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Until more consumers can get a handle on their current debts, Synchrony likely won鈥檛 loosen lending standards, which is what it will take to reinvigorate card spend and active account growth. But new card partnerships could give Synchrony a needed boost. Synchrony just renewed its long-standing partnership with Sam鈥檚 Club, which could lead to the issuer reigniting its card relationship with Walmart.

Sezzle鈥檚 earnings growth was driven by lower-quality loans, according to Hindenburg. The company鈥檚 provision for credit losses grew 130% YoY through Q3 2024, while its loan book only grew 6% YoY. A decline in merchants. The company said it had 23,000 active merchants in 2024, a 51% drop from 2021.

Comply with lending laws for profit-generating overdraft loans, including clear interest rate disclosures. How we got here: While most financial regulators have paused their agendas during the transition to President-elect Donald Trump, the CFPB maintains a 鈥渂usiness as usual鈥� approach.

Serious headwinds from a protracted property slump, an elevated鈥攂ut stabilized鈥攜outh unemployment rate, and high local government debt have culminated in an economic slowdown and lukewarm consumer sentiment. Additional challenges include:. Rising global trade tensions.

That dynamic may shift as the Federal Reserve keeps cutting interest rates and releases consumers from their 鈥済olden handcuff鈥� mortgage rates below 4%鈥攂ut a nationwide housing shortage will likely keep prices high for the foreseeable future.

Because BNPL players like Affirm have to fund their loans from the market, unlike banks, they were more exposed to the cost of rising interest rates, leading to valuation drops for many. But funding has remained strong for Affirm since it expanded heavily into interest-bearing loans. That helped the company attract investors interested in higher yield loans.

Scotiabank鈥檚 impaired loans are up versus last year, indicating ongoing issues in US commercial real estate, where the bank has a sizable and growing presence, per MarketWatch. RBC鈥檚 loan loss provisions were up both from last quarter and YoY, reflecting ongoing risks in loan portfolios. However, these provisions outperformed analyst estimates, per The Financial Post.

Offer specific tools like mortgage calculators, budgeting tools tailored to rate-sensitive expenses, and educational resources on managing debt in a changing environment. Provide personalized financial planning services to help customers leverage lower rates for long-term goals like homeownership, investments, or savings.

And because they spend a higher share of their income on nonessentials, per a January 2024 PYMNTS.com survey, they can drive card, fee, and interest revenues from loan products for banks at a time when mass-market consumers are reining in spending. Mass affluent consumers鈥� priorities and anxieties create some specific needs.

Improving delinquencies can help mitigate concerns from regulators about concentrating their riskier debt profiles into one entity. And while Discover鈥檚 card volume is slowing, Capital One鈥檚 volume growth (likely from its higher income consumers) can help offset the slowdown once combined.

Borrowers struggling with inflation and rising interest rates can pay just the interest on their loans for up to six months鈥攚ith no implications.

Pay off debt. Create and build an emergency fund. Buy their first home. Build their retirement investments. Savings products that let millennials save for specific goals, or 鈥渂uckets鈥� could resonate well with this group, along with mortgage products with promotions for first-time homebuyers.

Proactively communicate strategies for maximizing financial resilience鈥攍ike debt consolidation or mortgage refinancing options鈥攚hich can both support customers in the short term and strengthen long-term relationships. This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends.

Persistent economic headwinds鈥攊ncluding an ongoing housing crisis and a soaring debt burden鈥攈ave undermined ad spending there. China鈥檚 share of global digital ad spending has also declined over the past five years. This year, programmatic will account for more than 9 in 10 display ad dollars in every major market except China.

Workers took out an average of 27 loans per year. In response, at least 35 companies now have EWA as a standalone offering, and major banks like PNC and TD offer such services to commercial workers. Our take: A large payment provider like Fiserv making this type of acquisition highlights the growth of the EWA sector.

There is another benefit: visibility into information like mortgages and loans, casting a wider net for potential advertisers. Closed-loop attribution capabilities. Companies that directly facilitate transactions can offer endemic advertisers closed-loop attribution, painting a clear picture of an ad鈥檚 impact on conversion.

BNPL firms defied all expectations over the last few years, when the highest interest rates in nearly 20 years were largely expected to wreak havoc on profitless BNPL firms reliant on debt and VC funding.

Consumers are grappling with a cooling job market and rising mortgage and energy costs. Retailers, meanwhile, face shrinking margins due to the UK鈥檚 latest budget and government policies. Several companies, including Currys, Sainsbury鈥檚, and Marks & Spencer, have already signaled price hikes in response to rising payroll taxes and the increased National Living Wage.

The move could help WBD reduce its debt load while capitalizing on stronger-performing assets. Wall Street has been pushing media companies to separate struggling linear networks from streaming operations. This restructuring positions WBD to better compete as viewing habits continue shifting toward streaming.

The portfolio had approximately $8.5 billion in existing loans, per a government filing. And by bringing the card program more in-house, Walmart will have more control over it and can likely negotiate better terms with its new issuing partner. The bigger picture: One and Walmart have expansive financial services ambitions.

Positive factors, including falling mortgage rates, could fuel a 鈥渞obust market,鈥� sending sales up 4% YoY to $87 billion. Negative conditions, such as a tariff-fueled inflation spike, could lead to a 鈥渨eak market鈥� in which sales dip 2% YoY. The long-term blueprint: Lowe鈥檚 expects sales to rise 3% to 5% per year in the next three to five years once the housing market stabilizes.

Partnering with AI vendors and deploying the technology selectively where it delivers clear benefits, like in lending and loan processing. Leveraging genAI to analyze internal data more effectively, which improves fraud detection, decision-making, and operational efficiency while freeing up staff to focus on customer relationships.

Some SMBs turn to national banks for better loan rates, advanced product offerings, and superior digital services. Local banks and credit unions have smaller branch and ATM networks. Local FIs may simply suffer from lower brand awareness. Our take: A few big banks are making strides in offering the types of digital features SMBs have been asking for, but none currently offers it all.

Auto loan balances soar. As vehicle costs have risen, so have auto loan balances. We expect the average auto loan balance this year to reach $15,252.07 per consumer, 49.3% higher than its pre-pandemic figure in 2019. Click here to view our full forecast for US loan volumes. Auto and auto parts sales growth slows.