The Week in Fintech
The three fintech news that stood out from last week.
The New York Community Bank has set in motion a digital asset that is equivalent to the U.S Dollar. The bank is working towards issuing a new stablecoin called USDF stablecoin, becoming the first bank to do so. It's programmed to run on a blockchain developed by Figure Technologies called Provenance. The USDF Stablecoin helps lenders and investors to settle transactions instantly as they sell loans and other assets on Provenance.?This development shows how a community bank is not only overcoming technological and legal barriers to adopt digital assets, but also how newer technology is making blockchains and crypto more appealing to financial institutions.
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As Buy Now Pay Later gains increasing popularity among holiday shoppers, a recent report by Barclays suggests a lack of thorough understanding of how the BNPL option works.?Data suggests that despite a large number of users saying they would go for BNPL to spread the cost of Christman shopping, two in five admitted to having a lack of understanding about how the products work. Over one-third of BNPL users also admitted that they have been able to buy more than they afford with the help of this feature and few were unable to keep a track of their expenditure which has led them to miss their payments.?This survey has spurred Barclays to advocate for more regulation of BNPL products as they are worried about an imminent indebtedness crisis brewing on the horizon.?
GoWomen, the self-acclaimed “first Neo-Bank for women of colour” is preparing to launch in 2022 and is currently welcoming sign-ups. The bank, which is a sister firm of SEMA, aims to provide financial awareness and wellness through an exclusive network along with providing business opportunities to its users. GoWomen will be the latest financial institution that tries to address the lack of quality access to financial products that is faced by underserved groups. Recent studies have suggested that the financial needs of women of colour, in particular, have seldom been met by traditional banks and institutions. Banks such as GoWomen could be the answer to solve the issues of financial exclusion through micro-interventions.?