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Today In Payments: Default Fears Mount As China’s Banks Encourage Loans; Goldman, Morgan Stanley Predict Economic Devastation

In today’s top news, state-owned financial institutions in China are offering incentives to boost consumer lending, and economists at Goldman Sachs and Morgan Stanley predict the coronavirus will be economically devastating. Also, banking FinTech Finastra was hacked.

As China’s Banks Encourage Loans, Default Fears Mount

More than a dozen state-owned financial institutions in China are offering incentives to boost consumer lending despite an increase in the number of people defaulting. Beijing is looking at personal lending as a way out of the economic crisis brought on by the coronavirus.

Goldman, Morgan Stanley Predict COVID-19 Will Trigger Economic Devastation

Economists atGoldman Sachs Group and Morgan Stanley are warning that the coronavirus will be more economically devastating than originally forecasted. Morgan Stanley told clients to expect U.S. GDP to plummet over 30 percent between April and June.

Finastra Hacked, Forced To Shut Down Key Systems

Banking FinTech Finastra was hit with a security breach on Friday (March 20) and was forced to shutter key systems and send employees home. The company’s statement does not clarify the type of attack, but it’s believed to be a ransomware attack.

Airbnb Mulls Fundraising To Recoup Coronavirus Losses

Airbnb is talking with investors to figure out possible avenues of funding as the coronavirus cripples its business. Bookings were down year on year by 50 percent in the U.S., 75 percent in Europe and 95 percent in Asia.

The Eleven Days That Changed The Consumer’s COVID-19 Mindset

Between March 6 and 17, the number of U.S. consumers extremely concerned about contracting the coronavirus doubled, and two and half times as many are worried about dying from it than losing their jobs. Those, Karen Webster said, are just two of the results from the second PYMNTS survey of almost 2,000 U.S. consumers about the virus and its impact to their daily behaviors. Dive into the latest data on what consumers are doing and why.

PSCU CEO: Credit Unions Step Up And Step In For Members

The world is a very different place than it was even two weeks ago as COVID-19’s ripple effects keep racking up. PSCU CEO Chuck Fagan told Karen Webster that it’s a tough time for credit union (CU) members, but also a unique opportunity for CUs to step in and help. After a few years of record performance and the right tools and tech, Fagan said it’s not only the right thing, but the smart thing to do.

Grappling With COVID-19, Airlines Shift From Passengers To Cargo

Amid the coronavirus, American Airlines Group (and a number of peers) has shifted some of its emptying passenger jets and put them to work transporting cargo. The shift represents the first flights for the carrier without passengers since 1984. The planes will transport medical supplies, eCommerce items and office equipment, flying between Frankfurt and American Airline’s base at the Dallas-Fort Worth airport.

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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