Banks must brace for impact of new stimulus package

What to read today: Small Business Point-of-Sale Battle : Insider Intelligence lays out the difficulties SMBs are facing during the pandemic and the opportunities POS providers have in helping firms address those pain points. We look at how POS providers can attract new SMB clients while helping their existing customers by meeting their changing needs during the pandemic..

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January 2, 2021 Latest stimulus bill presents familiar challenges with new wrinkles for US banks. The new stimulus package is a clarion call for banks to once again funnel aid to US consumers and businesses, as it injects a fresh $285 million into the Paycheck Protection Program (PPP) and includes a new round of checks for consumers. We see two primary challenges banks need to be ready for as the effects of the new stimulus package take hold: a balancing act when it comes to handling PPP loans and a surge of digital banking activity as stimulus checks are disbursed. The pressure will be particularly intense for those banks that learned hard lessons in the earlier days of the pandemic. Banks need to preemptively strengthen their digital channels to handle a similar spike that's likely to come with another round of much-needed funds. Business Insider Intelligence's Gregory Magana has the full story. BRIEFING HIGHLIGHTS Q&A with Chase head of digital Allison Beer We spoke with Allison Beer, head of digital at Chase, about how the bank accommodated a higher volume of digital users this year, and what to expect in 2021. Read More → Stacking up the payments and commerce predictions we got right Despite the widespread uncertainty of this year, we were still on track in three key areas. Read More → Chinese regulators clamp down on Alibaba and eye Ant Group Beijing's State Administration for Market Regulation announced the launch of an antitrust investigation against Alibaba, while Chinese finance regulators summoned Ant Group to discuss its compliance processes. Read More → Neobanks are pulling out the stops to attract users with flashy features To set themselves apart from incumbents, many neobanks rely on rare features that can be costly to provide—but speak directly to consumer needs that incumbents leave unsatisfied. Read More → Ecommerce was a clear winner this holiday season US ecommerce sales grew 47.2% annually between November 1 and December 24, according to recent Mastercard SpendingPulse data. Read More → 3 Notable alt lender acquisitions amid a difficult year for fintechs This year has taken a toll on many fintechs globally, with alt lenders in particular struggling to operate as borrowers became riskier and retail investors became wary of lending money to consumers or businesses via loan marketplaces. Read More → RESEARCH IN FOCUS Small Business Point-of-Sale Battle Insider Intelligence lays out the difficulties SMBs are facing during the pandemic and the opportunities POS providers have in helping firms address those pain points. We look at how POS providers can attract new SMB clients while helping their existing customers by meeting their changing needs during the pandemic. Get the full report → The Evolution of Digital Stock Trading Insider Intelligence explains how startups sparked change in the stock trading industry; gives an overview of the key players in the stock market today, and where startups like Robinhood fit in. Get the full report → The UK Banking Channel Forecast Insider Intelligence forecasts the growth or decline over the next five years of five key banking channels in the UK: branches, digital platforms, smartphones, call centers, and ATMs. We identify the drivers behind the trajectory of each channel's penetration, including changes to consumer behavior or advancements in technology. Get the full report → BECOME A SUBSCRIBER Did you know the Daily is just a preview of everything Business Insider Intelligence has to offer? Our Briefing subscriptions deliver analysis on the biggest trends and decisions shaping the future of a specific industry. Stay on top and subscribe today to receive: A cornerstone industry report Daily Morning newsletters Opportunities to join the conversation Get Started Today → FOLLOW US Email sent to: newsletter@newslettercollector.com Manage your email preferences | Unsubscribe | Terms of Service | Privacy Policy © 2021 Insider Inc. 1 Liberty Plaza, New York, NY 10006