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eWallets Don’t Make Money, Says Mandiri Capital Chief

PYMNTS

The CEO of PT Mandiri Capital Indonesia, the venture capital arm of PT Bank Mandiri, said the only way digital payment platforms can ever make money is by acting as a sort of portal into other services, otherwise it’s “just a cash-burning exercise,” according to reports. Nobody makes money from e-wallets,” Danusaputro said.

Capital 141
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Federal Reserve Releases 2021 CCAR Testing Scenarios

Perficient

In 2020, the Federal Reserve found that large banks were generally well-capitalized under a range of hypothetical events. The Fed’s Comprehensive Capital Analysis and Review (“CCAR”) stress tests are designed to ensure that large banks are able to lend to households and businesses even in a severe recession.

Exercises 309
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How to Set Your Strategic Planning Time Horizon

South State Correspondent

Banks consistently produce under their cost of capital. However, for the average bank, their cost of capital is between 9% and 14% depending on the bank’s equity liquidity with an average of 12.5%. As an industry, we misallocate capital. However, if you want to build a legacy institution, then your capital should be longer.

How To 195
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Bank IT Spending – Use These Metrics to Improve Performance

South State Correspondent

The good news is that for many other areas, budgets are lower at banks compared to last year, and the fact that IT is still positive underscores the strategic imperative that banks face to digitize traditional operations, reduce costs, gain scale, and improve the customer experience. Usually, a bank spends about 8% of its revenue on IT.

Capital 195
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Mint Payments Completes $6M Placement For Southeast Asia Expansion

PYMNTS

The report noted the capital raising will be undertaken in two tranches, with tranche 1 comprised of 50.6 The option is exercisable over an 18-month term at an exercise price of $0.079, which will, if exercised, provide Mint with further growth capital of up to $2.4 million shares, raising $4 million.

Exercises 120
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CarLotz Gets Go-Ahead From Its Shareholders For Merger With SPAC

PYMNTS

is a special purpose acquisition company (SPAC) “formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses,” according to the announcement. Acamar Partners Acquisition Corp. The company landed $305.6

Exercises 200
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Solve This Problem with Your Strategic Horizon

South State Correspondent

Strategic Horizon and Capital As mentioned, the problem that bank’s often run into when it comes to strategic planning is their time horizon is too short. The fundamental problem is a bank’s implied average life of capital is long, some 18+ years, but their strategic horizon is too short – likely under three years.