DOCSLIB.ORG

Alternative Data Transforming SME Finance

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

Alternative Data Transforming SME Finance May 2017 © INTERNATIONAL FINANCE CORPORATION 2017. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 www.ifc.org The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC encourages dissemination of its work and will normally grant permission to repro- duce portions of the work promptly, and when the reproduction is for educational and non-commercial purposes, without a fee, subject to such attributions and notices as we may reasonably require. IFC does not guarantee the accuracy, reliability, or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors, and technical errors) in the content whatsoever or for reliance thereon. The boundaries, colors, denominations, and other infor- mation shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Di- rectors of The World Bank or the governments they represent. The contents of this work are intended for general informational purposes only and are not intended to constitute legal, securities, or investment advice, an opin- ion regarding the appropriateness of any investment, or a solicitation of any type. IFC or its affiliates may have an investment in, provide other advice or services to, or otherwise have a financial interest in, certain of the companies and parties (including those named herein). All other queries on rights and licenses, including subsidiary rights, should be addressed to IFC’s Corporate Relations Department, 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433. International Finance Corporation is an international organization established by Articles of Agreement among its member countries, and a member of the World Bank Group. All names, logos, and trademarks are the property of IFC and you may not use any of such materials for any purpose without the express written consent of IFC. Additionally, “International Finance Corporation” and “IFC” are registered trademarks of IFC and are protected under international law. Cover photo: www.istock.com G20 GLOBAL PARTNERSHIP FOR FINANCIAL INCLUSION i Table of Contents Acronyms ...................................................................................................................................................................................... iii Acknowledgements .................................................................................................................................................................... iv Foreword ....................................................................................................................................................................................... v Executive Summary .................................................................................................................................................................... vii Large SME Market, Credit Gaps, and Opportunities .............................................................................................................. 1 The Rise of Digital SME Lending ................................................................................................................................................ 5 4.1 SME Marketplace Lenders ........................................................................................................................................................ 8 4.2 Technology, E-commerce, and Payment Giants ...............................................................................................................15 4.3 Supply Chain Finance Platforms ........................................................................................................................................... 18 4.4 Mobile Data-Based Lending Models ....................................................................................................................................20 Digital Lenders and Bank Convergence: The Future of SME Finance ..............................................................................23 5.1 Advantages and Challenges for Digital SME Lenders ....................................................................................................... 23 5.2 Advantages and Challenges for Banks ................................................................................................................................ 23 5.3 Collaborative Partnerships Gaining Momentum ............................................................................................................... 24 5.4 The Rise of the Digital SME Banker/Lender ........................................................................................................................28 Alternative Data Policy Issues and Challenges ..................................................................................................................... 31 6.1 Data Privacy and Consumer Protection Issues ..................................................................................................................31 6.2 Opt-in Models as Opposed to Opt-out Models ................................................................................................................31 6.3 Credit Reporting Service Providers ...................................................................................................................................... 32 6.4 Cyber Security .......................................................................................................................................................................... 32 6.5 Pricing Transparency ............................................................................................................................................................... 33 6.6 Balancing Integrity, Innovation, and a Competitive Marketplace ................................................................................. 33 Conclusions and Recommendations ......................................................................................................................................35 Endnotes ......................................................................................................................................................................................39 Annex 1 - Alternative SME Lender Business Profiles ............................................................................................................45 G20 GLOBAL PARTNERSHIP FOR FINANCIAL INCLUSION iii Acronyms ACH Automated Clearing House MYOB Mind Your Own Business API Automated Programming Interface O2O Offline-to-online APR Annual Percentage Rate OECD Organisation for Economic B2B Business-to-business Co-operation and Development B2C Business-to-consumer OSHA Occupational Safety and Health B2G Business-to-government Administration CBA Commercial Bank of Africa P2B People-to-business CDR Call detail records P2P Peer-to-peer CRM Customer relationship management PAFI Payment Aspects of Financial CRF China Rapid Finance Inclusion EDC Electronic data capture POS Point-of-sale EFL Entrepreneurial Finance Lab ROA Returns on assets EFTPOS Electronic funds transfer at point of sale ROE Returns on equity FICO Fair, Isaac and Company RBS Royal Bank of Scotland FINRA Financial Industry Regulatory Authority RMB Renminbi GIS Geographic Information System SBI State Bank of India GPFI Global Partnership for Financial Inclusion SCF Supply chain finance GPS Global Positioning System SME Small and Medium Enterprise IFC International Finance Corporation SMS Short message service ICCR International Committee on Credit UK United Kingdom Reporting UPI Unified Payment Interface KCB Kenya Commercial Bank UPS United Parcel Service KYC Know Your Customer US United States MSME Micro, Small and Medium Enterprises VAT Value-added tax MVNO Mobile Virtual Network Operator WEF World Economic Forum iv ALTERNATIVE DATA TRANSFORMING SME FINANCE ACKNOWLEDGEMENTS This report was co-written by John Owens and Lisa Wilhelm. World Bank Group, Finance and Markets Global Practice: It has benefited from the peer review of many experts. The authors, the Project Leads on behalf of the SME Finance Oscar Maddedu Forum, Matthew Gamser, CEO, and World Bank Group, Fabrizio Fraboni Ghada Teima, Lead Financial Sector Specialist, would Alban Pruthi like to thank the following individuals for their valuable Fredesvinda Fatima Montes contributions. Ghada Teima Tony Lythgoe Amy Millington, eBay Foundation Douglas Pearce Thomas Deluca, AMP Credit Technologies Antonio Desocio and Banca d’Italia SME Finance Forum: Andreas Kind, IBM Allison Baller, IBM Matthew Gamser David Snyder, Wells Fargo Bank Hourn Thy Ross Leckow, IMF Nadia Afrin Michael Turner, Patrick Walker, Chet Wiermanski, PERC Jeffrey Anderson Dawei Liu, Creditease Daniel Drummer, JP Morgan Finally, the authors, the SME Finance Forum and the World David Medine and CGAP Bank Group would like to thank Germany, the Silicon Valley Enrico Libbiani, Experian Community Foundation, and the Swiss State Secretariat for Marco Benvenuto, Experian Economic Affairs (SECO)
Recommended publications
  • Crowdfunding in Asia

    Crowdfunding in Asia

    Crowdfunding in Asia May 2018 Introducing the first free directory of crowdfunding platforms across Asia. The data is based on the AlliedCrowds Capital Finder, a database of over 7,000 alternative finance capital providers across emerging markets. Our data has been used by organizations like FSD Asia, UNDP, World Green Economy Organization, GIZ, World Bank, and others in order to provide unique, actionable insights into the world of emerging market alternative finance. This is the latest of our regular reports on alternative finance in emerging markets; you can find all previous reports here. Crowdfunding rose in prominence in the post-financial crisis years (starting in 2012), and for good reason: a global credit crunch limited the amount of funding available to entrepreneurs and small businesses. Since then, crowdfunding has grown rapidly around the world. Crowdfunding is especially consequential in countries where SMEs find it difficult to raise capital to start or grow their businesses. This is the case in many Asian countries; according to the SME Finance Forum, there is a $2.3 trillion MSME credit gap in East Asia and the Pacific. Crowdfunding can help to fill this gap by offering individuals and small businesses an alternative source of capital. This can come in the form of donation-based as well as lending-based (peer-to-peer or peer-to-business) crowdfunding. In order to help entrepreneurs and small business owners to find the crowdfunding platform that’s right for them, we are releasing the first publicly available list of all crowdfunding platforms across Asia. The report is split into two key sections: the first one is an overview of crowdfunding platforms, and how active they are across the largest markets on the continent.
  • Creating a Micro, Small, and Medium Enterprise Focused Credit Risk Database in India: an Exploratory Study

    Creating a Micro, Small, and Medium Enterprise Focused Credit Risk Database in India: an Exploratory Study

    MARCH 2021 Creating a Micro, Small, and Medium Enterprise Focused Credit Risk Database in India: An Exploratory Study A CASI Working Paper Savita Shankar Lecturer, School of Social Policy & Practice University of Pennsylvania CASI 2019-21 Non-Resident Visiting Scholar CENTER FOR THE ADVANCED STUDY OF INDIA CREATING A MICRO, SMALL, AND MEDIUM ENTERPRISE FOCUSED CREDIT RISK DATABASE IN INDIA: AN EXPLORATORY STUDY Savita Shankar Lecturer, School of Social Policy & Practice, University of Pennsylvania CASI 2019-21 Non-Resident Visiting Scholar A CASI Working Paper March 2021 © Copyright 2021 Savita Shankar & Center for the Advanced Study of India ABOUT THE AUTHOR SAVITA SHANKAR is a CASI 2019-21 Non-Resident Visiting Scholar and a Lecturer at the School of Social Policy & Practice at the University of Pennsylvania. She earned her Ph.D. at the Lee Kuan Yew School of Public Policy, National University of Singapore. She has taught at the Keio Business School, Japan; the Asian Institute of Management, Philippines; and the Institute for Financial Management and Research, Chennai, India. Prior to her academic career, she worked with financial institutions in India for ten years (Export Import Bank of India and ICICI Bank) focusing on project appraisals and stress asset management. Her research interests include issues related to micro, small and medium enterprises, financial inclusion, and social entrepreneurship. She has consulted for the Asian Development Bank as well as for Habitat for Humanity (Cambodia and Philippines). Her ongoing research includes a collaborative project on the potential for setting up a credit risk database for micro, small, and medium enterprises in India.
  • Lending Trend Etfs AMPLIFYLEND CROWDBUREAU® ONLINE LENDING and DIGITAL BANKING ETF WHY INVEST in LEND?

    Lending Trend Etfs AMPLIFYLEND CROWDBUREAU® ONLINE LENDING and DIGITAL BANKING ETF WHY INVEST in LEND?

    As of 3/31/2021 Invest in the Online Amplify Lending Trend ETFs AMPLIFYLEND CROWDBUREAU® ONLINE LENDING AND DIGITAL BANKING ETF WHY INVEST IN LEND? 1. Access to a rapidly growing and evolving industry that seeks to disrupt the LEND seeks investment results that generally financial and banking sectors. correspond to the CrowdBureau® P2P On- line Lending and Digital Banking Index (the 2. Diverse group of global companies providing solutions for increasing Index). The Index is comprised of companies capital needs of businesses and individuals. that 1) operate the platforms that facilitate 3. Expertise – CrowdBureau® (Index Provider) is a thought leader in the P2P lending and digital banking, and 2) pro- online lending & digital banking space. vide the technology & software that enable the operation of these platforms. WHAT IS PEER-TO-PEER LENDING? FUND FACTS Peer-to-peer (P2P) lending is the practice of lending money to businesses and Ticker LEND individuals through online services that match lenders with borrowers. P2P/ CUSIP 032108862 online lending generally refers to the financing method, typically internet-based, by which capital is raised through the solicitation of small individual investments Intraday NAV LENDIV or contributions from a large number of persons, entities or institutions that Expense Ratio 0.65% lend money directly or indirectly to businesses or consumers. Inception Date 5/9/2019 P2P lenders provide a solution for businesses and individuals to the inefficiencies Exchange NYSE Arca found within the traditional banking systemvestment to the mining space. M&A activity favors junior miners, as it is cheaper for senior miners to buy production Index-Tracking than build capacity themselves.
  • Volume 3, Issue 3(III) : July

    Volume 3, Issue 3(III) : July

    Volume 3, Issue 3 (III) Volume 4, Issue 4 July - September 2015 October - December 2015 International Journal of Research in Management & Social Science Volume 3, Issue 3 (III): July - September 2015 Chief Patron Shree Zahirul Alam Ahmed Director, Empyreal Institute of Higher Education. President , Bhramaputra Welfare Organization Editor- In-Chief Dr. Tazyn Rahman Members of Editorial Advisory Board Dr. Alka Agarwal Mr. Nakibur Rahman Director, Former General Manager ( Project ) Mewar Institute, Vasundhara, Ghaziabad Bongaigoan Refinery, IOC Ltd, Assam Dr. D. K. Pandey Dr. Anindita Director, Associate Professor, Unique Institute of Management & Technology, Jaipuria Institute , Indirapuram, Meerut Ghaziabad Dr. Namita Dixit Dr. Pranjal Sharma Assistant Professor, Associate Professor, Department of Management ITS Institute of Management, Ghaziabad Mile Stone Institute of Higher Management, Ghaziabad Dr. Neetu Singh Dr. Sarmistha Sarma HOD, Department of Biotechnology, Associate Professor, Mewar Institute , Vasundhara, Ghaziabad Institute of Innovation in Technology and Management Dr. V. Tulasi Das Mr. Sukhvinder Singh Assistant Professor, Assistant Professor, Acharya Nagarjuna University, Guntur, A.P. Institute of Innovation in Technology and Management Dr. Nurul Fadly Habidin Ms. Shivani Dixit Faculty of Management and Economics, Assistant Professor, Universiti Pendidikan Sultan Idris, Malaysia Institute of Management Studies, Ghaziabad Dr. Archana A. Ghatule Dr. P.Malyadri Director, Principal, SKN Sinhgad Business School, Pandharpur Government Degree College, Hyderabad Dr. Kavita Gidwani Dr. Lalata K Pani Associate Professor, Reader, Chanakya Technical Campus, Jaipur Bhadrak Autonomous College, Bhadrak, Odisha Copyright @ 2014 Empyreal Institute of Higher Education, Guwahati All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior written permission.
  • Knowledge Exchange and Data Networking And

    Knowledge Exchange and Data Networking And

    - ACCELERATING FINANCE FOR BUSINESSES - KNOWLEDGE EXCHANGE AND DATA NETWORKING AND CONVENING ADVOCACY AND POLICY CHANGE The SME Finance Forum has over 100 members from 42 countries Members by % % % % Organization 52 26 11 11 Financial Fintech Development Associations Type Institutions companies finance institutions NORTH EUROPE EAST ASIA AMERICA AND PACIFIC 20 % 16 % 26 % Advisory Board Issac Awundo, Group Managing Director, Commercial Bank of Africa Thomas DeLuca, CEO and Founder, AMP Credit Technologies Aysen Kulakoglu, Head of Department, Undersecretariat of Members the Turkish Treasury by Region Dawei Liu, Senior Vice President, CreditEase Jay Singer, Senior Vice President, Global SME Products, Mastercard 9 % Peer Stein, Advisor, Financial 15 % SOUTH Institutions Group, International ASIA 4 % Finance Corporation AFRICA 10 % LATIN AMERICA Devrim Tavil, International Head AND CARIBBEAN of SME Banking, BNP Paribas MIDDLE EAST AND CENTRAL ASIA List of all member organizations • ACCIS • CreditEase • Inter-American Investment • OPIC • ADFIAP • CRIF Corporation • Oxigen • Afriland First Bank • DCB Comemrcial Bank • International Factors Group • Palestine Investment Bank • Akiba Commercial Bank • DHGate • International Finance Corporation • PERC • AMP Credit Technologies • Diamond Bank • Intesa Sanpaolo • PRASAC • Ant Financial • Dianrong • Janalakshmi Financial Services • Qianhai Credit Bureau • Asian Credit Fund • DigiVation • Kabbage • Rakuten • Asifma • Ecobank • Kafalah SME Loan Guarantee • RBL Bank • Association of Banks in Malaysia
  • Crowdlending in Asia: Landscape and Investor Characteristics

    Crowdlending in Asia: Landscape and Investor Characteristics

    Crowdlending in Asia: Landscape and Investor Characteristics November 2020 2 Table of Contents Overview 3 Methodology Overview 4 Methodology Statement 4 Crowdlending in Asia 5 Text Analytics and Insights 7 Crowdlending Investor Characteristics 15 Survey Analysis and Insights 16 Crowdlending in Asia: Landscape and Investor Characteristics | Findings and Insights | Findings and insights 3 Overview Multiple issues arise with the emergence of crowdlending; these pertain to regulation, risk management and investors’ behaviour. Compared to the non-investment crowdfunding model, crowdlending is the dominant model in the world. As of 2019, crowdlending accounted for more than 95% of the funds raised worldwide, with Asian countries – particularly China – in the lead. In early 2020, China had the largest volume of money-raising transactions from crowdfunding totalling more than 200 billion USD. However, given the industry’s potential growth in Asian countries, multiple issues with crowdfunding practices need to be resolved. Media coverage on crowdlending is increasingly widespread, as seen from how it has become a buzzword within the last few years. Media attention on crowdlending can help us understand media awareness, media framing, and public understanding of the topic. Further, there is a lack of information on distinct characteristics and decision making of crowdfunding investors in the field of investor behaviour. We analysed the news coverage on crowdlending in Asia spanning a ten-year period from 2009 to 2019. We also surveyed crowdlending investors to understand their behaviours when interacting with crowdlending platforms. Our analyses provide insights into the challenges and opportunities of the crowdlending industry in Asia. They also reveal crowdlending investors’ behaviour.
  • Person-To-Person Lending

    Person-To-Person Lending

    PERSON-TO-PERSON LENDING IS FINANCIAL DEMOCRACY A CLICK AWAY? Prepared under AMAP/Financial Services, Knowledge Generation Task Order microREPORT #130 September 2008 This publication was produced for review by the United States Agency for International Development. PERSON-TO-PERSON LENDING IS FINANCIAL DEMOCRACY A CLICK AWAY? Prepared under AMAP/Financial Services, Knowledge Generation Task Order microREPORT #130 DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. AKNOWLEDGEMENTS This report was prepared and compiled by Ea Consultants and Abt Associates under the Accelerated Microenterprise Advancement Project-Financial Services Component (AMAP-FS) Knowledge Generation Task Order. It was authored by Jennifer Powers, Barbara Magnoni and Sarah Knapp of EA Consultants. The authors would like to thank the Management of Calvert Foundation, dhanaX, Kiva, MicroPlace, MyC4, Prosper, and RangDe, for taking the time to speak candidly with us about their institutions, their industry and some of the challenges and opportunities they face. The authors also acknowledge the contributions of the microfinance institutions benefiting from these sites including: International Microcredit Organization (IMON), Norwegian Microcredit LLC (Normicro) and YOSEFO, who allowed themselves to be interviewed for this report. Finally, the authors would like to acknowledge the guidance and support of Thomas DeBass, USAID. CONTENTS I.
  • Investigating the Application of Banking Regulation to Online Peer-To-Peer Lending Platforms in South Africa to Counter Systemic Risk

    Investigating the Application of Banking Regulation to Online Peer-To-Peer Lending Platforms in South Africa to Counter Systemic Risk

    Investigating the application of banking regulation to online peer-to-peer lending platforms in South Africa to counter systemic risk Tamarin Angela Floyd Student number 16391871 A research project submitted to the Gordon Institute of Business Science, University of Pretoria, in partial fulfilment of the requirements for the degree of Master of Business Administration. 6 November 2017 i © University of Pretoria ABSTRACT The behaviour and activities of online peer-to-peer lending platforms have evolved in different ways across jurisdictions, not fitting neatly within existing financial regulatory frameworks. Together with the growth momentum of the industry and the cases where losses were suffered, this culminated in a call to regulate peer-to-peer lending platforms adequately. The research presents an analysis of online peer-to-peer lending platforms through the lens of banking theory, questioning whether peer-to-peer platforms are behaving like banks and whether they pose systemic risk. These research questions feed into the ultimate research problem: whether online peer-to-peer lending platforms should be regulated like banks with respect to liquidity and capital requirements. Liquidity and capital requirements were designed to stem systemic risk in financial systems and have been praised as effective tools. Qualitative exploratory research was undertaken with 18 experts in the field. Key findings included that the presence of systemic risk is contingent on the operating structure and legal implications of the peer-to-peer platform. In certain cases, systemic risk could be present and as such liquidity and capital requirements should apply. The scope of the research was restricted to the South African financial system due to the unique nuances of its regulatory framework.
  • Current State of Crowdfunding in Europe

    Current State of Crowdfunding in Europe

    Current State of Crowdfunding in Europe An Overview of the Crowdfunding Industry in more than 25 Countries: Trends, Volumes & Regulations 2016 Current State of Crowdfunding in Europe 2016 CrowdfundingHub is the European Expertise Centre for Alternative and Community Finance [email protected] www.crowdfundinghub.eu @CrowdfundingHub.eu Keizersgracht 264 1016 EV Amsterdam The Netherlands This report is made possible by the contribution of: Current State of Crowdfunding in Europe is a report based on research conducted by CrowdfundingHub in close cooperation with professionals from all over Europe. Revised versions of this report and updates of individual countries can be found at www.crowdfundingineurope.eu. Current State of Crowdfunding in Europe 2016 Foreword We started this research to get a structured view on the state of crowdfunding in Europe. With the support of more than 30 experts in Europe we collected information about the industry in 27 countries. One of the conclusions is that there is a wide variety of alternative finance instruments that is being offered through online platforms and also that the maturity of the alternative finance industry in a country can not just be measured by the volume of transactions on these platforms. During the process of the research therefore, the idea took root to develop an Alternative Finance Maturity Index. The index takes into account the volumes in the industry, the access to relevant and reliable data, the degree of organization of the industry, the presence and use of all the different forms of alternative finance and also the way governments are regulating the industry with rules that on one hand foster alternative finance but on the other hand also protect consumers and prevent excesses.
  • Apis in BANKING: UNLOCKING BUSINESS VALUE with BANKING AS a PLATFORM (BAAP)

    Apis in BANKING: UNLOCKING BUSINESS VALUE with BANKING AS a PLATFORM (BAAP)

    APIs IN BANKING: UNLOCKING BUSINESS VALUE WITH BANKING AS A PLATFORM (BAAP) Patricia Hines, CTP 21 March 2018 This is an authorized extract and reprint of the Celent report “APIs in Banking: Four Approaches to Unlocking Business Value” and was not sponsored by Fidor Bank in any way. For more information, please contact Celent (www.celent.com or [email protected]). CONTENTS Executive Summary ............................................................................................................ 1 Key Research Questions ................................................................................................. 1 The Evolution of APIs .......................................................................................................... 2 Driving Business Value with APIs ....................................................................................... 4 APIs for Banking as a Platform ........................................................................................... 6 The Path Forward ............................................................................................................. 25 Leveraging Celent’s Expertise .......................................................................................... 27 Support for Financial Institutions ................................................................................... 27 Support for Vendors ...................................................................................................... 27 Related Celent Research .................................................................................................
  • Axis Credit Card Flight Booking Offers

    Axis Credit Card Flight Booking Offers

    Axis Credit Card Flight Booking Offers howeverSadducean irritated Sigfrid Christopher euhemerising bong ruthlessly. feckly or Autarchicdivinises. GonzaloFraudful Northrupcompared premieres or disenthrall iconically. some factorisations Christianly, Use goibibo flight tickets, you can i think your tickets from private banks: grab this card credit flight offers Book at flight hotel or bus with us to get amazing discount from easemytripcom using Axis Bank debit and credit cards. Credit cards or 5 percent cashback on Flipkart Axis Bank credit card. Instead of offering high fixed wages Delta instead offers industry-leading. Handled were outside and axis that offer complete type the booking Customer to. Axis Bank Coupons Offers & Promotion Codes CouponDunia. It ids through the ability to make a different airline given to axis credit card flight offers, but the year and. Offer code field on domestic and some banks, but not sure people over a dream come with axis card is no implication on payments done with best deals. Spend 20000 above time the first 90 days and your first year memebership fee waived off Renewal Offer. Flight ticket booking between 4pm to 1159 pm every wednesday Offer is valid when Making payment with Axis Bank Debit or Credit card. Lasting about 30 minutes equivalent to one rotation the ride or flight given they report it is remarkably smooth. Codes database for Online Shopping Flight Hotel and Holiday Booking. Then if you are happy seeing the price you request for open ticket list a credit card. Axis Bank Neo and IndianOil Axis Bank Credit Card Offer Online Movie can Offer BookMyShow. Goibibo Offer Credit Card Offers HSBC IN.
  • Statement of Natalie S. Talpas, Senior Vice President and Digital Product Management Group Manager, PNC Bank

    Statement of Natalie S. Talpas, Senior Vice President and Digital Product Management Group Manager, PNC Bank

    Statement of Natalie S. Talpas, Senior Vice President and Digital Product Management Group Manager, PNC Bank Consumer Financial Protection Bureau Symposium on Consumer Access to Financial Records, Section 1033 of the Dodd-Frank Act Wednesday, February 26, 2020 I. Introduction and Executive Summary PNC Bank, National Association (PNC) appreciates the opportunity to participate in the Consumer Financial Protection Bureau’s (Bureau) symposium regarding data aggregators and consumer access to financial records. PNC is a Main Street bank focused on serving the financial needs of our customers and communities. We have employees in more than 40 states across the country and a retail branch network located primarily in the Mid-Atlantic, Midwest and Southeast, with approximately 2,300 branches and 9,100 ATMs. We are proud of our longstanding history of supporting our customers, communities and employees while operating a sustainable long-term business. We are committed to providing our customers with access to convenient technology tools and the financial applications of their choice, while protecting the personal and financial information they entrust to us and maintaining the integrity of our systems. We support our customers’ use of financial applications (apps) and informed consumer choice in accessing and sharing their financial data. In fact, we process millions of trouble-free logins by financial apps, and the data aggregators that support these apps, each week. What are data aggregators? Data aggregators are nonbank financial services companies that gather financial data on consumers from banks and other financial institutions, such as broker- dealers, and make this information available to financial apps and, potentially, other purchasers of consumer data.