The Paycheck Protection Program (PPP)—which involved thousands of participating lenders, millions of borrowers and hundreds of billions of dollars in loans—ended on May 31, 2021.
A Post-Mortem of the Paycheck Protection Program
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Commercial Banks Appear Resilient Despite Pandemic
U.S. commercial banking, like many sectors of the economy, appears to be bouncing back after a challenging 2020. Return on average assets (ROA)—a key benchmark of bank profitability—averaged 1.38% in the first quarter of 2021, up 67 basis points from its year-end 2020 level and 100 basis points from a year earlier.
Banks See Challenges from Fintech Disruption
This month, we are examining how these entrants have affected competition in the provision of financial services. Fintech firms have been labeled “disrupters.” Whether teaming up with financial institutions or going it alone, fintech firms—or neobanks—are rapidly gaining market share in several areas formerly dominated by financial institutions, such as payments and consumer loans.
Read More about Banks See Challenges from Fintech DisruptionConsumer Protection in the Fintech Era
This month, we are examining some of the consumer issues that have surfaced with these innovative ways to bank. Technology has revolutionized the way consumers interact with the financial system. Older innovations (such as the internet and mobile devices) and newer developments (such as big data and computer algorithms) have changed banks and what we think of as banking: making deposits, taking out loans and managing investments.
Read More about Consumer Protection in the Fintech EraRegulating Fintech: One Size Does Not Fit All
Just as with banks, there is no single licensing or regulatory agency that oversees fintech companies. Depending on their activities, they can be licensed or supervised by local, state or federal regulators on a functional, or activity-based, basis.