Breakingviews: Goldman fintech revolution can’t come fast enough

  • The $90 billion Wall Street firm’s young online retail-banking unit is growing and could, once big enough, crank out far higher returns than the investment bank.
  • Goldman could do with some of that extra juice At 11.4 percent, Goldman’s annualized return on equity for the quarter places it in the upper echelons of the industry, along with the likes of JPMorgan and Wells Fargo.
  • Without that benefit, Goldman’s return for the quarter would have been just 8.9 percent – below the rule-of-thumb 10 percent needed to cover the cost of capital.
  • Disappointing fixed-income, currency and commodities trading was a big part of the The division’s revenue was effectively flat relative to a poor first quarter for the industry last year.
  • They also managed a slight boost in equities-trading revenue while Goldman’s fell 6 percent.

Only a tax break spared the $90 billion Wall Street firm a dreary first quarter. Its young online banking unit is growing fast, though.
Continue reading “Breakingviews: Goldman fintech revolution can’t come fast enough”

Breakingviews: Goldman fintech revolution can’t come fast enough

  • The $90 billion Wall Street firm’s young online retail-banking unit is growing and could, once big enough, crank out far higher returns than the investment bank.
  • Goldman could do with some of that extra juice At 11.4 percent, Goldman’s annualized return on equity for the quarter places it in the upper echelons of the industry, along with the likes of JPMorgan and Wells Fargo.
  • Without that benefit, Goldman’s return for the quarter would have been just 8.9 percent – below the rule-of-thumb 10 percent needed to cover the cost of capital.
  • Disappointing fixed-income, currency and commodities trading was a big part of the The division’s revenue was effectively flat relative to a poor first quarter for the industry last year.
  • They also managed a slight boost in equities-trading revenue while Goldman’s fell 6 percent.

Only a tax break spared the $90 billion Wall Street firm a dreary first quarter. Its young online banking unit is growing fast, though.
Continue reading “Breakingviews: Goldman fintech revolution can’t come fast enough”

Wells Fargo robo-adviser to target young, first-time investors

  • NEW YORK (Reuters) – Wells Fargo & Co’s wealth management business said on Tuesday it would launch its new robo-adviser Intuitive Investor later this year in a bid to develop a new revenue stream from existing Millennial customers who may be looking to open their first investment account in a crowded online market.
  • Devon McConnell, Wells Fargo Advisors’ head of digital and direct investing, said the digital advice platform, which will initially be rolled out to employees in the first half of 2017, would be marketed to Wells Fargo customers who have savings and are comfortable taking big life steps online.
  • Wells Fargo is the latest Wall Street brokerage to join the robo-adviser party following competitor Bank of America Corp, which launched its Merrill Edge Guided Investing earlier this month, and independent firm Raymond James Financial Inc, which debuted its Connected Advisor in January.
  • Wells Fargo Advisors announced last year that it was partnering with technology firm SigFig to create its digital offering, and a pilot version of Intuitive Investor will be rolled out to Wells Fargo employees in the first half of this year.
  • McConnell said Wells Fargo Advisors’ partnership with SigFig involved engineers from both firms collaborating to create software that worked with the bank’s broader systems.

Wells Fargo & Co’s wealth management business said on Tuesday it would launch its new robo-adviser Intuitive Investor later this year in a bid to develop a new revenue stream from existing Millennial customers who may be looking to open their first investment account in a crowded online market.
Continue reading “Wells Fargo robo-adviser to target young, first-time investors”

The Commonwealth Bank just used blockchain in a ‘world first’ global transaction

The Commonwealth Bank just used #blockchain in a world first global transaction #bitcoin

  • The trade involved an open account transaction, mirroring a traditional bank letter of credit, between the seller (Brighann Cotton of the US), the buyer (Brighann Cotton Marketing Australia), and their banks (Wells Fargo and Commonwealth Bank).
  • “In the case, we demonstrated how a new approach to trade could benefit a joint Wells Fargo and Commonwealth Bank customer, Brighann Cotton,” he says.
  • The Commonwealth Bank and Wells Fargo used blockchain in what they say is a world first global trade transaction between independent banks for a shipment of cotton from Texas to Qingdao in China.
  • Blockchain, the technology behind digital currency bitcoin and now being used to simplify secure financial transactions, has been applied for the first time in a deal facilitated by an Australian bank to sell cotton to China.
  • “The interplay between blockchain, smart contracts and the Internet of Things is a significant development towards revolutionising trade transactions that could deliver considerable benefits throughout the global supply chain.”

‘The Commonwealth Bank just used blockchain in a ‘world first’ global transaction’ on Yahoo7 Finance Australia. Blockchain, the technology behind digital currency bitcoin and now being used to simplify secure financial transactions, has been applied for the first time in a deal facilitated by an Australian bank to sell cotton to China. The Commonwealth Bank and Wells Fargo used blockchain in what they say is a world first global trade transaction between independent banks for a shipment of cotton from Texas to Qingdao in China. The trade involved an open account transaction, mirroring a traditional bank letter of credit, between the seller (Brighann Cotton of the US), the buyer (Brighann Cotton Marketing Australia), and their banks (Wells Fargo and Commonwealth Bank).
Continue reading “The Commonwealth Bank just used blockchain in a ‘world first’ global transaction”

Amazon breaks into banking

Time for you to watch our midday live show. talkin' Tesla, Ethereum, Amazon:  @rickjnewman

  • Stephen Guilfoyle, chief market economist at Stuart Frankel & Company joins us live from the New York Stock Exchange.
  • Musk’s master plan Elon Musk finally revealed his second master plan.
  • Amazon has partnered with Wells Fargo to offer interest-rate discounts to some Amazon shoppers.
  • Stocks ( ^DJI , ^GSPC , ^IXIC ) are moderately flat, with healthcare ( XLV ) in the green, while industrials ( XLI ) are lacking.
  • A wheel to electrify your bicycle Sponsored Reuters Videos

Read the full article, click here.


@readDanwrite: “Time for you to watch our midday live show. talkin’ Tesla, Ethereum, Amazon: @rickjnewman”


Stocks (^DJI, ^GSPC, ^IXIC) are moderately flat, with Healthcare (XLV) showing green, while Industrials (XLI) is lacking.  Stephen Guilfoyle, Chief Market Economist at Stuart Frankel & Company joins us live from the New York Stock Exchange.


Amazon breaks into banking