Banking on a Comeback: After the 2008 financial crisis, Wall Street saw the loss of more than 800,000 banking jobs. While some of the big firms haven’t stopped the layoffs, hiring in banking seems to be trending upward, according to Bloomberg. About 76,000 new jobs have been added to the market since the recession and in the instances of JP Morgan and BNP Paribas, post-crisis job cuts have been nearly reversed.
Real Estate Tax Makes Bank — But At Whose Expense?: A new tax on high-end real estate in Boston could make the city major money for some much-needed affordable housing projects, according to The Boston Globe. But implications of the new policy could pose issues for the city’s property market more largely, squeezing businesses and residents alike for an additional 6 percent on space that sells for more than $2 million.
Money Diaries: A Week in Boston: Many Millennials’ favorite form of wealth voyeurism, Refinery29’s “Money Diaries,” recently chronicled the spending, saving and splurging of a 28-year-old editor in medical publishing, living on a $67,000 salary. Perhaps most interesting is her 16 percent contribution to a 401K and the fact that her gasoline bill isn’t more expensive, given the city’s new-found traffic reputation.
Weighing Fintech’s Role in Banking: It’s no secret that retail and commercial banks see the value in technology and are budgeting accordingly. But just how much are these firms shelling out? JP Morgan, the industry’s highest spender, spent $11.4 billion in its technology budget this year, according to Business Insider. It’s a 5.6 percent uptick from the previous year’s $10.8 billion.
Fintechs and Retail Banks: An Evolution: The story above can largely be explained by looking at the history of the two industries. In our latest blog post, Vested Chief Economist Milton Ezrati examines the relationships consumer and retail banks have with technology and how it’s changed over time. Since the 2008 recession, banks’ immediate reaction was to dodge risk and play it safe. Meanwhile, a small group of innovators seized the opportunity and change the financial landscape’s future forever.