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Last week we covered: How Banks Find Their Place in Embedded Finance — 3 Questions for Helix by Q2 GM, Ahon Sarkar
Affirm and Intuit release their quarterly results – bitter or sweet?
Lender BNPL Affirm Holdings has released its fourth quarter and full year 2022 results:
- Fourth quarter 22 revenue was $364 million, compared to $262 million in fourth quarter 21. For the year, revenue was $1.35 billion.
- Interest income was $138 million in Q4’22, compared to $104 million in the same period last year.
- GAAP operating income increased to $277 million in Q4 22 from $114 million in Q4 21 – and adjusted operating income was $29 million in Q4 22 from positive $14 million in Q4 21. For the year, the loss widened to $707.4 million, or $2.51 per share.
The company’s shares fell 11% in morning trading on Friday after the company reported results. Soaring interest rates, geopolitical turmoil and a sector-wide sell-off in tech stocks appear to have played a part in flattening investor sentiment – along with red inflation that is tightening consumer wallets – causing the consumer finance company to withdraw billions from the market cap with shares tumbling nearly 70% this year to date.
Financial software company Intuit released its fourth quarter and fiscal year 2022 results:
- Total online ecosystem revenue jumped 66% year-over-year to $1.28 billion. QuickBooks Accounting Online revenue grew 34% year-over-year to $623 million.
- Revenue from online services, which includes payroll, payments, time tracking and capital, soared 116% year-over-year to $657 million.
- The Credit Karma business contributed $475 million to Intuit’s total revenue in the fourth quarter, compared to $405 million in the year-ago quarter. For the year, Credit Karma contributed $1.8 billion compared to $865 million the previous year.
- GAAP operating income was $75 million this quarter, compared to $402 million in Q4’21.
The strong performance of QuickBooks Online payment solutions, an increase in billing volume per client and continued customer growth contributed to a smooth quarter for the company. Credit Karma activity has driven high levels of monthly active users and revenue per monthly active user on credit card and personal loan accounts.
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Top stories of the week
BANK OF AMERICA
BofA boosts technology as consumers welcome digital channels with open arms
After seeing a record number of consumers connecting to digital channels in July, followed by the second quarter of this year, Bank of America is preparing to increase its technology budget to further expand its electronic banking tools. During the second quarter, customers logged on to the bank’s electronic platforms 2.8 billion times, up 11% year-over-year. In July, users logged in 1 billion times, the highest month on record, while more than 72% of households in the bank are actively using digital channels to meet more of their daily needs and to plan the coming. (PYMNTES)
BlackRock expands its ETF lineup with a fintech fund
BlackRock has expanded its Megatrends platform with the launch of the BlackRock Future Financial and Technology ETF. The fund is overseen by BlackRock’s Fundamental Equity franchise and aims to enhance total return by strategically investing in companies with innovative solutions to disrupt the financial services industry. (Finance Fintech)
Block is disappointed that the CFPB has chosen to file its petition related to the Cash App payment tool
The Consumer Financial Protection Bureau has asked a federal judge to force Block to act with a few review questions related to its Cash App payment tool. The survey aims to learn more about Cash App’s handling of complaints and disputes. However, Block has yet to provide all documents and data requested by the CFPB in August 2020 and August 2021. (PYMNTS)
Square merchants across the UK can now extend BNPL via Clearpay
Block/Square integrates Clearpay (known as Afterpay outside the UK and Europe) directly into its UK ecosystem, providing access to BNPL functionality for sellers across the region – online and in person. This marks an important step in the global integration of Clearpay following its acquisition by Block, as the UK will be the first market to launch BNPL available on all platforms at the same time and can also be integrated by Square developers and partners. . (Finextra)
The Depository Trust & Clearing Corp. of Wall Street is testing a private blockchain live
US post-trade financial services firm DTCC, which handles most trades on the US stock market, has launched a private blockchain project aimed at settling trades faster for clients. Project Ion, as it is called, is designed to support T+0 or end-of-day settlement cycles using blockchain technology. Currently, stock trades take two days to settle, however, DTCC now averages over 100,000 bilateral stock trades per day in a parallel processing environment, and nearly 160,000 on peak days. (CoinDesk)
FedNow will go live by mid-2023
The Federal Reserve announced that the FedNow service will launch by mid-2023 to make faster payments more widely available in the United States. This will be done through a government-backed payment system operating anytime, seven days a week, 24 hours a day, with small banks unsuspectingly owned by larger rivals. It is intended to be a flexible and neutral platform that will support a wide variety of instant payments for financial institutions of all sizes. (WSJ)
PayPal expands further into the charitable giving space
PayPal is behind “Grant Payments” to move charitable donations from paper checks to electronic transfers. The new offering was created in partnership with the National Philanthropic Trust (NPT) and Vanguard Charitable which allows Donor-Advised Fund (DAF) sponsors, community foundations and other funders to donate through electronically using the PayPal platform – plus a dashboard made available to funders and charities to view all grant details. (Tech Crunch)
Visa tokens overtake physical Visa cards in circulation
Visa has now issued more than 4 billion network tokens globally through Visa Token Service (VTS), marking a major milestone in its exclusive offering to help secure digital payments and further accelerate innovation and trade acceptance. electronic. This technology, which helps protect underlying account information from fraudsters and bad actors, has nearly doubled Visa’s token count in a year and surpasses the number of physical Visa cards in circulation globally. (Reuters)
Visa partners with DailyPay for prepaid debit card offer
Visa is partnering with DailyPay, an on-demand payment platform that provides early access to earned wages, to launch a prepaid debit card that gives users access to their wages the day before payday. In addition to access to earned wages, the offer also provides cardholders with free DailyPay instant transfers and no-fee ATMs – the card being linked to a mobile banking platform that allows customers to track their earnings and their spending habits. (Payers)
Tweets of the week
Charts of the week
1. How does card tokenization work?
2. The United States ranks third in venture capital funding per capita in 2022
What is the trend
Here’s an overview of Dave’s digital marketing strategy (The financial mark)
Fintech CFOs Seek Reliable Funding as Investors Pull Back and Demand Higher Returns (WSJ)
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