fintech digest
Trump Economic Implications, Embedded Finance and SaaS, Non-Bank Consumer Lending And More
Research Team
1 November 2024
What Financial Markets Say About the Economic Implications of a Potential Trump Election Victory
There is large uncertainty around the economic effects a second Trump term would have. This column assesses the potential implications of Trump winning the upcoming election through the lens of financial market participants. The authors find that investors associate a higher likelihood of Trump winning with adverse supply-side effects on net.
Embedded Finance Grows Amid Surging SaaS Demand
Research from payments provider Adyen and BCG shows small business appetite for integrated financial services has driven 25% market growth.
Embedded finance products have created a $185bn market opportunity for software providers, marking a 25% expansion since 2022, according to research released by global payments technology provider Adyen and Boston Consulting Group (BCG).
63% of Consumers Under 35 Open to Financial Services From Non-Banks
Today’s financial landscape is changing as embedded finance integrates banking services into everyday consumer experiences. This development is driven by brands stepping into roles traditionally held by banks, creating innovative and convenient financial solutions for consumers.
A PYMNTS Intelligence Report, “Brands as the New Bankers: The Changing Face of Financial Services,” in collaboration with Galileo, explores the critical decision facing traditional banks: adapt to these changes and collaborate with emerging brands or risk losing their competitive advantage.
US Treasury Discusses the Tokenization of Treasuries
During Tuesday’s meeting of the US Treasury’s Borrowing Advisory Committee, the members explored the topic of tokenizing US Treasuries. It discussed the impact of stablecoins on the demand for short term Treasuries, concluding that the effect is marginal. The presentation covered the use of tokenized Treasuries as a safe haven in the digital asset sector. And finally, it focused on how blockchain and tokenization could improve Treasury market operations, including the benefits, costs and risks.
Crypto Industry Reacts as US Treasury Fails to Add Digital Assets in New Strategy
In a speech at the ABA Annual Convention on Tuesday, US Treasury Secretary Janet Yellen revealed a new National Strategy for Financial Inclusion (NSFI), but the issue failed to mention crypto in a good light. With the US presidential election only a few days away, this may negatively impact support for Democrat candidate Kamala Harris.