PPP Fraud Puts Effectiveness of FinTech on Display

In March, the Paycheck Protection Program (PPP) was initiated to provide loans to small businesses, as part of the comprehensive coronavirus stimulus bill (CARES Act). Through this program, $660 billion was authorized to support business owners keep up their payroll and other operating expenses. However, the scale of the program and lack of borrower scrutiny has attracted numerous fraudsters, including a NYC resident who was charged with a $20 million PPP and SBA loan fraud. In this report, we highlight fraud strategies such as “loan stacking” and the use of FinTech to address these problems.

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We Discuss Trends and the Impact of Technology Used in M&A and Capital Raise Transactions

Investment banks that conduct complicated M&A and capital raise transactions are notoriously resistant to deploying technology in their operations. This attitude affects larger investment banks down to the one-man firms advising on transactions, since the transactions are high-impact and there is not any room for error (i.e. highly risk adverse). Migrating these organizations to a 21st century technology stack will result in bankers to dispensing strong advice. Alex Koles, CEO of Evolve Capital, spoke with Federico Baradello, the CEO of Finalis , a VC-backed software driven firm enabling investment banks to operate, in the cloud, all aspects of a transaction.

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Our Observations from the Finovate and DigIn Conferences

Insurance is a traditionally staid business that has operated the same way for years. As I walked around the Risk and Insurance Management Society (RIMS) Conference this year, the conversations were different because the insurance industry is aware the status quo is about to change. There’s a big gap between the established insurance business practices and the new InsurTech world.

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Bridging the Gap Between Insurance and InsurTech

Insurance is a traditionally staid business that has operated the same way for years. As I walked around the Risk and Insurance Management Society (RIMS) Conference this year, the conversations were different because the insurance industry is aware the status quo is about to change. There’s a big gap between the established insurance business practices and the new InsurTech world.

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Key Factors Increasing Consumers’ Demand for Credit

As the U.S. and global economies continue to expand and recover from the Great Recession of 2007-2009, the consumer, a key driver of the U.S. economy, is spending again and tapping into different types of credit. The rapid growth of online lenders, expansion of digitally enabled lending technologies (e.g. point of sale solutions at the home or online), and growth in lending to subprime borrowers are all catalysts for the rise in demand.

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Digital Players Disrupt the Wealth Management Industry

Rapid changes are occurring in the wealth management space and the level of disruption in how advice and capital are managed is only beginning. Wealth management is a monumental industry. The players in the space run the gamut from gigantic hedge funds to individuals who manage their own investments.  This changing wealth management landscape is driving a significant uptick in transactions.

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