hold it, leading to potential risks like re-hypothecation.
  2. Start-ups, especially in Silicon Valley, faced challenges with raising capital and high failure rates, raising questions about the funding and support system for these businesses.
  3. There is a need to better understand the difference between having a brilliant product and building a successful business, as many founders struggle to make that transition.

The State of India's Banking Sector

Turnaround • 59 implied HN points • 04 Jan 21
💼 Business Banking Regulation Technology Innovation Public Sector
  1. In 2020, more deposits went to private banks in India than Public Sector Banks for the first time.
  2. The bad loan crisis in Indian banks was tackled through measures like Asset Quality Review and Insolvency and Bankruptcy Code.
  3. Indian public sector banks need to focus on technology and adapt to changing consumer demands to compete with private banks in terms of market share.

Issue #94: Visa Unveils A Web3 Loyalty Program, HSBC Launches A Forex App Called Zing, And Consumer Advocates Take Aim At The Starbucks App

Fintech Radar • 14 implied HN points • 10 Jan 24
💰 Finance Fintech Banking Cryptocurrency Investment Startups
  1. Visa introduces a Web3 loyalty program to reward customer interactions.
  2. HSBC launches a forex app named Zing to compete with fintechs like Revolut and Wise.
  3. Consumer advocates file complaint against Starbucks app, alleging deceptive practices in trapping customers to spend more.
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New York State of Mind

Net Interest • 13 implied HN points • 02 Feb 24
💰 Finance Banking Regulation Market Analysis Asset management
  1. The Federal Reserve's oversight of banks is divided by size, with different divisions supervising banks of varying asset thresholds.
  2. Regulators reacted swiftly to New York Community Bancorp surpassing the $100 billion threshold by implementing capital preservation measures.
  3. New York Community Bancorp's stock fell significantly after taking actions to strengthen its balance sheet, raising concerns and prompting discussions about reviving a retired series on banking crises.

Contagion

Net Interest • 30 implied HN points • 17 Mar 23
💰 Finance Banking Market Analysis Regulation
  1. When a bank fails, it affects the entire industry differently than other types of companies.
  2. Contagion in the financial sector can spread through customer confidence more than asset or origin similarities.
  3. Market reactions and indicators can be key in predicting and reacting to potential banking crises.

The Parable of Angelo Mozilo

Net Interest • 22 implied HN points • 21 Jul 23
💰 Finance Banking Mortgages Financial Crisis Insider trading
  1. Angelo Mozilo was a key figure in the mortgage industry, starting Countrywide Financial and seeing its rise and fall.
  2. Countrywide's shift towards subprime lending led to risky practices, with Mozilo's ambition for growth overriding concerns about risk.
  3. Despite the financial crisis fallout, Mozilo personally profited from insider trading but faced legal repercussions, highlighting the recurring issue of trading risk for growth in financial services.

Higher bank capital requirements work

Klement on Investing • 1 implied HN point • 20 Feb 25
💰 Finance Banking Regulations Capital Economic Growth Risk management
  1. Banks now have to keep more money in reserve, which helps prevent risky behavior and protects the economy. This rule came after the 2008 financial crisis.
  2. Even though higher capital requirements may lower banks' profits, they do not slow down overall economic growth. The economy remains stable without large drops in growth.
  3. Overall, increased capital requirements reduce the chances of serious economic downturns, which is a big win for financial stability. It seems like this regulation is working well.

October Mixed Bag

Net Interest • 3 implied HN points • 25 Oct 24
💰 Finance Banking Investments Markets Economic Policy Financial Services
  1. Compensation structures in firms can impact employee performance and morale. It's essential to find the right balance to keep people motivated.
  2. Understanding net interest income is important for assessing financial health. It reflects how well a company manages its income from loans and investments.
  3. Mixing insights from different financial areas can provide a broader perspective. This can help in making smarter decisions in finance and investments.

Capital One: Buffett’s Latest Banking Pick

Net Interest • 23 implied HN points • 19 May 23
💼 Business Finance Banking Investing Economics Marketing
  1. Warren Buffett bought $1 billion worth of Capital One stock in the first quarter of this year.
  2. Capital One started as a credit card business, then expanded to become a full-fledged bank through innovative pricing strategies and aggressive marketing.
  3. Capital One's performance depends on various factors, including the unemployment rate, which impacts charge-offs on their credit card portfolio.

Baskerville Jiu Jitsu

Malt Liquidity • 6 implied HN points • 27 Feb 24
💰 Finance Investing Banking Cryptocurrency Economics Books
  1. Showing profit is important for selling a company, while revenue projections affect investor interest.
  2. Exiting Reddit IPO may not yield good returns unless the business is proven profitable.
  3. Banking and financial systems have complexities that are not widely understood, and liquidity in web3 must be carefully designed with practical use cases.

Issue #138: Robinhood Acquires TradePMR, Revolut’s ATM Play, And UPI Continues To Go Global

Fintech Radar • 2 implied HN points • 28 Nov 24
💰 Finance Fintech Investing Banking Payments Startups
  1. Robinhood has bought TradePMR to expand its services for financial advisers, showing it's serious about growing in the wealth management area. This move is part of a wider trend where fintech companies are trying to offer more services to their users.
  2. Revolut is planning to introduce an AI assistant, branded ATMs, and mortgage options by 2025. These additions reflect their aggressive approach to compete in the traditional finance space beyond just banking.
  3. Google Pay is now incorporating buy now, pay later options from Afterpay and Klarna. This shows that big tech companies want to partner with existing services instead of directly competing in the financial sector.

The Last Challenger

Net Interest • 7 implied HN points • 15 Mar 24
💼 Business Finance Competition Banking Mergers Market
  1. In the aftermath of the 2008 financial crisis, the UK government allowed a significant bank merger to ensure financial stability despite concerns about competition.
  2. The idea of promoting competition through challenger banks was embraced but has struggled to reduce the dominance of the Big Four banks in the UK.
  3. Despite efforts to increase competition, mergers between existing players, like Virgin Money and Nationwide, have become a significant strategy to challenge the Big Four banks.

Issue #100 🎉 🥳 : Revolut Expands Into Offering eSIMs, FIS Partners To Offer A2A Payments, And Temenos Gets Hindenburged

Fintech Radar • 6 implied HN points • 22 Feb 24
💰 Finance Fintech Payments Banking Startups Investment
  1. Revolut ventures into telecom by introducing phone plans in the UK with eSIMs, aligning with its all-encompassing super app vision.
  2. FIS partners with Banked to offer pay-by-bank solutions, a move towards A2A payments that could challenge traditional card schemes.
  3. Temenos faces allegations from Hindenburg Research, highlighting the challenges in large corporate tech transformations and the need to address accusations.

Issue #86: Musk Wants X To Replace Your Bank, JPM Coin Is Now Handling $1b In Daily Transactions Volume And Catch Relaunches

Fintech Radar • 8 implied HN points • 31 Oct 23
💰 Finance Fintech Investment Banking Payments Insurtech
  1. Elon Musk plans to turn Twitter into a financial app called X by 2024.
  2. Monzo is in talks to sell a stake in the company worth over £300m to prepare for an IPO.
  3. JPMorgan's JPM Coin handles $1 billion in daily transactions, showing slow but significant growth in blockchain-based financial infrastructure.

Issue #76: The UK Wants To Drop £1b On Late Stage Fintech Startups, Nubank Posts Record Revenue And BitGo Secures The Bag

Fintech Radar • 8 implied HN points • 22 Aug 23
💰 Finance Fintech Investments Banking Regulation Crypto
  1. The UK is investing heavily in late-stage fintech startups with a £1 billion fund.
  2. Investors are cautious about valuing FinTech companies due to global economic concerns.
  3. Nubank has achieved record revenue growth and increased customer base, while BitGo has secured a significant funding and valuation.

Issue #82: Apple Explores Open Banking In The UK, Ant Group Launches A Pan-Asian Mobile Wallet, And Nova Credit & HSBC Collaborate on Cross-Border Credit Sharing

Fintech Radar • 6 implied HN points • 02 Oct 23
💰 Finance Fintech Banking Payments Investments Regulation
  1. Apple introduces feature allowing UK users to view bank account balance via Apple Wallet using Open Banking APIs.
  2. Ant Group expands payment ecosystem for Asian e-wallets through Alipay+ Program, enabling seamless mobile payments.
  3. Nova Credit partners with HSBC UK to offer credit card for immigrants, leveraging international credit history for new customers.

Silicon Valley Bank Collapse – How did it happen, what will follow?

Bas' Take on Tech • 2 HN points • 14 Mar 23
💰 Finance Banking Economy Cryptocurrency Stock Market Regulation
  1. Silicon Valley Bank, the 16th largest bank in the US, collapsed due to a mismatch in assets and liabilities.
  2. The collapse led to an emergency response from the FDIC, the Fed, and other financial institutions.
  3. The aftermath includes uncertainty in the job market, impact on other banks, and potential liquidity crises in cryptocurrency markets.

Russian Banking's Birth by Mutiny

Vivid Leaves • 4 implied HN points • 26 Jul 23
💼 Business Banking Economics Transition Infrastructure Monetary Policy
  1. The collapse of the Soviet banking system birthed the modern Russian banking system through a series of rebellions and creation of new banks.
  2. The Soviet economy transitioned from a market vacuum to a market economy due to cooperative entities and the birth of private commercial banks.
  3. Formation of the Central Bank of Russia and rapid bank privatization led to a banking system with significant infrastructure challenges and financial instability.

#156 - Silicon Valley Bank: An Autopsy

Below the Line from Kevin LaBuz • 7 implied HN points • 26 Mar 23
💰 Finance Banking Economy Investing Risk management Deposits
  1. Silicon Valley Bank grew rapidly and reached the 16th largest bank in the US, but struggled with managing its growth.
  2. Banks make money by taking deposits and making loans, operating with fractional reserves and managing a balance between liquidity and lending.
  3. SVB's downfall was fueled by a combination of poor decisions, rising interest rates, and a concentrated deposit base that led to a rapid collapse.

Unity Bank Fraud: An Unfolding Story Of Nigerian Corporate Malfeasance

westafricaweekly • 3 implied HN points • 02 Dec 23
💼 Business Fraud Banking Regulation Corporate Governance Financial system
  1. The former chairman of Unity Bank in Nigeria orchestrated a massive financial scandal involving billions of naira in non-performing loans and a dubious loan portfolio sale.
  2. The scandal involved regulatory malpractice, compliance fraud, and the misuse of bank funds by insiders, leading to severe financial harm to the bank and potential systemic risks.
  3. Despite clear regulatory violations, the bank's management, auditors, and regulators failed to take appropriate action, highlighting a need for thorough investigations and accountability measures.

The Importance of Small & Medium-Sized Banks

Spilled Coffee • 4 implied HN points • 22 Mar 23
💰 Finance Banking Lending
  1. Small and medium-sized banks are crucial for the financial infrastructure in many U.S. communities.
  2. These banks account for a significant portion of lending in various sectors like commercial, residential, and consumer.
  3. Building relationships with local banks can have a significant impact on both businesses and individuals.

Breaking: Lineage Hit With FDIC Consent Order

Fintech Business Weekly • 2 HN points • 23 Feb 24
💰 Finance Banking Regulation Fintech Risk management Compliance
  1. Lineage Bank faced regulatory issues with the FDIC due to oversight failures in its banking-as-a-service partnerships.
  2. The consent order from the FDIC requires Lineage Bank to make significant changes in its management, risk assessment, and operational practices.
  3. The impact of Lineage Bank's BaaS wind down and the FDIC order on Synapse, Synctera, and their fintech clients is not yet clear.

Issue #99: Entrust Wants To Buy Onfido, MEPs Move To Make Euro Transactions Arrive In 10 Seconds, And JPMorgan Plans To Open 500 Branches

Fintech Radar • 2 implied HN points • 15 Feb 24
💰 Finance Fintech Banking Investment Regulation Startups
  1. The acquisition of Onfido by Entrust indicates the evolving landscape of KYC beyond financial services, with the expansion of AI/ML-based verification technology to various sectors.
  2. JPMorgan's decision to open 500 new branches seems counterintuitive in a digital age; however, it presents a unique opportunity to invest in physical presence amidst industry trends of branch closures.
  3. MEPs implementing rules for Euro transfers to arrive within 10 seconds will likely stir industry activity to meet this requirement and may impact how charges are structured for instant transactions.