In today’s top news, banks are flooded with cash as consumers hoard money, and banks are expected to cut personnel. Plus, China’s new regulations could slow down a potential TikTok sale.
With profits and margins at all-time lows, the U.S. banking system is in flux as customer deposits surge and make the safety net for failures fall below a legal limit. The coronavirus pandemic's disruptions have left banks “flooded with cash and it's hard to know what to do,” said Brian Foran, an analyst at Autonomous Research, according to WSJ.
U.S. and Canadian banks are all but certain to cut personnel costs as the COVID-19 shock gives way to more long-term economic problems, even though the CEOs of some banks pledged this past spring to not lay off employees.
As TikTok, the short video-sharing app, faces a Sept. 15 deadline to sell its U.S. operations to an American company, its sale could be slowed by the Chinese government, which imposed new restrictions on the export of artificial intelligence (AI) technologies, requiring approval by the People's Republic of China.
Fantasy gaming company DraftKings CEO Jason Robins thinks the special purpose acquisition company (SPAC) market might be getting a little too big following a deluge of investments.
For sellers dealing with cash-flow shortages, marketplace payout speeds aren't cutting it — and more than 60 percent of small sellers will switch marketplaces for real-time payout options. PYMNTS' new Marketplaces As Retail’s New Front Door report, done in collaboration with Visa, surveyed 1,049 small sellers and found that real-time payouts can translate into a $129 billion market opportunity for online marketplaces that offer it.
Capturing consumers and getting them to convert at checkout will be more complicated and have higher stakes this holiday season than ever before, Doug Bland, PayPal’s senior vice president of global credit, tells Karen Webster. That’s why PayPal is rolling out its latest Pay Later option, "Pay in 4" just in time for the holiday season. Here’s an inside look at how it works.
Walmart, teaming with Microsoft, is vocal about its interest in acquiring TikTok. Here’s how the big-box retailer might turbocharge its omnichannel, digital commerce and advertising efforts — not to mention broaden its reach with younger, digitally savvy consumers if TikTok answers its knock.