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Showing posts with the label Payday lending

Low-Income Lending and Investing Opportunities a Priority For Black and Community Banks

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An article on BTCManager.com, reproduced in part below, noted several key features of HR41.

"On January 3rd, 2019, Bill HR 41, titled “RESCUE Act for Black and Community Banks” was released. It’s stated purpose is 'To provide regulatory relief for Black and community banks, to codify the Minority Bank Deposit Program, and for other purposes.'

The Minority Bank Deposit Program (MBDP) is a voluntary program that encourages credit unions, as well as female and minority-owned banks to become depositories and financial agents for low-income communities. The initiative was created by the US Department of Treasury and is meant to make banking services more accessible to the most underserved communities. 

Although not stated explicitly, 'codifying' the MBDP program could imply the use of a blockchain ledger and smart contract system to record and deploy short-term loans based on a predefined set of rules written in code. Such a system would be a huge boost to commu…

Article on Community Lending from today's American Banker

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Fintech for Underbanked: The Next M&A Hot Spot?byRobert Barba NOV 7, 2013 5:06pm ET

Think the onset of consumer protections laws stymied M&A for companies who serve the underbanked? You're wrong.
Between July 2012 and June 2013, there were 85 investment banking transactions involving companies in the financial technology and specialty lending realms that focus on consumers with low-to-moderate incomes, according to a study released Wednesday. The authors are the Center for Financial Services Innovation and Core Innovation Capital, a $50 million venture capital fund that specializes in the underbanked market.

The data show the acquisitions, initial public offerings and equity investments had a combined value of $5.2 billion in capital.
The study, which was sponsored by Morgan Stanley, was the authors' first on this topic, so it is unclear if the activity in the year leading up to June 30 rose or fell from past years. That kind of assessment is for next year — this year&…

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