Today In Digital-First Banking: NY-Based FinTech Petal Notches $55M; BNY Mellon, GTreasury Collaborate For Cash Management
In today’s top news in digital-first banking, New York-based FinTech Petal has landed an additional $55 million, while BNY Mellon announced a collaboration with GTreasury for cash management. Plus, small and medium-sized businesses (SMBs) are reporting challenges with the forgiveness section of the Paycheck Protection Program (PPP).
Petal, which aims to disrupt the world of credit cards, has landed a further $55 million in funding, which puts the total amount of venture funds committed to the firm to the $100 million threshold. The New York-based FinTech bases credit decisions on a person’s cash flow instead of typical industry metrics. Valar Ventures led the Series C round of funding.
BNY Mellon announced a tie-up to help clients invest and manage funds by allowing them to access the cash management and payment abilities of GTreasury. The bank’s clients will have the ability to have a further understanding of their cash balances and better use of them via the collaboration. They will be able to better discern the location of balances across bank accounts, geographical locations and time zones.
SMBs are reporting challenges with the forgiveness portion of the PPP as the function opens up. The regulations for PPP loan forgiveness stipulate that a SMB wouldn’t have to pay back the loan if it had 60 percent of the funds going toward wages and 40 percent to other allowable expenses. Advocates, however, are asking Congress to streamline the process.
The chief executive of Bank of America indicated Thursday (Sept. 24) that credit card delinquencies are “lower now than they were last year” as additional individuals come of deferrals and shoppers are beginning to spend more. Even though the wider economy has bouced back with 92 percent of Americans employed, he is concerned about the remainder. “The unemployment rate is still over 8 percent and that’s not healthy for the American economy,” Brian Moynihan told CNBC.