0/ $BAC CEO Brian Mohynihan on spending: "We are halfway through the year & total payments are $1.8T or ~60% of last year's level (which was a record).

Total BAC consumer SMB payments set a 4th quarterly consecutive record, reaching $976B, +41% YoY & +23% over '19.
1/ "Spending accelerated as COVID vaccinations increase, business reopen & domestic travel increase. Combined spend at retailers & services comprises over 50% of debit & credit card spending, a portion of the total spend +27% vs 2Q19.
2/ As of mid-June, domestic airline purchases were +8% vs '19 while int'l airline purchase on their cards are still down ~40%, showing the difference of the progress in United States versus other places (relevant for $V).
3/ Re their digital efforts they crossed 40M users in 1Q & added 0.25M users in 2Q w/ ~70% of households using some part of the platform. They reached 2.6B log-ins from customers in the Q.

Interestingly ~85% of booked mortgages were done digitally & 77% of direct vehicle loans
4/ Zelle saw 14.3M users in the Q responsible for 189M transactions & $57B of volume (13.2 tx / user, $3,986/user or ~$300/tx).
5/ 0 questions about FinTech on the call... seems like the Street is only focused on $JPM as it pertains to FinTech....

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with John Street Capital

John Street Capital Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @JohnStCapital

14 Jul
0/ Ben Bernanke spoke in a fireside chat on inflation, the real economy, monetary policy, etc... Re: inflation he notes Economists / Fed have revised their inflation forecast higher. "There is a very substantial transitory component, looking at base effects; used cars, airfares /
1/ hotel prices that dropped dramatically in '20 are coming up to more normal levels. There are bottleneck supply issues, chips not being able to produce cars, a commodity price jump that's not sustainable or won't continue to provide an inflationary shock, etc... Other pot'l
2/ transitory effects are the labor market. Including trend, Fed is still ~10M jobs short from pre-pandemic rate, yet participation rate hasn't moved since last summer, a lot of vacancies, there is a supply effect coming from labor market which is no doubt transitory. Parents
Read 32 tweets
14 Jul
0/ A new report out of @PitchBook & NVCA on the venture ecosystem; 2021 is on track to be a record year with $150B raised YTD, or 90%+ of last year’s previous record total ($164.3B)
1/ Mega-deals of $100M+ have already hit a new high-water mark with 198 deals closing in 2Q, & YTD total of $85.5B across 385 deals, surpassing 2020's record.
2/ No surprise given all of the Tiger / Coatue / Altimeter headlines but crossover investor participation is at unprecedented levels with 1H21 seeing $63.5B invested across 524 deals (well on track to cross $100B this year).
Read 7 tweets
13 Jul
0/ On whether or not $JPM would be disintermediated by FinTech co's Jamie Dimon said, "I think we have huge competition in banking & shadow banking, fintech & big tech...obviously, there's always a changing landscape, we have brands & capability & products & services & market
1/ share and profitability. I think some of these competitors are going to do quite well. I think a lot of them will succeed over time. But that's called good old American capitalism. I'm quite comfortable we'll do fine."
2/ On $GS earnings they highlighted "Based on our opening expectations of that business, we have had to put less rate on deposits to attract customers. It's turning out that the user interface & the engagement w/ the corporate client set just in terms of what we're offering by
Read 4 tweets
12 Jul
0/ The @DriveWealth team just published their 2Q Global Retail Trends report:
-1H21 trading volume surpassed FY20
-95% of trades placed had fractional component (think $SQ, @RevolutApp @monzo)
-$250 avg trade size in 2Q21
-Retail invested a record $28B in cash in June.
1/ Not a surprise given investor base but younger investors have fueled new account growth
-Under 40 was 73% in 2Q21, 77% in 1Q21
-Under 30 was 41% in 2Q21, 49% in 1Q21
-32% of people in the US said the pandemic inspired financial discipline
-33% said they will increase investing
2/ Geographically they saw a 62% increase in LatAm investor deposits, while inflows from APAC outpaced EMEA & US investors
Read 13 tweets
8 Jul
0/ Great podcast with @velez_david & @patrick_oshag discussing not just what David & the @nubank team have done building the world's largest digital bank (40M customers), but the LatAm startup ecosystem at large, raising money from Berkshire, disrupting incumbents, & culture
1/ Across LatAm the largest companies are often banks; in Brazil 5 of the top 10 companies are banks. David highlights that over the last 20 years Brazilian Banks have earned an ROE of ~20-30% sometimes 10x what you'd see in the US & Europe through volatile macro cycles
2/ It was in 2012 where the smartphone penetration was starting to grow very fast in Brazil & he got excited about the opportunity to deliver financial services to anyone via their phone; in a region where 250M+ people are unbanked & many more underbanked
Read 20 tweets
6 Jul
0/ We've seen a number of S1s filed for FinTech IPO's recently including $HOOD $MQ $GLBE $DLO. The co's / their advisors pay for / commission industry reports which we get to be slight beneficiaries of regarding broader macro data points / projections

A few highlights...
1/ Re: $HOOD

"30% of retail investors in the US place orders using a mobile app, according to 2018 FINRA surveys. That number grows to 59% when looking solely at participants aged 18-34."

"Retail investing now comprises roughly 20% of U.S. equity trading volume, doubling in
2/ the decade from '10 to '20."

"~60% of all Americans still do not have investments outside of their retirement accounts, and, an even greater % of young adults aged 18-29—68%—have no money invested in the stock market at all.
Read 34 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

:(