What’d I miss? News and Insights that got noticed - Week 28

Key themes this week (July 5 - 11)

• JPMorgan warns 86 million customers they might have to start paying for their bank accounts
• Bain Capital reportedly closing in on deal to acquire Envestnet
• Embedded Lending Puts SMBs at Center of Financial Services Landscape
• Target Says Time’s Up For Paying With Paper Checks

JPMorgan warns 86 million customers they might have to start paying for their bank accounts

“…Chase Bank customers could see some additional charges in the not too distant future…”

Key takeaways:

• The potential charges are due to new regulatory rules that cap overdraft and late fees.
• Marianne Lake, CEO of consumer and community banking at JPMorgan, says Chase will pass along increased expenses to customers.
• Banks previously threatened to charge for debit cards over a decade ago but didn't due to fear of consumer backlash.

LinkedIn Post

Bain Capital reportedly closing in on deal to acquire Envestnet

"...Bain Capital, a US-based investment firm managing around $185 billion in assets, is reportedly closing in on a deal to acquire financial software provider Envestnet, according to a report by Reuters citing sources familiar with the matter..."

Key takeaways:

• Envestnet, based in Pennsylvania, offers financial planning, data analytics, and wealth management solutions, serving major US banks and wealth management firms.
• The potential acquisition is estimated to value Envestnet at around $3.5 billion, close to its current stock price of $63.
• The deal coincides with a leadership transition at Envestnet following the departure of CEO Bill Crager in March.

LinkedIn Post

Embedded Lending Puts SMBs at Center of Financial Services Landscape

"...In the new, emerging financial services landscape, SMBs are now wielding unprecedented influence over the development and delivery of financial products — making the digital commerce landscape more deterministic rather than reactive. Instead of choosing to accept certain forms of payment due to a fear of missing out (FOMO) on customer business, or playing catch-up to their larger peers and competitors, SMBs are now finding themselves able to design each step of the commerce experience to deliver the outcome they ultimately desire..."

Key takeaways:

• Embedded lending is transforming the financial services landscape, placing SMBs at the center of this shift. This allows SMBs to design the commerce experience to meet their desired outcomes.
• Embedded lending, such as BNPL, simplifies the purchasing process and increases conversion rates. It expands the customer base by offering financing options, leading to higher sales volumes and larger transaction sizes.
• SMBs actively shape the financial products offered to customers. By partnering with FinTech companies and leveraging customer data, they can personalize lending solutions and differentiate themselves in the market.
• There's significant interest in embedded lending from both SMBs and consumers. However, lenders serving SMBs have not fully embraced its potential, missing an opportunity to address a critical market need.

?LinkedIn Post

Target Says Time’s Up For Paying With Paper Checks

"...Target is committed to creating an easy and convenient checkout experience, and that includes providing our guests with numerous ways to pay, including our new Target Circle Cards (formerly known as Target RedCard); cash; digital wallets; SNAP/EBT; buy now, pay later services; and credit and debit cards,” said Target company spokesman Brian Harper-Tibaldo in an email, according to the Star-Tribune.

“Due to extremely low volumes, we’ll no longer accept personal checks starting July 15. We have taken several measures to notify guests in advance to aid an easy and efficient checkout experience,” Harper-Tibaldo added..."

Key takeaways:

• Customers can still mail checks to cover their Target Circle Card credit balance.
• Other retailers like Whole Foods and Aldi also do not accept paper checks, while Best Buy still does.
• Federal Reserve data shows a sharp decline in check usage since 2003, with checks accounting for only 1 out of 46 monthly payments in 2023.
• Despite digital alternatives and security risks, checks remain a preferred payment method for many businesses, especially in sectors like real estate, retail, and construction.

LinkedIn Post

[Recommendation] What a great video by Dan Ariely where he shares an approach to responding to misinformation.

I found the concept of the illusion of explanatory depth (IOED) especially interesting and Dan does a great job in the video of explaining it and applying it to a real life situation.

If you don't have time to watch the video now make sure you bookmark it and get back to it later (I am sure Dan has a suggestion about how not to procrastinate on watching it later).

Key takeaways:

• Dan suggests using questions to change people's minds more effectively than providing information. Here's a summary of the technique:

1. Questions to reduce confidence: Ask questions that reveal gaps in understanding. For example, asking someone how a toilet works can expose their overconfidence in a topic.
2. Questions to slow people down: Encourage deeper thought by asking for complex responses on the issue they care about.
3. Questions to evoke empathy: Help them understand the perspective of those most affected by the situation.
4. The goal: By using these types of questions, you can guide people towards changing their opinions more effectively than simply presenting them with information.

• Further examples are available in the video.

LinkedIn Post

Jenius Bank’s ‘special sauce’: Keeping it simple, with a little parent company help

"...In just a year, the digitally native bank has surpassed $1 billion in deposits and $900 million in personal loans..."

Key takeaways:

• Jenius Bank's President, John Rosenfeld, attributes this success to a focus on simplicity, innovation, and customer service, offering only two basic products: a high-yield savings account and a personal loan.
• Jenius Bank operates entirely in the cloud, without physical branches or paper-based processes, allowing for greater efficiency and flexibility.
• The bank's customer acquisition strategy relies heavily on digital aggregators like Bankrate, NerdWallet, and Credit Karma.

LinkedIn Post

POLL Results: What are your thoughts on renovating your home?

Inspired by the post on renovation and the release by the Brownstone Boys of their book "For the Love of Renovating", I want to ask you the LinkedIn audience if you have considered renovating your home?

I asked the LinkedIn audience to let me know how they feel about renovations?

Key takeaways:

• 21% of respondents think of it but don't do it
• 21% of respondent are getting ready to renovate
• 7% rather move to a new home
• 50% are happy with my current home (some after completing renovations)

These were the answers at time of publishing of this newsletter for final results go to:

LinkedIn Post

Check this out:

If you just want to listen to the What’d I miss Top 3 from last week you can watch this video…?

As I am always interested in what you think about these posts, send me a message, or just leave a comment on the post on LinkedIn. If you like reading this please engage with the posts since that is the currency of LinkedIn.