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Fintechs gaining personal loan market share; Goldman enters European ETF biz

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Fintechs gaining personal loan market share; Goldman enters European ETF biz

Digital lending firms have more than doubled their market share in the unsecured personal loan category in the last four years to 49.4%, up from 22.4% in 2015, according to a recent study by Experian PLC. The report points to the growing competition in personal lending between traditional financial institutions and fintechs and also reveals which generations are more inclined to secure personal loans with fintechs compared to traditional lenders.

Goldman Sachs Asset Management LP is entering the European exchange-traded fund market with its first listing on the London Stock Exchange today, the Financial Times reports. Over the next six months, the company plans to launch up to 10 ETFs in Europe and the move is expected to further intensify competition in the region's $890 billion ETF market, the FT notes.

Goldman Sachs Group Inc. approached other financial institutions to sell a part of its stake in the $3.1 billion credit line for SoftBank Group Corp.'s Vision Fund, sources told Bloomberg News. The investment bank is looking to sell the credit line in small parts as small as $50 million to cut its exposure to the facility, according to the report.

In Missouri, Central Banco. Inc. is acquiring Platte Valley Bank of Missouri in a deal expected to close by the fourth quarter.

Elsewhere in Florida, City National Bank of Florida will purchase Executive National Bank's parent company, Executive Banking Corp. Financial terms of the transaction were not released.

In a Bloomberg Television interview, Goldman Sachs President and COO John Waldron said the company is looking to put its troubles from the 1Malaysia Development Berhad scandal behind it and help the Malaysian people get their money back. Waldron did not comment on the prospect of a settlement with the U.S. Department of Justice over the 1MDB matter but noted that Goldman is not facing any restrictions on its U.S. business due to the case. The next hearing in Malaysia's case against Goldman is reportedly set for Sept. 30 in Kuala Lumpur.

Online lender Social Finance Inc. is set to start trading cryptocurrencies Bitcoin, Ethereum and Litecoin next week. The move is the startup's latest to go beyond its core business of student loan refinancing to make money and comes after other financial technology disruptors — like payments processor Square Inc. and mobile investment app Robinhood Markets Inc. — launched similar cryptocurrency services.

The Federal Reserve has made a "big move" by scrapping earlier planned rate hikes and shifting toward easier policy, but Fed officials could "do a little bit more" to cushion the economy against downside risks, Federal Reserve of St. Louis President James Bullard said in an interview with CNBC. Bullard, who will vote on the rate-setting Federal Open Market Committee this year, said he may support another 25-basis-point rate cut this year but that he did not want to prejudge any upcoming FOMC meetings.

The House of Representatives voted 321-103 to pass the Secure And Fair Enforcement Banking Act, or SAFE Banking Act of 2019, which exempts firms offering financial services to cannabis-related businesses exemption from a whole host of regulatory requirements. The bill now heads to the Senate.

Republican senators are concerned about the Federal Reserve's proposed real-time payments system, FedNow, expected to launch by 2024, American Banker reports. In his opening remarks at a hearing, Senate Banking Committee Chairman Mike Crapo, R-Idaho, said that some financial institutions had expressed doubts about, among other things, the Fed's analysis and process, the cost and amount of time needed to develop its own real-time payment system, and its prospects for achieving interoperability.

Rep. Maxine Waters, D-Calif., at a subcommittee hearing on financial stability, said that she will introduce more legislation to prevent regulators from further deregulating the financial services industry. Waters is determined to put measures in place to stop regulators from deconstructing the Dodd-Frank Act rules and states that the House Financial Services Committee will "do everything that we can to protect consumers."

The U.S. Securities and Exchange Commission entered a settled final judgment against former investment adviser firm Strong Investment Management and its owner, Joseph Bronson, over securities fraud charges for their involvement in a "cherry-picking" scheme.

The House Committee on Financial Services is scheduled to have a hearing on "Examining Legislation to Protect Consumers and Small Business Owners from Abusive Debt Collection Practices" at 10:00 a.m. today. Later at 2 p.m., it will discuss "The Future of Real-Time Payments."

In other parts of the world

Asia Pacific: Japan Exchange nears merger; Indian bank loans fall by 900B rupees

Europe: Deutsche raid; ex-Danske exec found dead; Credit Suisse spy drama deepens

Middle East & Africa: Netanyahu to form Israel's new government; Old Mutual-Moyo dispute continues

Now featured on S&P Global Market Intelligence

Delinquencies, charge-offs mixed at US card issuers in August: Average delinquencies among master trust portfolios at six large card issuers — American Express Co., Bank of America Corp., Capital One Financial Corp., Citigroup Inc., Discover Financial Services and JPMorgan Chase & Co. — fell 1 basis point month over month to 1.43% in August. Meanwhile, the average net charge-off ratio increased 8 basis points month over month to 2.30%.

Minnesota's community banks booked strong profits in Q2: Among Minnesota-based community banks and thrifts with less than $10 billion in assets, the median return on average equity was 11.44% in the second quarter, a 24-basis-point drop year over year but substantially higher than the 9.72% ROAE for Midwestern community banks and 9.59% for the U.S. as a whole.

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng jumped 0.37% to 26,041.93, and the Nikkei 225 rose 0.13% to 22,048.24.

In Europe, around midday, the FTSE 100 was up 0.99% to 7,362.13, and the Euronext 100 climbed 0.70% to 1,089.32.

On the macro front

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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