Sznurki http://www.sznurki.net/ Sat, 12 Jun 2021 05:43:38 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://www.sznurki.net/wp-content/uploads/2021/04/sznurki-icon-150x150.png Sznurki http://www.sznurki.net/ 32 32 Lydia supports Cashbee to add financial savings accounts https://www.sznurki.net/lydia-supports-cashbee-to-add-financial-savings-accounts/ https://www.sznurki.net/lydia-supports-cashbee-to-add-financial-savings-accounts/#respond Sat, 12 Jun 2021 00:38:35 +0000 https://www.sznurki.net/lydia-supports-cashbee-to-add-financial-savings-accounts/

French startup Lydia is best known as the dominant app for peer-to-peer funds. However, the company has included additional options, resembling a debit card, aggregation of accounts, donations, prize pools and more. This week, the company is including savings accounts thanks to a partnership with French fintech startup Cashbee.

For those unfamiliar with Cashbee, the company allows you to open financial savings accounts through a mobile app. After connecting your checking account to Cashbee, you can optionally switch between your checking account and a financial savings account.

Currently, Cashbee is partnering with My Money Bank for financial savings accounts. Cashbee does not keep your money, it simply acts as a central person between your checking account and My Cash. With these financial savings accounts, customers can count on an interest rate of 0.6% after an entry fee of 2% for several months.

Lydia mainly gives the same sentences and situations with a number of variations. Instead of 2% interest income for the first three months, Lydia customers only earn more interest in the first two months.

The other big difference is that Lydia asks you to put at least € 1,000 into your savings account every time you open it. For those who submit to the Cashbee application, you only need to put in € 10 or more. However, customers can do whatever they need after that to put money aside and withdraw money from the savings account.

However, the fact that Cashbee is seamlessly integrated with Lydia is fascinating. This will reveal Cashbee to many more customers, as Lydia has over 5 million customers. It’s also a vital function if Lydia is to become a great financial app.

This financial savings function competes with the Livret A, essentially the most widely used financial savings account in France. Anyone can open a Livret A at a retail financial institution. You benefit from an interest rate of 0.5% web taxes. On paper, 0.6% is better than 0.5%. However, Cashbee’s financial savings accounts are not a tax web.

For those who are students and who do not pay taxes, it is much more. However, many people pay 30% tax on accrued activities, which means you end up with 0.42% income in tax activities with a Cashbee account.

But surely it’s laborious to beat the simplicity of Lydia’s response here. By way of illustration, it can save you up to € 1,000,000 on your financial savings account while the Livret A is prohibited at € 22,950. In other words, if you’re already using Lydia to send, buy, and spend money, you might want to take a look at these savings accounts.

Lydia Raises Another $ 86 Million To Build Fantastic European Currency App

Fintech startups increasingly specialize in profitability


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One of the biggest paradoxes you’ll ever see in mortgage rates https://www.sznurki.net/one-of-the-biggest-paradoxes-youll-ever-see-in-mortgage-rates/ https://www.sznurki.net/one-of-the-biggest-paradoxes-youll-ever-see-in-mortgage-rates/#respond Fri, 11 Jun 2021 22:25:12 +0000 https://www.sznurki.net/one-of-the-biggest-paradoxes-youll-ever-see-in-mortgage-rates/

No, it’s not one of those headlines that promise to share “something weird” or proclaim “you’ll never believe what happened next”. Well, actually some people might find it hard to believe this one.

In order to keep the time of those who are already up to date with this week’s economic data and interest rate movements, we are going to talk about the paradoxical drop in rates despite decades high inflation. Everyone, read on!

Inflation is one of the Deadly enemies interest rates. Here’s why:

  1. Rates are determined by the amount of money investors are willing to pay for bonds / loans. Basically, investors give you a large amount of money and you make payments (with interest) over time.
  2. Inflation makes dollars less valuable (or, in other words, it makes “stuff” cost more).
  3. But the value of your monthly payment stream never increases because it’s been agreed upon from the start.
  4. As such, inflation makes your monthly payments less valuable over time (or less able to buy “stuff”).
  5. Therefore, if the investor sees inflation on the rise, they could raise rates today in order to squeeze a similar value out of your payment stream.

To take this example to the extreme, let’s say I lend you $ 100 and you make 11 installments of $ 10. I take each $ 10 payment and treat myself to the 3 taco combo at the taco truck once a month. Now let’s say that due to inflation, the taco truck raises prices to $ 15. I have 2 choices. I can either get the 2 taco combo (and who wants to do that ?!) or I can increase the interest rate on your loan so that the new monthly payment is $ 15.

While he may or may not be driven by an insatiable thirst for affordable tacos, he is exactly this dynamic which explains the long-standing correlation between inflation and rates. Of course, inflation is not the only concern for rates, but it is always a consideration. The following chart shows 10-year Treasury yields (the most popular benchmark for long-term interest rates) and basic consumer prices (the most popular measure of consumer-level inflation. ).

In fact, the most recent data is missing in the graph above. This week brought a new installment of the monthly Consumer Price Index (CPI). Much like last month’s report, it was a shock, both in terms of the height of the number in outright terms. and compared to expectations.

20210611 nl1.png

You would expect interest rates to pay at least some kind of pay attention to such things, and you would be right! But the attention was both minimal and temporary. The following chart shows how 10-year Treasury yields have traded moment-to-moment this week. In fact, they climbed higher as soon as the inflation data was released, but it didn’t last very long.

20210611 nl3.png

What is happening with the paradoxical reaction? While the average headline of the news suggested that this inflation “was not enough” to derail the Fed’s low rate policies, the real motivation is much more esoteric. It is an imbalance of commercial positions in the bond market and the subsequent exploitation or punishment of this imbalance.

In market jargon, it is a short press. This happens when a majority of traders bet on higher rates. They make these bets by selling bonds short. Short selling is about selling at today’s prices and buying back in the future at lower prices (side note: prices and yields / rates move in direction lower price = higher yields / rates).

If prices go up instead of down, there is a certain line in the sand where these traders will buy bonds to close their position and avoid further losses. In doing so, they are only pushing the price up (or lowering rates), likely forcing more short sellers to cover their losses by buying bonds. Call it a domino effect, a snowball, or a short squeeze. It all adds up to lower rates when that happens in the bond market.

Why are so many traders betting on higher rates? Well, it’s obvious, don’t you know ?! The Covid figures continue to drop. The economy continues to reopen. The Fed is increasingly believed to be considering cutting back on its bond purchases. And the list continues. Indeed, if we look at economic fundamentals, there are better arguments for a rate hike versus a rate cut.

Just one problem though: everyone knew those fundamentals were at the start of 2021, and much of the logical rate hike came in anticipation of the economic reality we are witnessing now. Additionally, the economy is still experiencing many growing pains as it heads to wherever it goes after covid. We won’t get a clearer picture of the destination until this fall, according to the Fed. This makes “lower rates” a classic contrarian trade for the time being.

Does this mean that the rates will be keep falling for the next few months?

Nobody knows. The prices are able to get down from here, but probably not exceptionally lower without further unforeseen shock. The rates are also capable of rising higher! But again, probably not exceptionally higher until we get a clear indication that the economy has shifted into high gear on a more sustainable basis. When that happens – or even if it seems to happen – that’s when we’re most likely to hear the Fed say that it is considering cutting bond purchases.

This habit will happen next week, but we might see some rate volatility nonetheless after the Fed’s last announcement on Wednesday. This is one of 4 Fed announcements along with updated Fed members’ forecasts (including the dot plot which shows Fed rate hike expectations). Between that and Fed Chairman Powell’s press conference, the Fed could send some sort of cutback message without putting it in writing.

Another joker to keep in mind is the increased discussion among Fed members about the role their bond purchases play in real estate valuations. If they conclude that the appreciation in house prices needs help to subside, they could adjust their purchase balances in favor of treasury bills. That’s a long time for next week’s meeting, but if Powell talks about it at the press conference, it would likely be bad for mortgage rates.

The press conference will begin at 2:30 p.m. EST next Wednesday.


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3 Easy Ways To Improve Your Credit Score Quickly https://www.sznurki.net/3-easy-ways-to-improve-your-credit-score-quickly/ https://www.sznurki.net/3-easy-ways-to-improve-your-credit-score-quickly/#respond Fri, 11 Jun 2021 22:08:17 +0000 https://www.sznurki.net/3-easy-ways-to-improve-your-credit-score-quickly/

LOS ANGELES – June 11, 2021 – (Newswire.com)

Your credit score determines your eligibility to borrow money, and a lower than average score can make it harder to get a loan or line of credit when you need it. Fortunately, there are many easy ways to improve your credit score. Here’s what you need to know about how your credit score is calculated and how to increase your score fast.

What Makes Your Credit Score?

Before trying to improve your credit score, it is important to understand how it is calculated. Your credit score is a numeric value between 300 and 850. If you have a higher credit score, you have a better chance of being approved for more loans. While there are several ways to calculate your credit score, FICO is one of the most commonly used methods.

Your FICO score is made up of:

Payment history (35%): Regularly making on-time payments increases your score, and frequent late or missed payments can lower it.

Use of credit or amounts due (30%): The more available credit you use, the riskier lenders will think you are. Plan to use less than 30% of your available credit to earn points here.

Length of credit history (15%): Lenders view a longer credit history more favorably. It pays to keep lines of credit open, even if you don’t use them all the time.

New credit (10%): Plan to apply for new credit only when you really need it to maintain that high score.

Credit mix (10%): Lenders like to see a mix of credit, like most credit cards installment loans or mortgages. You don’t have to have all types of loans, but keeping all of your debt in one area is frowned upon by lenders.

How To Quickly Improve Your Credit Score

Now that you understand how your score is calculated, you are ready to create a plan to increase your score. Try one of the options below to generate a quick increase in your score.

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1. Check your credit report for errors

Mistakes or mistakes on your credit report can lower your score for no good reason. You can check your credit reports for free with each of the three major credit bureaus (Experian, Equifax, and TransUnion) every 12 months.

If you find an error, you’ll want to immediately report it to the credit bureau and the creditor who provided the information. It may take a long time to resolve, but you will see an increase in your score once the errors are corrected.

2. Apply for a higher credit limit

One of the key factors in determining your credit score is credit usage, or the percentage of credit you are using over the amount you have available. If you have a balance of $ 500 on a credit card with a limit of $ 1,000, your usage is 50% (500/1000 = 0.5 = 50%).

Now suppose you contact the company that issued the credit card and they agree to increase your limit to $ 1,500. Within minutes, you are now at 33% usage (500/1500 = 0.33 = 33%). Receiving a credit limit increase can improve your credit usage and increase your score.

3. Catch up on late payments

Payment history is the highest percentage of your credit score, so updating accounts and making payments on a timely basis is one of the best ways to improve your score. It may take a while for creditors to report this information and for you to see a change in your score. But trust the process and remember that making payments on time and in full will pay off in the end.

The bottom line

Improving your credit score will not happen overnight. After you make corrections and put effort into getting your credit back in order, you will likely start to see changes in a few months. Examine your credit report, request credit limit increases if necessary, and make payments on time. Following these 3 simple steps can help you start improving your credit score fast.

Notice: The information provided in this article is for informational purposes only. Consult your financial advisor about your financial situation.

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Cyber ​​security is a big problem for bankers, but not for lawmakers https://www.sznurki.net/cyber-%e2%80%8b%e2%80%8bsecurity-is-a-big-problem-for-bankers-but-not-for-lawmakers/ https://www.sznurki.net/cyber-%e2%80%8b%e2%80%8bsecurity-is-a-big-problem-for-bankers-but-not-for-lawmakers/#respond Fri, 11 Jun 2021 19:26:00 +0000 https://www.sznurki.net/cyber-%e2%80%8b%e2%80%8bsecurity-is-a-big-problem-for-bankers-but-not-for-lawmakers/

Recent ransomware attacks against the energy and meat processing industries are a reminder of the cybersecurity risk facing the banking industry. But analysts say policymakers appear disengaged from securing the financial system.

Exhibit A, they say, was a May 27 House Financial Services Committee hearing with CEOs of the six largest banks. Four of the leaders present at the hearing cited cybersecurity as the most dangerous threat to the banking system.

While the aftermath of the May 7 ransomware attack on the Colonial Pipeline was still relevant, CEO comments did not prompt any questions or follow-up statements from the panel. The audience focused more on critiques of bank overdraft fee policies and diversity practices, corporate taxes and the industry’s response to the pandemic.

The lack of discussion on cyber risks was surprising, experts said, given that Congress held hearings in 2017 to address the issue. Equifax Data Breach.

Asked by a House member to name the biggest risk facing the financial services industry, Jane Fraser of Citigroup and Charlie Scharf of Wells Fargo were among the CEOs who cited the threat of a cyber attack.

Bloomberg News

“It’s amazing how quickly cybersecurity has fallen out of the consciousness of lawmakers given that we just dealt with this with the credit bureaus a few years ago,” said Thomas Kost, attorney at Davis Wright Tremaine. “It’s not a hypothetical threat. There could be so much substantive talk now given that the JBM [meat processing] ransomware attack and before this Colonial Pipeline.

The forced shutdowns of the JBS Meat Processor and Colonial Pipeline along with other ransomware attacks have raised questions about the interconnectivity of banking networks and their service providers.

Observers say the recent attacks have caught the attention of Congress, but safeguarding the financial sector has not been part of the discussion.

The rift between bankers’ cybersecurity concerns raised during the hearing and the lack of interest from members of Congress could have wider implications, some said. Lawmakers have struggled for years to pass meaningful reforms aimed at strengthening cybersecurity standards. Usually, Congress only paid attention to computer problems after a major attack, but then loses attention.

“The recent Colonial Pipeline incident is a good example of how often the federal legislature is primarily responsive to significant incidents that impact our critical infrastructure and impact our customers, who are their constituents,” said Will Daugherty, partner and cybersecurity expert. at Norton Rose Fulbright.

Protecting consumer data and banking system infrastructure is essential to avoid widespread economic disruption. Financial services has been identified as one of 16 critical infrastructures defined in the USA Patriot Act as so vital to the country that a failure or destruction would have a debilitating impact on the economy and security of the country.

Analysts say the two hearings of bank CEOs last month – one in the House and another in the Senate – provided the usual theater with many lawmakers seeking dramatic responses from executives rather than s’ engage in serious information gathering.

“Congressional hearings are a spectacle, with 20 or 30 episodes depending on which lawmaker is speaking,” said Ian Katz, managing director and policy analyst at Capital Alpha Partners. “This is not a good forum for conversation. Some observers may get the impression that there is supposed to be a conversation, but it is not. ”

During the House hearing, when Rep. Bill Huizenga, R-Mich., Asked the six CEOs to name the biggest risk facing the financial services industry, Jane Fraser of Citigroup, Charlie Scharf of Wells Fargo , David Solomon of Goldman Sachs and James Gorman of Morgan Stanley gave brief responses mentioning cyber risk. But Huizenga didn’t ask any follow-up questions when CEOs cited cybersecurity, or any other lawmakers.

Rather than questioning whether critical infrastructure is protected, lawmakers in the hearings instead grilled bank CEOs over overdraft fees, the pandemic reply and awareness of minorities.

“It also shows how far behind lawmakers,” said Tracy Kitten, director of fraud and security at Javelin Strategy & Research.

Some experts have suggested that the disconnect between lawmakers and others over the severity of financial cyber risks was due to members of Congress’ general lack of familiarity with technological concepts. One observer even recalled that in 2006, the late Senator Ted Stevens, R-Ala., Called the Internet a “series of hits.”

Federal financial regulators, however, have for years built cybersecurity checks into reviews. Banks also face one of the most stringent notification requirements proposed for security breaches.

In January, the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. proposed that banks notify regulators within 36 hours of any “computer security incident”. The comment period on the proposed regulations ended in April.

“Cyber ​​security has been and remains a major concern of financial regulators,” said Daugherty. “Congress can sometimes be more responsive after an incident that brings the issue to the attention of the general public.”

He noted that there was also state-level action with the Conference of State Bank Supervisors which in February released an updated cybersecurity review tool to assess non-banks.

At the House hearing last month, bank CEOs were not asked about their ability to resist and respond to an attack. Yet major banks routinely perform in-depth vulnerability scans and penetration tests, two practices that analyze vulnerabilities in IT systems, according to a March report by Moody’s Investors Service on banks’ cybersecurity strengths.

“The biggest worry for banks right now is their dependence on third parties, a supply chain type attack,” Kitten said.

The Bank’s reliance on IT vendors and supply chain partners makes the financial services industry a prime target for cyber attacks, says September report report of the Government Accountability Office. The Treasury Department and financial regulators have taken several steps to provide computer disaster response and recovery. But the Treasury is not tracking these efforts, GAO said.

Small and medium-sized banks tend to be more vulnerable because they have less to invest in up-to-date systems, experts said. Financial services companies were the target of 4.4% of ransomware attacks in the first quarter, behind professional services, the public sector, healthcare and other sectors, according to data from Coveware, a company in the first quarter. analysis from Westport, Connecticut.

Employees working from home during the pandemic forced many companies to quickly deploy new technology, exacerbating security concerns.

“In doing so, it opened up a new attack surface and opportunities for bad actors to exploit,” Daugherty said.

Congressional hearings during the pandemic were also marred by technical glitches that only underscore lawmakers’ confusion over the technology. During the House Financial Services Committee hearing last month, Representative Maxine Waters, D-Calif., Had to halt proceedings several times when some members appeared to have muted or experienced connectivity issues.

Some experts also note that Congressional hearings are often combative due to their format, with lawmakers each having only five minutes to ask questions, so substantive questions and answers are usually not the norm.

Yet banks spend weeks, if not months, preparing for hearings. Bank CEOs often meet with lawmakers before hearings. Committee staff also provided about two dozen questions to which banks were required to submit answers as part of the Congress dossier. Written responses are verified and reviewed internally by attorneys and compliance experts.

“Is it useful for lawmakers to be able to interview the CEOs of the country’s biggest banks? Yes, I’m sure, “Katz said.” But it can also sound like a missed opportunity. “


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Why Are Mortgage Rates Going Down While Inflation Is Rising? – Pasadena Star News https://www.sznurki.net/why-are-mortgage-rates-going-down-while-inflation-is-rising-pasadena-star-news/ https://www.sznurki.net/why-are-mortgage-rates-going-down-while-inflation-is-rising-pasadena-star-news/#respond Fri, 11 Jun 2021 14:53:49 +0000 https://www.sznurki.net/why-are-mortgage-rates-going-down-while-inflation-is-rising-pasadena-star-news/

The economy is picking up. Americans return to travel, eat out, go to the movies and play ball.

But if you’ve been expecting a strong recovery to lead to a steep rise in mortgage rates, think again.

On Thursday, 10-year Treasury rates (a carefully watched indicator and a major benchmark for mortgage rates) fell below 1.46%. Prior to the recent pullback, government bond yields reached 1.69% in May.

The drop in Treasury yields came after new reports showed the US trade deficit had reached record highs. For mortgage borrowers, lower Treasury yields can lead to lower mortgage rates. Typically, the 10-year Treasury is 150-200 basis points above the 30-year mortgage rate.

Greg McBride, chief financial analyst at Bankrate, said: “One day, drops in Treasury yields mean lenders often change prices that day and borrowers get better rates within hours. Treasury yields are falling. Now is a good time for borrowers to set interest rates early in the week. “

Mortgage buyer Freddie Mac said Thursday the 30-year average interest rate fell from 2.99% last week to 2.96%.

Interest rates on 15-year loans, which are popular for refinancing mortgages, fell from 2.27% last week to 2.23%.

According to the Ministry of Labor, consumer prices rose the fastest since 2008 in May, according to the latest economic news. The consumer price index in May rose 5% year on year.

Another inflation index, which excludes volatile food and energy costs, rose 3.8% year-on-year, the fastest pace since 1992.

In addition, the government announced last week that the number of Americans claiming unemployment benefits fell to 376,000 for the sixth week in a row. This is the lowest value for a new pandemic.

Sam Carter, chief economist for Freddie Mac, said: “But house prices have not yet weakened as prices remain high due to the shortage of inventory.”

The reversal of Treasury yields is just the latest ball of the curve launched by the economy. Mortgage experts expect mortgage rates to continue rising this year, said Joel Narov, director of Narov Economics.

“There is little reason for government bonds to drop,” Narov said. “Inflation has not gone away, growth is strong and the economy has just started to fully recover. Treasury interest rates are expected to recover, so lower mortgage rates may be temporary. “

What you can do to ensure a smooth and profitable refinancing

Mortgage rates have risen from their all-time lows set in January, but there is still time to refinance mortgages. Here are three professional tips:

• Shop: the best offer goes to the borrower to compare mortgage offers. You can save thousands of dollars over the life of your loan by getting at least three quotes.

• Consider rate freezes: Lenders typically extend rate freezes for 30 to 60 days. This means that if the rate goes up before the loan ends, you no longer have to pay. However, these are not normal times and many refinances don’t end within 30-60 days, so make sure your lender is prepared to extend the rate freeze if the transaction is delayed.

• Keep your credit score tight: Now is not the time to miss a payment, take on new debt, or do anything else to lower your credit score. Lenders are particularly strict on the credit history of the borrower.

Bankrate, The New York Times, The Associated Press contributed to this report.

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When you can drop your good credit score https://www.sznurki.net/when-you-can-drop-your-good-credit-score/ https://www.sznurki.net/when-you-can-drop-your-good-credit-score/#respond Fri, 11 Jun 2021 13:07:27 +0000 https://www.sznurki.net/when-you-can-drop-your-good-credit-score/

If you’ve worked hard to achieve and maintain a good credit rating, it can be overwhelming to see it go down. But “life comes, and sometimes the way you react is going to explode and affect your credit score,” says credit expert John Ulzheimer. People lose their jobs, cars break down and pipes leak. Credit can be your safety net.

Painful as it can be, there are times when taking action that hurts your score is prudent for your overall finances.

When you have an urgent expense

If you have a big, unexpected expense that exceeds your emergency savings, using your credit cards to cover it may be a decent option.

You may have temporary score damage due to a high balance on your card for a while. It’s usually best to keep balances below 30% of your credit limit, and of course paying in full each month is ideal. But the high balance damage should fade as new balances are reported to the credit bureaus.

Don’t blame yourself for not saving enough. Emergencies don’t necessarily mean when you’ve saved enough, nor do they happen one at a time. Cary Siegel, author of “Why Didn’t They Teach Me This in School? Strongly recommends budgeting and building up a sufficient emergency fund to be protected in the future.

When you’re struggling to cover essential expenses

Sometimes a crisis, such as loss of income, makes it impossible to cover living expenses. Second, sacrificing a credit score is the lesser of two evils, says Ulzheimer. If you have to choose between paying your credit card on time and keeping utilities on, protecting your family is more important.

If possible, try to make the minimum payment on your credit card before it’s 30 days late. Your credit card issuer will not be happy and you will likely have to pay late fees. But creditors can’t report you to the credit bureaus until your payment is past the 30-day due date.

If you don’t pay within this 30-day window, the creditor can report your overdue account. This negative mark on your credit report will seriously damage your score, and only time will heal the damage. It will stay on your credit report for about seven years, although the effect wears off over those years.

Siegel advises contacting the creditors and explaining what happened, when you’ll be back on your feet, and how you plan to pay them back. They may be willing to give you more time and you may be able to avoid damage due to late payment or negotiate a lower interest rate, he says. And asking can’t hurt.

When the money is on the way

Siegel, a father of five young adults, warns against over-reliance on credit. But he’s willing to make an exception when the revenue is looming but the bills are already there. A tax refund or payment for self-employment falls into this category.

If you know the money is coming, credit can be a bridge until it comes. Be ready for a score as long as you have a high credit card balance, then look for a bounce as you lower it.

When you start or invest in a business

Invest in a business This is another time when you can choose to use your credit, but keep the risks in mind. Siegel says there should be a clear, detailed business plan that is much more specific than a good idea.

A good or excellent credit score can mean you qualify for a 0% introductory rate on a credit card. Or, you may have a lot of room on your existing credit cards to temporarily show a higher balance than you normally do.

“This could be a scenario that makes sense as long as you have a plan and the ability to know when it’s time to stop it – it doesn’t work (like) I envisioned it,” says Tom Quinn, vice-president. president of FICO Scores. , a credit rating and data company. It can be tempting to go all-in, but don’t let a business idea threaten your overall financial health.

– By Bev O’Shea

This article was written by NerdWallet and was originally published by The Associated Press. About the Author: O’Shea writes on credit for NerdWallet. His work has appeared in The New York Times, Washington Post, MarketWatch, and elsewhere. Read more


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Cryptocurrency Flash Mitigation https://www.sznurki.net/cryptocurrency-flash-mitigation/ https://www.sznurki.net/cryptocurrency-flash-mitigation/#respond Fri, 11 Jun 2021 06:58:33 +0000 https://www.sznurki.net/cryptocurrency-flash-mitigation/

Just a few months ago, cryptocurrency enthusiasts were hoping Washington was warming up to digital assets. But cyberattacks demanding ransoms in bitcoin, wild trading and reprimands from regulators have eroded their optimism.

The timing couldn’t be worse. Policymakers are poised to make a number of critical decisions on virtual tokens in the coming months – decisions that could reveal just how far the industry needs to come out of the hole. The advisability of approving a Bitcoin exchange-traded fund, authorizing cryptocurrency mutual funds, and granting banking licenses to financial companies is potentially under consideration.

For advocates, the setbacks fuel concerns that some of their top priorities will be blocked by federal agencies and lawmakers will take a tougher approach to oversight. There is growing evidence that Capitol Hill is moving in this direction. Senator Mark Warner, D-Va., Said last month that cryptocurrencies “require a certain level of regulation.” Senator Elizabeth Warren reiterated this view on Wednesday.

“Our regulators, and frankly our Congress, are an hour behind and a dollar short,” the Massachusetts Democrat said in an interview with Bloomberg TV. “We need to know where these cryptocurrencies are going.”

The bad patch started in May when Securities and Exchange Commission Chairman Gary Gensler urged lawmakers to pass legislation regulating cryptocurrency exchanges, arguing the lack of oversight posed a serious threat to U.S. investors. . The comments shocked Bitcoin supporters who predicted Gensler would be an ally because, unlike most government officials, he is familiar with virtual coins.

Then the Colonial Pipeline Co. hack happened in early May, triggering fuel shortages in the eastern United States. The long gas lines have caught the attention of lawmakers, and the scrutiny may make some on Wall Street nervous about embracing more assets that are regularly linked to illicit transactions.

The Justice Department has recovered most of the tokens Colonial paid for by tracking transactions on the public ledger for Bitcoin, showing how the technology is trackable and can help law enforcement.

While digital currency can be created, moved, and stored outside the purview of any government or financial institution, every payment is recorded in a permanent fixed ledger, called a blockchain.

This means that all bitcoin transactions are open. The Bitcoin ledger can be viewed by anyone connected to the blockchain.

“These are digital breadcrumbs,” said Kathryn Haun, former federal prosecutor and investor in venture capital firm Andreessen Horowitz.

Haun added that the speed at which the Justice Department seized most of the ransom was “revolutionary” precisely because of the use of cryptocurrency by hackers. In contrast, she said, getting documents from banks often requires months or years of paperwork and bureaucracy, especially when those banks are overseas.

Still, Warren said that a key feature of cryptocurrencies is that they allow people to secretly move money, making coins a “haven for criminals.” A reminder of his point came on Wednesday when Brazilian company JBS SA revealed that it had paid $ 11 million to hackers who forced the world’s largest meat producer to shut down all of its beef factories. in the USA.

Another problem: Bitcoin has lost more than a third of its value since the beginning of May. A series of negative Elon Musk tweets contributed to the plunge, pointing out to cryptocurrency critics that token prices are too volatile and easily swayed by social media to be safe for unsuspecting investors. The frenzy over non-fungible tokens and dogecoin – a cryptocurrency created as a joke – has amplified these concerns.

“We cannot deny the potential impact that a negative media narrative could have on regulatory and legislative conversations in DC in the near term,” said Kristin Smith, executive director of the Blockchain Association business group.

High finance is largely focused on Gensler, who previously taught digital currencies courses at the Massachusetts Institute of Technology, as the SEC will determine whether a bitcoin exchange-traded fund can be traded on U.S. exchanges.

The product is considered a game changer because it would allow investors to trade entries and exits of the world’s most popular cryptocurrency throughout the day without exposing them to the risk of having to store their tokens. Adding another layer of security, consumers could buy exchange-traded funds from closely watched brokers instead of buying bitcoin from unregulated exchanges. And mutual funds and other institutional investors could put a lot more money into cryptocurrency-related assets through the funds.

An SEC spokeswoman declined to comment.

Information for this article was provided by Ben Bain and Robert Schmidt of Bloomberg News (WPNS) and by Nicole Perlroth, Erin Griffith and Katie Benner of the New York Times.


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Biometrics market for banking and financial services to reach $ 8.9 billion by 2026 https://www.sznurki.net/biometrics-market-for-banking-and-financial-services-to-reach-8-9-billion-by-2026/ https://www.sznurki.net/biometrics-market-for-banking-and-financial-services-to-reach-8-9-billion-by-2026/#respond Fri, 11 Jun 2021 03:00:54 +0000 https://www.sznurki.net/biometrics-market-for-banking-and-financial-services-to-reach-8-9-billion-by-2026/

The turning point of the next decade is expected to be more difficult for banks and financial institutions, as security breaches become more and more sophisticated with technological advancements. Money laundering has become widespread and represents around 2 to 5% of global GDP. One of the measures actively pursued by banks is biometrics, as the technology helps create a secure banking environment by reducing instances of identity fraud, establishing an audit trail of transactions, and protecting data. financial datas.

The move towards biometrics is also driven by the inability of traditional security measures such as PINs, passwords and tokens to offer effective protection, especially against the increasing sophistication of intruder attacks.

The growing awareness among bank customers of the inadequacy of PINs and passwords to provide protection against sophisticated bank fraud and online threats is driving a strong demand for robust security solutions such as those involving biometrics.

In addition, the steady increase in the number of password hacks in recent times reflects inadequate security associated with the use of passwords as a method of access. Driven by the growing need to offer protection against the growing cases of fraudulent transactions and identity theft as well as the ever-increasing scale of fraud, banks are choosing to invest in strong authentication measures.

Amid COVID-19 Crisis, Global Biometrics Market for Banking and Financial Services, Estimated at $ 4.4 Billion in 2020, Expected to Reach Revised Size of $ 8.9 Billion by 2026 , with a CAGR of 12.8% over the analysis period. , according to Global Industry Analysts. Fingerprint biometrics, one of the segments analyzed in the report, is expected to grow at a CAGR of 13.4% to $ 6.2 billion by the end of the analysis period.

After a thorough analysis of the business implications of the pandemic and the induced economic crisis, the growth of the facial biometrics segment is readjusted to a revised CAGR of 11.6% for the next 7-year period. This segment currently represents a 22.8% share of the global biometrics market for banking and financial services.

Biometrics Market for Banking and Financial Services by Region

The biometrics market for banking and financial services in the United States is estimated at $ 1 billion in 2021. The country currently accounts for a 22.84% share of the global market. China, the world’s second-largest economy, is expected to reach an estimated market size of $ 1.8 billion in 2026, behind a CAGR of 17.1% during the analysis period.

Other geographies of interest include Japan and Canada, each forecasting growth of 7.6% and 9.9% respectively over the period of analysis. In Europe, Germany is expected to grow at a CAGR of around 10.9% while the rest of the European market (as defined in the study) will reach $ 2.2 billion by the end of the period. ‘analysis.

The global biometrics market in the BFSI sector continues to grow at a steady pace, driven by the growing desire of BFSI companies to offer the highest security to customer transactions through the use of authentication measures based on the biometrics. The use of biometric technology has the potential to reduce fraud cases attributed to identity duplication.

As consumer preferences change and new payment methods are introduced, banks are forced to move towards the digital transformation of payment and card transactions. Advances in technology are also leading to an increase in the number of counterfeits and frauds, making the need for a solution that cannot be replicated is growing in importance in the banking and financial services industry.

In the financial sector, the increase in fraudulent account access due to the increasing use of mobile and online banking services reinforces the importance of access and identity management; information security governance; and information security roadmap as important implemented security initiatives for financial organizations. However, the increasing complexity of threats and the lack of adequate budgets call into question the effective implementation of such security programs.

Facial biometrics segment to reach $ 1.9 billion by 2026

Facial biometrics uses unique facial characteristics to recognize and identify individuals. Facial recognition is the most effective form of human monitoring and it includes measuring the eyes, nose, mouth, and other facial features.

The commercialization of facial recognition systems has increased due to an increase in the use of multimedia video technology. This technology is typically used for applications such as surveillance, filtering, law enforcement, and criminal justice that include kiosks and reservation stations. It could also be used in passport issuance applications, driver’s licenses and voter registration.

The global facial biometrics market is estimated at $ 996.6 million in 2020 and is expected to reach $ 1.9 billion by 2026, reflecting a compound annual growth rate of 11.6% over the analysis period . Asia-Pacific is the largest regional market for the facial segment, accounting for 23.1% of global sales in 2020.

China is on track to register the fastest compound annual growth rate of 15.2% during the analysis period, reaching $ 483.1 million at the end of the analysis period.


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Mortgage rates fall as inflation fails to scare the market https://www.sznurki.net/mortgage-rates-fall-as-inflation-fails-to-scare-the-market/ https://www.sznurki.net/mortgage-rates-fall-as-inflation-fails-to-scare-the-market/#respond Thu, 10 Jun 2021 21:04:31 +0000 https://www.sznurki.net/mortgage-rates-fall-as-inflation-fails-to-scare-the-market/

Inflation is one of the Deadly enemies interest rates. If dollars in the future will buy less than they do today, investors must set higher and higher rates on the money they lend in order to achieve the same returns. With that in mind, we would be well within our rights to assume that a surprisingly high reading from a key inflation report would push rates up. In many past cases, this is exactly how it is, but that is not what has happened today.

To be fair, the markets traded on conventional wisdom within the first 20 minutes after the inflation report was released. But from then on the bond market rallied (i.e. bond prices rose and yields fell, implying lower rates for the mortgage market).

What’s new with the paradoxical reaction? There are a few moving parts. The simplistic answer circulating is that this inflation “was not enough” to derail the Fed’s commitment to maintain policies that support lower rates. That could be a factor, of course, but the unequivocal motivation is much more esoteric. It is an imbalance of trading positions in the bond market and the subsequent exploitation or punishment of this imbalance.

In market jargon, it is a short press and that basically means that so many traders were betting on higher rates that they were vulnerable to anything that pushed rates back the other way. Such a push would force these traders to buy bonds in order to avoid further losses. This buy pushes the rates even lower, potentially reaching the stop-loss level for the next group of online traders.

This is mostly a phenomenon that occurs in US Treasuries, but mortgage-backed bonds also improved steadily throughout the day. As a result, lenders increasingly remembered the first mortgage rate sheets and free improved conditions (aka a “positive reproach”). Some of these lenders have done this more than once, in fact! But even then, it is not in their nature to pass all market gains on to their price schedules in a single day. As such, bonds would only need to stay relatively stable for further improvements tomorrow. To be clear, this is just an if / then statement and not something you would like to take for granted as a prediction.


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Plaid forms an open financial partnership with Capital One https://www.sznurki.net/plaid-forms-an-open-financial-partnership-with-capital-one/ https://www.sznurki.net/plaid-forms-an-open-financial-partnership-with-capital-one/#respond Thu, 10 Jun 2021 13:41:00 +0000 https://www.sznurki.net/plaid-forms-an-open-financial-partnership-with-capital-one/

Last year, Plaid announced its goal of devoting 75% of our traffic to APIs by the end of 2021.

This goal of fair, reliable and secure API-based data exchange is one of our top priorities as the industry progresses towards a fully digital financial system.

That’s why I’m delighted to announce an open financial partnership with Capital One – a digital finance innovator – and the successful completion of our migration to the Capital One API. As a result, Capital One clients can enjoy reliable and secure access to the applications and services in our network, and through the technical partnership, we are able to make significant progress in our efforts to help create a seamless ecosystem. identifiers.

As a result of continued open funding efforts, we have entered or have ongoing data access agreements with the majority of major US financial institutions, including US Bank, JPMorgan Chase, Wells Fargo and others. . Shifting to an API-based ecosystem helps make data sharing more reliable and also helps eliminate industry reliance on credentials, a top priority for us and the ecosystem at large.

Building a better ecosystem for consumers

Consumers have the right to access their own financial information when and how they want. With a truly open financial ecosystem, people can control access to a wider range of their financial data, such as savings, mortgages, and investments, all powered by APIs. Plaid’s integrations with financial institutions are designed to ensure that more consumers can share their financial information securely with the more than 5,000 applications powered by Plaid, including Venmo, Acorns, Betterment and Robinhood.

Today, more than half of Americans say they use digital tools to manage their money, according to a July 2020 survey. And 59% use more money management apps now than before COVID-19. As finance moves from analog to digital, even more consumers will view digital tools and services as essential, making it essential for all industry participants to adapt to a fully digital financial system.

Plaid’s recent collaborations are a testament to efforts to work across the industry to create a better ecosystem that gives people choice and control over where and how their information is shared between digital tools. Innovation will continue in this area with initiatives such as Plaid Portal, a service (currently in beta) where consumers can view and manage their account logins, allowing them to remain in control of where their data is shared.

Help drive industry change

Plaid is helping the industry to respond in a significant way to this unprecedented consumer demand for digital finance. First, for banks with the resources to create API-based data exchange, we can integrate to provide more reliable data connectivity on behalf of our common customers and the developers who rely on our network.

Second, Plaid Exchange offers an alternative for those who prefer to integrate seamlessly with a solution built by Plaid, making it easy for any financial institution, regardless of scope and size, to participate in an open financial network.

We are also a member of leading industry groups like Financial Data Exchange (FDX), a nonprofit focused on unifying the financial industry around a common standard for secure and convenient access for consumers and businesses to their products. financial datas.

As the world moves closer to an open financial future, it is increasingly important for the industry to continue to embrace innovative digital strategies that provide consumers with convenient and secure access to their financial information so they can better manage their daily life. We are delighted to continue to share the milestones of our journey there together.


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