Andrew Krayacich

PNC and TCW Team Up to Deliver Private Credit Platform PNC and TCW have partnered to deliver a private credit solution. The solution will leverage TCW’s loan origination, underwriting, and portfolio management expertise and will tap PNC’s extensive client relationships. The two will offer directly originated, secured cash-flow and asset-based loans to middle market companies. Financial services company PNC and TCW, a leading global asset manager have teamed up this week to deliver a private credit solution to middle market companies. The two will leverage TCW’s loan origination, underwriting, and portfolio management expertise and will tap PNC’s extensive client relationships. “We are very excited to announce this new business strategy, which represents a natural extension of TCW’s existing Direct Lending and Rescue Fund strategies with an opportunity to offer investors access to a broader segment of the middle market,” said CIO of TCW Private Credit and chair of the new joint private credit partnership Rick Miller. The two will offer directly originated, secured cash-flow and asset-based loans to middle market companies, whether or not they have private equity or venture capital backing. Together, PNC and TCW will manage the strategy’s investment activities, which range from origination to underwriting, and portfolio management. “We are thrilled to partner with PNC to expand our direct lending capabilities and provide financing to a critical segment of U.S. companies, as well as offer a differentiated investment solution for clients,” said TCW President and CEO Katie Koch. “PNC and TCW have a long history of developing creative solutions across a number of joint financings, and this partnership represents an exciting opportunity to capture significant market share of the expanding private credit market by leveraging the strengths of both our firms.” During their first year, PNC and TCW aim to have $2.5 billion in investor equity capital available to invest. Supporting this fund are investments from PNC and Nippon Life, one of TCW’s strategic partners and shareholders. Since interest rates have risen and credit has become more expensive, small businesses have become particularly vulnerable to the credit crunch. This vulnerability stems from traditional banks tightening their lending standards to mitigate risk and reduce losses. Delivering a new private credit solution should help address this gap in financing options for small businesses, providing them with much-needed access to capital to support their growth and operations. Photo by fauxels The post PNC and TCW Team Up to Deliver Private Credit Platform appeared first on Finovate. https://lnkd.in/g_3eAk24 via Finovate https://finovate.com/ May 7, 2024 at 06:42PM

In the March 2024 Banking App Insights Session for the US market, our customer feedback analysis for version 4.43 in March, we observed prevalent complaints regarding PNC's baking app functionality and login issues. However, with the release of PNC's new banking app version 4.5, there's a notable shift in sentiment. Approximately 90 customers using this version have expressed positive feedback, highlighting the app's enhanced usability and friendliness. Subsequently, with version 4.45.1, which garnered around 100 reviews by March 31st, we witnessed a surge in positive comments, maintaining an average score of 4.3 to 4.4, akin to the last quarter of 2023. To quantify this sentiment shift, we've employed a comprehensive analysis, focusing on customer ratings across different app versions. Version 4.42, dominant in the last quarter of 2023, boasted an average rating of 4.2. However, with the introduction of version 4.43, the rating dipped to 3.7. Notably, recent versions launched in March exhibited higher scores, indicating improvements in user experience. Delving deeper into the underlying reasons for these fluctuations, our foundational pillars analysis reveals significant insights. While version 4.42 demonstrated relatively low technical issues, the adoption of version 4.43 led to a near doubling of technical concerns and an increase in app login and functionality problems. Conversely, the launch of version 4.45 saw a substantial improvement in addressing these pain points, with a noticeable decline in technical issues and app bugs, crashes, and freezes. Our analytical approach unveils actionable insights crucial for app optimization, showcasing the direct impact of version updates on user satisfaction and performance metrics. Watch our full video to learn more: https://lnkd.in/g7vukcJr

Why the U.S. Regulators’ New Resource on BaaS Relationships is Disappointing BaaS-enabled banks have been operating in a regulatory minefield recently. Since late 2023, the U.S. FDIC and CFPB have issued multiple consent orders to banks, citing their BaaS relationships as the cause. From the perspective of an onlooker, it appeared that regulators were issuing the consent orders to make examples out of certain players in the industry, foregoing formal BaaS regulation. This has been particularly troubling for community banks, which often rely on BaaS to adapt to modern consumer preferences by layering the newest fintech tools on top of their legacy core systems, without the need to build technology in-house or update old technology. In response to this new stress placed on the country’s smallest financial institutions, three U.S. regulators– the Board of Governors of the Federal Reserve System, the FDIC, and the OCC– have published a new third party risk management guide for community banks. The guide is intended to supplement the Interagency Guidance on Third-Party Relationships: Risk Management document the agencies published in June of last year. The agencies’ newly published document may disappoint, however. That’s because the new document does not provide formal Baas regulation by laying out rules by which community banks can abide in order to avoid consent orders. Instead, the new document lays out “potential considerations, potential sources of information, and examples” for risk management, due diligence, contract negotiation, ongoing monitoring, termination, and governance with third parties. “This guide is intended to assist community banks when developing and implementing their third-party risk-management practices,” the new document states. “This guide is not a substitute for the TPRM Guidance. Rather, it is intended to be a resource for community banks to consider when managing the risk of third-party relationships. This guide is not a checklist and does not prescribe specific risk-management practices or establish any safe harbors for compliance with laws or regulations.” Baas-enabled banks seeking to navigate third-party relationships may find the new resource frustrating, however. While some of the advice in the document is helpful, the agencies have built a lot of wiggle room for themselves into the document. Ultimately, however, the guidance is better than nothing. Regardless of what it lacks, both community banks and even larger financial institutions will likely find it useful to compare the guide’s “potential considerations” to their current internal processes. And in the end, the guidance may help deter another tidal wave of consent orders. Photo by Joshua Hoehne on Unsplash The post Why the U.S. Regulators’ New Resource on BaaS Relationships is Disappointing appeared first on Finovate. https://lnkd.in/givFjKCU via Finovate https://finova...

Best practices for #communitybanks and #creditunions in successfully marketing investment services to their account holders. Financial Institutions are not typically known for ground breaking marketing. Big Brand Banks rely on massive budgets over creativity - Capital One alone spent almost $5bn in 2023 and they are far from the largest. Community FI's don't have those budgets. A key challenge is that whilst earning and spending money is a high interest topic for most people storing it (banking) is not. Additionally banking is essentially the same product proposition as it was 50 years ago. There is just a limited amount new to say. By comparison #Fintech companies have used marketing and product innovation as the key part of their value proposition. The average consumer focussed Fintech is communicating something to their customers through multiple different channels every few days - sometimes more. The average Community FI maybe once a month or even a quarter. For the Fintech community marketing is a core competence. #investing offers Community FI's not just a new product feature but a new way to communicate and engage with their customers with frequent, permissioned and personalized multi-channel communications. This keeps the FI top of mind, encourages them to engage with the brand and increase the frequency of logging in and using digital banking. Take a look at the variety of ways #Robinhood uses to intereact with their customers above and beyond paid advertising: - Robinhood Snacks - Weekly email with personal finance and investing news and editorial - Pricing notifications - ad hoc often daily price notifications - How to emails - when you open an account you will receive emails every week or two on how to use the service and reminding you to complete certain actions e.g. linking a bank, making your first trade etc. - Promotions - at least once a month an email product promotion with Robinhood Gold being especially hard pushed in recent months and more recently their new Credit Card This adds up with barely a day going by without some sort of communication from them to their customers but its highly varied, is personalized to an extent and to some extent information that a customer might find useful at some point. The urge to block them is mitigated by the fear you might miss out on something that will benefit you. Unifimoney is a turnkey digital wealth management platform enabling Community Financial Institutions to compete with Fintechs and Big Brand Banks at high speed, low cost and without the need for technical integration. Owned by Palm Ventures a large family office backed investment firm. If you would like to speak to us please reach out or visit the website. #banking #embeddedfinance #investing #RIA #investment #embeddedinvestments #money