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On the consumer side, economic uncertainty and hikes in home prices and mortgage rates impact homeownership. The US homeownership rate hit 66% in Q1 2023, down from 67.9% in Q2 2020, per the FRED, as more people are forced to rent or stay dependent. The share of younger adults living with their parents is at an all-time high.

Cardholders have to have an open line of credit with the bank issuing their digital card to use the credit function. Participating banks will issue the digital cards and let consumers pick their payment preferences in their mobile banking app. For example, users can set it so they pay with debit for transactions under $100 and credit for more expensive purchases.

That鈥檚 because Musk鈥檚 purchase of the company has saddled it with $13 billion in debt. Even if Twitter successfully circumvented the commissions without fallout, the rise of hate speech and misinformation could put Twitter at odds with Apple鈥檚 and Google鈥檚 content moderation policies.

Gross profit from banking products鈥攑rimarily Square Loans, Instant Transfer, and Square Debit Card鈥攊ncreased 20% YoY. Square is still testing the Square Credit Card. Banking opportunities are a top priority for the company, CEO Jack Dorsey wrote in the letter. Block also wants to make banking on Cash App the primary banking relationship for its US customers. Artificial intelligence (AI).

Make figures like balances, credit scores, upcoming payments, and loan details prominent on the user鈥檚 main screen for increased engagement. Personalize financial education and marketing: Use the customer reaching a financial goal or taking a positive financial action as an opportunity to educate them on a new financial topic. This can be embedded in a personalized congratulatory message.

Many Gen Zers are cautious about credit card use: 30% reported having credit card debt, per a February 2023 Morning Consult survey. Cash-back rewards and credit-building tools鈥攚ithout fees鈥攕hould appeal to this demographic, as will financial educational tools. Credit invisibles will boost account openings. Chase and other issuers can capitalize on this large, relatively untapped group.

The Fed also found that lenders plan to tighten lending standards over the rest of 2023 due to concerns about bank funding costs, liquidity, and deposit outflows, per its quarterly Senior Loan Officer Opinion Survey. In the past three months, 45.1% of large and middle-market banks said they鈥檝e already tightened lending conditions. Three takeaways:. Smaller banks are most at risk.

It鈥檚 offered nearly 200 million loans to almost 30 million customers globally since launching in 2020. The program is available at about 300,000 merchants worldwide. Transaction volume was mostly driven by Venmo and Braintree, PayPal鈥檚 payment gateway geared toward larger merchants.

The big takeaway: The strong end to the year shows that easing inflation and the still-healthy labor market are buoying consumer confidence despite broader financial pressures, including high interest rates and the resumption of student loan payments.

Beyond the chart: Total US credit card balances hit $916 billion in September 2022, reaching pre-pandemic levels, per Equifax. As inflationary pressure continues, that number will likely grow. According to a July 2022 survey by Marqeta, 44% of US adults were struggling to make their minimum credit card payments, and 67% said they had relied on credit cards to make ends meet over the past 12 months.

These include bill pay, instant disbursement for loan proceeds, and sending and receiving paychecks.

The platform launched with personal finance content on credit cards, banking, loans, insurance, and investing, but Time hopes to expand into other ecommerce categories, including home, consumer tech, travel, and fashion. As this is Time鈥檚 first venture into ecommerce, it鈥檚 smart to leverage its established reputation as a publisher into the product recommendation space.

The Fed said it plans to propose a 鈥渓ong-term debt requirement for large banks鈥� so they have a 鈥渃ushion of loss-absorbing resources.鈥�. It also raised the need to enhance stress testing to capture a wider range of risk and to explore changes to liquidity rules.

Beyond enabling more sophisticated virtual assistants, generative AI will help interpret small business loan applications that contain nonnumeric data鈥攂usiness plans, for example. Commercial banking. Generative AI will speed up back-office tasks in commercial banking, such as answering questions in real time about a customer鈥檚 financial performance in complex scenarios.

And while Gen Xers expect to benefit from the wealth transfer, their debts and expenses may mean they net very little from inheritance, per NBC. What do they need? Gen X is the most financially insecure generation: 50.2% identify as not having enough money, per MarketWatch. And their younger counterparts are able to stash away around 33% more money each month.

Any deal would face several hurdles, including navigating regulatory concerns in a climate wary of antitrust issues and managing the combined debt of both companies. Successfully merging these entities would mark a pivotal shift in the media landscape, potentially setting a precedent for more consolidation.

Note: Credit card and loan accounts are excluded. Methodology: Estimates are based on the analysis of data from respective bank corporate disclosures, estimates from other research firms, historical trends, GDP trends, and macro-level economic conditions.

The lowest-ranked categories across all consumer categories were the ability to innovate new technologies and access to lines of credit. What鈥檚 the strategy? These categories do not stand alone in attracting and retaining customers鈥攔ather, when combined, these factors interact to inspire customer confidence and loyalty.

And those visits are generating business: Roughly half of Chase鈥檚 credit card sign-ups occur at a branch, as well as about half of mortgage originations. Next-level robo advisor: Executives at Investor Day also revealed the bank intends to invest $1 billion in tech development over the next year, with a focus on artificial intelligence (AI).

AI can now process a mortgage application in minutes compared with the previous 30 days, according to Automation Anywhere CEO Mihir Shukla, per The Guardian. OpenAI鈥檚 ChatGPT passed Wharton MBA and medical school exams. It鈥檚 being used to write legislation and by C-suite executives. It鈥檚 also writing news articles while Copilot writes computer code and DALL-E creates art.

Credit card debt shows limits of consumer resilience. Yesterday鈥檚 Chart of the Day: Measurement mix-ups. Methodology: Data is from the April 2023 Morning Consult survey. 2,200 US adults ages 18+ were surveyed online during March 24-26, 2023.

Julius Baer's share price dropped steeply after it disclosed exposure of 606 million Swiss Francs ($692.7 million) in loans to Signa, an Austrian real estate group. Around the same time as the announcement, Signa filed for insolvency.

And Affirm now boasts that interest-bearing loans鈥攑reviously anathema to the BNPL conceit鈥攎ake up 73% of its product composition. Affirm also hiked its maximum interest rate to 36% last year, well above the 24.7% national average for credit cards. Anti-BNPL pearl-clutching hasn鈥檛 helped.

For some activities, like applying for a loan or certain retail banking services, consumers will switch between digital and in-person as they conduct research and gather information. So the brand and available tools will need to be consistent offline and online, as they are for office workers holding physical and video meetings.

As a result, banking regulators will intensify oversight to ensure fair AI deployment, focusing on loan decisions, tenant screening, and housing-related AI applications. Breaking down the executive order: The President's executive order underscores the urgent need to oversee AI development responsibly and safely, emphasizing a unified federal approach due to the rapid advancements in AI capabilities.