Struggling to survive…
Partner or perish: The once-promising fintech unicorn On Deck Capital has hit a rough patch due to the COVID-19 pandemic. As competitors flooded its niche and customer acquisition expenses went sky-high, company margins fell. They are just one of many finance startups from the fintech boom of the last decade facing necessary mergers and acquisitions in order to survive the current economic downturn. Read more in this piece by Forbes for further insight into the matter.
Chinese banks venture out: “US banks continue to gain share from European banks. Chinese institutions have generally proven incapable of expanding globally. When they buy sports cars and flashy hotels, it just doesn’t feel solid.” This proved to be false as the pandemic took hold, the Dow Jones index of top American lenders crashed by 50%.
As China starts to re-open, its banks are also starting operations and venturing into the global economy. As per The Economist, this alone could lead “incumbents to self-isolate—accelerating the discreet spread of Chinese banks in emerging markets.”
Remote work works: The coronavirus pandemic has caused shifts in the way people are able to perform their jobs across almost every industry. As governments are looking to reopen their local economies, many individuals are hoping that their companies will still adopt a permanent remote work policy- a recent survey conducted by IBM found that 75% of employees would prefer to continue working from home in some capacity, reports Business Insider. With benefits for employees as well as their employers ranging from increased job satisfaction and lowered overhead costs, remote work structures seem to have few drawbacks.
Surviving the crash: In this article via AARP, eight top minds in the financial industry discuss their tips and insights into the ongoing economic downturn. Among the panel are Ric Edelman, founder of Edelman Financial Engines; Carrie Scwab-Pomerantz, President of Charles Schwab Foundation; Mohamed El-Erian, Chief Economic Advisor of Allianz; and Diane Swonk, Chief Economist of Grant Thornton. They discuss everything from Social Security and Medicare to survival tips for individuals who may not currently have investments.