Fintech startups have chipped away at U.S. banks’ customer base for years in everything from wealth management to consumer lending and beyond. Now banks says they’re taking some market share back.
Traditional lenders are seeing the coronavirus pandemic weakening the upstarts that have been challenging them since the last financial crisis, with consumers seeking refuge with larger companies to cope with the outbreak’s economic toll.
Clients are gravitating toward the “biggest, stable institutions,” Morgan Stanley CEO James Gorman said at a conference Tuesday.
“There were some major outages with some of the new online robo players,” Gorman said at Morgan Stanley’s Virtual U.S. Financials Conference. “That doesn’t work. You can’t not access your account for several days.”
Earlier this year, online brokerage Robinhood Markets’ trading platform failed repeatedly as global stocks swung on news about the coronavirus. The glitches spurred some clients to leave the platform for competitors.
Bank of America Corp. customers have opened almost 300,000 new investment accounts on the company’s Merrill Edge platform, consumer and small business head Dean Athanasia said during the conference.
There’s a “flight to quality,” he said. “So we are attracting an awful lot of new clients.”
The client influx goes beyond investing and wealth management. Citizens Financial Group Inc. is gaining market share in mortgages as “a lot of the nonbanks are having some real challenges at the moment,” consumer banking head Brendan Coughlin said Tuesday.
As other states curb non-competes, the East Coast growth hub could soon become the most employer-friendly jurisdiction in the US.
Last summer, the two, David Gentile and Jeff Schneider, were found guilty of fraud in federal court in Brooklyn and received their sentencing today.
Early parenthood linked to lower fulfillment and fewer leadership roles, despite otherwise strong industry-wide support.
“It's the Golden Age, we're all blessed that this is where we are, what we do for a living, and that the sun is shining on the transition towards the RIA space," Creative Planning CIO Jamie Battmer said at a forum hosted by Goldman Sachs.
Strategists expect municipal bonds to best Treasuries during the four-month window from May until August, following a historical trend.
From direct lending to asset-based finance to commercial real estate debt.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
