the largest of the fintech etfs are up 5 1/2%. the hype is really, the money is flowing in there but it is not new news and somewhat old news and valuations are pretty high. charles: we know in the markets the hype comes long before actuality. to your point some of the names have been around a while. some of the names would not even know that mastercard and visa are in the s&p technology sector. first quarter of this year. 11 april pes in the space. 27 billion raced by vc. 57 megarounds of a 100 million or more. it is obviously still growing but may not derail the big banks per se, from an investment point of view what are the individual options individual investors can look for to zero in and take advantage of fintech's growth in the future? >> the cv stuff even accelerated. there was another 10 billion got allocated over your number in the last quarter. i think a dollar out of every $5 last quarter went into fintech. the stay at home investor don't participate in the vc funds. they can't get access into the deals. charles: right

david has invested in sofi and among other fintech firms. david, thank you for being with us this morning. i think you were just listening to our conversation and you are on the fintech side of this. you think they will ultimately win out against the big banks? >> i think it is a classic innovator dilemma in the marketplace. a fintech company generally has a lower operating expense per customer, so they can make less profit per customer and build a great business they also have this issue where they're not going to have shareholders lambaste them for a decline in profit or revenue over a short period of time, a couple of quarters so they can make the investment to take a more aggressive approach, make less money per customer, per year, and gain scale very quickly, as we all know, this becomes a scale -- i think there is this inherent kind of dilemma problem that old school financial services firms face they try to buy something, they step into m&a, and they face this issue where they either leave the company alone and let them kind of grow o

in fintech, there is so much broken in our plumbing. we always tend to focus on the immediate consumer facing business of fintech, but when you think about what companies have to endure, when you think about global flows of capital and the way they work, there's a lot more that can be done to improve the global flow of capital, and extending that, there's a lot more that can be done to improve general corporate enterprise. dani: does that mean that this pie is just going to keep it in bigger in terms of fintech and the innovations that can be made? or is it limited, and it means either the startups have to win or the traditional banks have to win out? sheila: when you take a very large view, you see large corporates and the startups eventually coming together. when you think about the long cycle, and that is one of the things i find really unique about joining b capital because it has the unique ability to connect with entrepreneurs, but has great partnerships that lets us bring big corporate global connectivity to these small, great id

are you a fintech company? >> we are a technology company, basically huge capability technology platforms, wonderful people that serve the clients and the buildings to make it operate. we are a technology company for years, we have 40.5 million active digital customers in the consumer business alone. last month it was 900 million times they engage with us. so that's been growing at 25%, 30% a year the amount of engagement the usage of the stuff has gone up during the pandemic we saw that driving through our wealth management businesses which is the biggest and best business in the world, driving into our commercial businesses because the necessity and that is not going back at all. it's going forward and growing into faster, so all segments of customer and consumer, wealthy people, not so wealthy people, older and younger people using the platform, then we help with the fraud protection wonderful platform, tons of en engageiment and our merrill lynch product is $300 billion and growing 25% year over year, 4 mil

says, come on jim, get into fintech. it's never too late. sell some boeing what do you think? >> well, look -- >> sounds like me. >> what is that? anyway no >> it's steve g. >> what the saxophone player look, i've got to -- >> that's kenny g. >> -- look at fintech. i know, i know it's a bad one >> you might not know. sounded kind of serious. >> so fi i got to look at sofi. it's a killer combination there, so that's where i'm going to start looking. >> joe, turning to you from tyler in new jersey. fort net has been a real winner. is it time to move on? >> i think there is more positive news to come for the entire cybersecurity industry. that's going to come here towards the end of july in earnings if you're uncomfortable with your position though, what i would recommend doing in fortinet, but a stop in it it hasn't traded for the 50-day moving average the price for the 50-day moving average is 225 put a stop in the position >> steve, love your work would you put new money to work here on livenation >> you know, i did put new money to work about 5% higher because i had been look

even though we're fintech we sit on top of the fdic bank. that's the structure of our market, and so we have to get our accounts approved by the underlying bank. we are pushing now for them to look at alternative scoring and kyc methods, and we're working with some of the best data scientists in the world which is a big issue and that's where we also need an african-american or a person of color perspective to change it and then people will gain trust because they will see they can get an account. >> what role do you see ai and machine learning playing in your ability to serve of your customers? >> that's a huge part of what we're doing is ai and machine learning, because, again, we model and looking at it around the world, and many people who do not qualify for kyc, it's possible to find from their habits that they are very trustworthy even though they don't have an account. they go to the same check cashing and same grocery store. you know who they are. it's just that their credentials don't match, but with ai you can figure out who these

many of these non-minority banks or fintechs target the banking community but the business models are not designed to support racial inequity and often result in more income and wealth extraction from the community. for example, just one small example. tax advantage private equity firms are now making investments in pike residential houses to be made available to rent. this could potentially crowd out the support and reduce opportunity for the black community to achieve homeownership, the biggest contributor to a wealth creation. black equity receives -- private equity receives its largest share of capital from government and private pension funds of which the black community is a capital supplier. therefore, the lack of investment in black businesses and black entrepreneurs actually results in the transfer of wealth from the black community to other communities. this -- the approach taken by banks and corporations support black banks and mdis can only have limited impact. black mdis tote al aggregate access as approximately $10 billion compared to total u.s. banking assets of $20 tri

many of these non-minority banks or fintechs target the banking community but the business models are not designed to in support racial equity, and often resultsu in more income and weah extraction from the community. for example, just one small example.we tax advantage private equity e, firms are now making investmentx residential houses to be made available to rent. this could potentially crowd oud thert supply of housing and rede opportunity for the black community to achieve r homeownership, the biggest contributor to wealth creation. black equity receives -- private equity receives its largest share of capital from government and private pension funds of which the black community is a capital supplier. therefore, the lack of investment in black businesses and black entrepreneurs actually results in the transfer of wealth from the black community to other communities. this -- the approach taken by banks and corporations support black banks and mdis can only have limited impact. black mdi's total aggregated assets as approximately $10 billion, compared to total u.s. banking assets

fintech is on the rise we could see that coming through in the survey. a couple key things, number one, let's just look at investing the number of interns actively investing is up three times from the 2019 survey. interestingly a third of them are investing in crypto and another third are interested in exploring that potential when we look at payments, look, one of the things that's been the case, my colleague covers paypal, square, paypal is the leader in the digital wal et and venmo, paypal is the leader. look, that is the same as last year but the expansion versus peers is widening. i think what you're hearing from paypal, they have an aspiration of expanding that lead into other products and services, to leverage what they've created with consumers >> so, betsy, we're looking at a chart showing venmo is the most popular peer-to-peer app venmo and cash app are similar zell is different and is privately owned by a number of big banks. what does the popularity of zell say about big banks and the future of fintech? >> great question, frank to me, i think

experience amazing. >>> welcome back take a look at shares of blend labs the fintech is rising at 11.5% the 9-year-old lending startup many of the top financial firms used to power their interfaces and joining us is the founder and head of blend. congratulations and what are your plans for this capital? >> there's still so much of the industry that needs to be powered by data and powered by technology we're going to continue to invest in our customers, continue to invest in our product and make sure they move the industry forward >> is it fair to say blend is a b btob product >> yeah, or a mortgage or a personal loan. it would be through your existing bank. it's entirely b2b product. >> you're seeing auto sales, mortgages, you're seeing these sectors that have been so hot. how do you see those playing out in the future? are we going to see a cooldown what does the technology tell you guys >> i think certainly we expect to see interest rates have been good refinance activity really good, but i think there's this larger digitization tail wind where financial services and other industries

i think buried in the crisis of robinhood is really the future of fintech. when they had a capital call, the recently took a settlement cycle, that's a really interesting piece that investors should watch. because i really believe that is a switchover from what's been now the fintech dollar, the payments, there really hasn't been much activity in capital markets technology, and this is a signpost, robinhood is the first step in this, very influential to the market. matt: this is one thing investors are weighing, when you disrupt an industry like this, do you have a regulatory overhang to watch out for? >> there's no question. so what i will string to get to is, just think about the peer-to-peer challenge with coinbase, they can for you probably $500 billion in the financial system to make sure things settle. that is $5 trillion of balance sheet, 10x times. the equivalent of one federal reserve. they could actually get into that business, of peer-to-peer trading. there's a lot of things he could do. to justify a higher riley ration. -- a higher valuation. mat

but given how much interest there is in fintech names, it doesn't surprise me. what i'll tell you, scott, is that the market participants right now are paying remarkable multiples and have rk remarkable interest in leading fintech companies and i think this is one of them that coming to the market today so there is a scarcity issue that's at play here. only 3% of the fintech companies are actually publicly traded and the fact that this one is yet another one to join that very small group, i think that's providing some of the investor support. but obviously all the other issues that have been raised with the committee are valid and need to be part of the equation. but the bottom line is i think this -- this ipo strength that we have seen in the market is just going to continue because the markets generally the public markets are rewarding the private companies with rich multiples. >> jim cramer, as we watch the stock trade below 37, you know, i'm wondering too about the back lash that may exist again against the company as you hear some of the hate vitriol from m

we'll discuss that, pay paul's earnings and the future of fintech after this quick, quick break. don't go anywhere. to my goals a. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. here's me learning about schwab's satisfaction guarantee. accountability, i like it. so, yeah. andy and i made a good plan. find your own andy at schwab. a modern approach to wealth management. ♪ when i was young ♪ no-no-no-no-no please please no. ♪ i never needed anyone. ♪ front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪ i got you. ♪ all by yourself. ♪ go with us and find millions of flexible options. all in our app. expedia. it matters who you travel with. >>> welcome back to "the exchange." visa delivered strong earnings yesterday but shares are slipping down 1.5% or so paypal is also losing steam ahead of results today let's bring in lisa ellis. lisa, it's great to have you regardless of what the specific

david: a look at singapore-based fintech startup. they race quite -- raised -- quite a bit of money. the capital has sort to $1 billion. joining us is the founder and the ceo of the company, expose of interview. pleasure to have you on the show. good morning. $200 million. how long will it last you? >> we go straight to profitability and straight to the ipo. it is a phenomenal raise. the fact that we are actually -- the fact that asian companies can become large on a global scale. david: ok, so, in terms of your priorities, i guess, $200 million, you mentioned the ipo. i'm tempted to ask you when that is going to be. but take us through what you plan to use this money for. prajit: i think it is largely the global scale. we presented 15 different markets -- that will increase more towards 20. we're looking at new licenses in brazil and mexico in different parts of asia. the whole element of our investment is -- and take over the capital as well. we're looking at the radius to buy companies. that's also going to be leveraging this bala

the reason why fintech's are so attractive to us is because the big banks are not seeing loan growth. smaller banks are seeing rapid chair acquisition. you look at ne-yo banking, digital banks with no physical branches, the revenues of that sector today, probably $20 billion. in five years, that $20 billion goes most likely to 400 lien dollars, so this is a significant growth. i think the fintech's can definitely capture that opportunity in a more pure way than a traditional banking sector can. lisa: are there any real data points within these earnings that matter right now, given the fact that so much of people's view on banks early hinges on what will happen later on, perhaps q4? anastasia: sam: there's two things to know -- anastasia: there's two things to know. first, where is the bright spot in these results? it is investment banking, advisory revenues. if you look at the strength in the equity capital markets, it is just stunning. m&a had a banner quarter. volumes were up over 200%. ipo's had a banner quarter and a banner year. they are up close to 200% in volume, so the investm

and whether you would like the fintech companies or if they're overvalued >> i think the finteches are priced for perfection and those are still not profitable and the penetration rates of american express are enormous and the ability for my babysitter definitely uses venmo. they also have an american express card to go to the mall i think the fintech space has a chance visa and mastercard are entrenched models to safely process many thousands of transactions that's why bitcoin won't be a currency you use to buy pizza. we think that the payment space is going to do well as we transition people across the world don't always use cash. >> we won't get into the whole thing about the lightning network. another time why does chub jump out to you so much right now >> i think chub is heading into sort of a secular environment change, industry pricing tends to go in huge, long waves. we've seen uptick and strengthening in pricing largely because of catastrophic events, hurricanes barring a major earthquake out west or multiple cat 5 hurricanes we think chubb is phenomenal >> we appreciate it. >

jp morgan buying that mag, for example -- buying nutmeg, for example, in fintech. david: with the excess cash, you don't always want to be giving it back to investors. you want to be showing incremental marginal return with that. i think you are going to continue to see firms like jp morgan, goldman sachs, and all of the banks invest in some of these newer technologies to make sure that these huge competitive advantages don't get lost to blockchain. they are going to have to make strategic investments to combat what is an inevitable trend where we are going to see more and more blockchain technology this intermediate processes that traditionally dominate or are owned by humans, and these big firms have the war chest to do that with size and scale and really strong strategy, so i think you're going to see them spend more on that front, and i believe that is where they are going. guy: is this has good as it gets for the reporting season? what about wells? what about bank of america? what are they going to look like? david: i think they are still going to look relativ

a fintech startup making its public debut today, has stronger financials than most of its already public and larger competitors. up 5 ceo joins us live along with his spac benefactor, joe mo glia of td ameritrade and wait until he sees the trading action and we got to start with this breaking news, after a manic sell-off monday, followed by a terror tuesday, we're looking at a winning wednesday, check it now major averages are positive on the week, dow jones industrial is up 260 points, the nasdaq better by 103, the s&p as you see up 31, we do have the vix, right? the stress is seeping out of the vix or volatility index because it is down by about 8% at the moment and speaking of volatility, exhibit a. the vix living up to its name. the first two days of this week, monday, fear in full control as the vix spiked about 22%, but then yesterday, more than half of those jitters disappeared thanks to a 12% drop. look at what stocks have been through just the first two days of this week. investors whip sawed by wild gyrations on monday, the dow plummeting 725 points or 2%, which was then follow

are seen as a threat in your words u.s., we have private sector fintech names here should the u.s. be doing something similar? should we be far more advanced in an effort to create a digital currency at this point in time should we be threatened by the fact that china is so far along in its quest to create this? >> so, i think the beautiful thing about the west and the beautiful thing about the united states and many other developed economies is that there's a long, long history of the private sector driving fundamental innovation whether that's core technologies like the internet itself, like the development of major standards for how we operate in commerce and business and in financial services in fact, virtually every major electronic money innovation that we know of today as individuals and businesses are created by and operated by consortiums of private sector companies, whether that's the international wire transfer system, apple pay, paypal so the west is not, you know, a place where the government runs everything industries are not nationalized. and so there is that long hi

and a bank, and also venture fund and invest in fintech. i think there's a lot of value embedded in that portfolio >> thanks for your time today. good to see you. >>> be sure to watch "closing bell" at 3:00 p.m. eastern time for exclusive interview with david solomon to further discuss those results and the outlook on the banking space. >>> the cuban government is cracking down after the mass protests the latest from the havana and the role the pandemic may have played >>> plus this commodity has given up all of its gains this year we'll tell you what it is and what's driving prices lower. stay with us >> announcer: this is "the exchange" on cnbc. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they

. >> so is that the game and the imperative then if you are in one element of this fintech space to expand to serve broader customer needs and to generate that broader loyalty we were just talking about banking yesterday and finteches and the challenge. is that what you have to do when you got so many challengers who are piling into this space >> well, i think if you look at regional banking as a space in broad, i think one thing that we believed a lot of years ago and start of directionally going for is that this banking industry has been a lot of old legacy incumbents large businesses who offered a very broad suite of products the future looks very different. it's going to be more niche. such as trading platforms robinhood, it's very it's more likely we'll see global players rather than local players. u.s. because of the size of the market comes with slower but we see that very much in all of european markets we were operating in over 20 european markets klarna is a service with your normal everyday spending and transactions and payments. that's where we want to be there will be other tr

so i think what matters in fintech really is to identify a way that you can serve those consumers and frankly cut out a lot of middlemen along the way and at the same time, you know, for good reasons financial services are a highly regulated market and it's superimportant to understand and comply with the regulations. >> scott, really appreciate it especially on a day like this. thanks so much for your time >> thanks so much for having me. >> keep our eye on the indications out of robinhood by the way, it's sort of got lost today but the market has been remarkably resilient backup dow around a 200 point gain. s&p 24 be 44 and vix at 15.5 tmo, skyworks. gilead let's get to the judge >> thanks so much. >>> welcome to the "halftime report." i'm scott wapner front and center robinhood ipo frve blowout earnings and the count down to amazon numbers after the bell. our investment committee breaking down it all, debating all of it as well. with me for the hour today josh brown, steve weiss carrie firestone, jon najarian and good to see everybody. new records for the dow, s&p today. investors

i understand that fintech is something you like. how do you distinguish between the fintech names you want to be involved with and those that are less interesting at this point? because there are still a lot of them. guest: fintech is important right now because of the cyclicals. you have been mentioning china and fintech in china and emerging markets are very interesting because in emerging markets, you don't have to deal with models with big branches. or with the rise of smartphones and mobile payments, especially in china, where it is seven times higher than in the u.s. we think these things might be adopted quicker in these regions. it is a very interesting theme and is also reflecting a change in consumer behaviors that has been paired with the pandemic. anna: thank you very much. indeed, changes gaining pace. morgane delledonne, global x etfs director of research, thank you for joining us. morgane will be continuing her conversation with us on bloomberg radio at 9:00 a.m. let's take a look at some of the stocks on the move. mo

we started with fintech, with and in november. it looks like they have their eyes set on the property and this sector is already under scrutiny with the three red lines we were reporting about, which limits a company's ability to borrow. if they crackdown further, this just adds another headache to evergrande. there is a chilling stat from ubs today in a note saying it is 77% of their maturities are coming to in the next 12 months, not just long-term bonds but short-term loans, the commercial paper, so that is a lot of debt to cover in a very short time, so it is going to be a really challenging couple of months. yvonne: options seem to be running out for the billionaire huei. >> he has been to the brink before, talking of course about the chairman who tapped his friends before and has tapped governments, and they do seem to have some options that can be reported today. they are based to try to do something to help them out. we know they talked to other developers to perhaps take some projects off their hands, to raise more cash,

all about the fintech company. netflix suffered its worst drop in three months after the streaming giant gave a disappointing forecast for the quarter. they are hoping new offerings including video games will keep subscribers loyal. this is bloomberg. ♪ caroline: nasdaq wants to establish a trading venue with other companies. we spoke about the development of it. >> we've been operating the nasdaq private market for seven or eight years. however, as we've looked at the evolution of the private markets, the companies are looking to really bring more private companies, staying private longer but also being willing and interested in providing more liquidity opportunities for investors and for employees. as we've developed this partnership we really thought about what do we want to create? we want to bring early and middle stage private companies into the platform. we have a lot of relationships with later stage private companies and we also want to bring large institutional investors into high integrity market place

but many young people also younger, smaller fintech firms, welcome to digital to euro. they see the innovation and the potential for new services. conrad and that's all for me in the business team here in berlin until next time. ah you feel worried about the fairness? i'm neil of the on the green fence is clear. we need to join me predict the green transformations for me to use for the women in asia in the me, all the money and money and under the voices. the only way i can be on top is to create my own empire this weekend on d. w. the good news a show on today's program, the unending fight against massage of me in south asia beginning and talk to thought when no less the prime minister implies women are responsible for the sexual crimes against them. we ask, is iran con massage of mistake? in the muslim women.

a s f is not dangerous to humans, but is usually an fintech company square is planning a new business focused. a new business focused on bitcoin, that according to square and twitter ceo jack dawson, he wants to create an open, develop a platform to make it easier to provide the centralized financial services following the pattern for squares previously announced digital wallet for big costs. now the global effort to hold climate changes, forcing the hands of countries who currently rely on coal has international funding for fossil fuel projects drive up. they have no choice but to accelerate the switch to renewables. and for countries that are running an energy deficit likes and bob way needs to find new sources of electricity is especially urgent. zimbabwe is energy requirements are still relying on coal power plant. a boat for the most part, stations supply the country with above 500. mit goes against the national demand of more than 2000 megawatts. the country has been on a driver creek spawns its generation capacity to boast. industrial production, our huge competitive goods or p

but many younger people also younger, smaller fintech firms will come to digital to euro. they see the innovation and the potential for new services. conrad and that's all for me in the business team here in berlin until next time, i can use the fight against the corolla virus pandemic. how has the rate of infection in developing? what does the latest research say information and contact the corona virus because it 19 special next on dw, into the conflict in savannah after 20 years fighting taliban and johnson failing to defeat them. plato forces i'm pulling out of afghanistan. my guess this week is midterm. joe, on that deputy secretary general and they tell us who joins me this week from the alliances headquarters in belgium policy justify the abandonment of the afghan people at the time of macs in conflict. in 60 minutes on w. ah, ah, a german study has found more than 40 percent of people in think it was covered. don't even know the races even higher among elderly people. and long covert symptoms of the chronic form of the virus may also go and identified that could in

the fintech company wise sees strong demand as it debuts via direct listing on the london stock exchange, giving it a market cap circuit 8 billion pounds. let's talk about where we are with the markets. as i say, we did see a cigna for can upgrade to growth expert patients today. we are seeing european equities still bid, largely led by london and by what is happening in frankfurt. the dax and the ftse are higher. the cac is lower. bonds are really the story. bonds are bid. we are seeing that across the board. as i say, the dollar is only front foot. euro-dollar exactly at $1.18. the low of the year is not that far away. taylor: i am glad you are seeing the green and your equities because it is not the story within the u.s. even the nasdaq, which has traditionally been that safe haven and defensiveness, that is now in the red following this unwind of the reflationary trade . the russell 2000, those to mystic small-cap stocks are getting worst hit despite some of the falling bond yields, which is also where the safe havens are today. you want to talk about rate of change, it is never too

we have all kinds of lot forms, retail trading platforms, other fintech platforms that are not tightly regulated. i think we will see more scrutiny in that space as well, especially -- kailey: it looks like we have lost charles. talking all things banking on this earnings day as well as what the picture going forward will look like. that was charles myers, signum global advisors chairman. battery maker ses is set to go public in a spac merger with ivanhoe. we will speak to the ceo qichao hu. this is bloomberg. ♪ kailey: this is bloomberg markets. i'm kailey leinz. it is time for the bloomberg business flash. a look at some of the business -- biggest business stories in the news right now. pepsi report the fastest growth in years. others loaded up on ships and other snack foods. pepsico's second-quarter revenue rose 13% and the company raised its forecast. citigroup will let retail customers bent on stocks without paying fees. the bank is trying to expand its wealth business in the face of competition from silicon valley, discount brokerages, and peers. citi will make its products ava

what do these players, these fintech players like square, have to do to convince businesses or individuals that using their service is safe and effective. what do they have to do to get those late converts to believe that their money is safe and they won't wake up some morning and log in and see zeros. >> yeah, that's a great question, tyler. look, obviously you need to have a sense that it has to be insured, et cetera but i also think that just over time you will get more and more adoption the first you get the early adopters, like with any other technology you get the early adopters and they swear by it and at that to their friends. it goes word to mouth and then you get more and more people on the ecosystem. i think that's how the cash app started and now they have a huge b-to-b operation, it's second to venmo in the u.s i think you'll start seeing that with the all in one sort of bank/merchant acquirer/network on the overall square ecosystem. so i think it's just an adoption curve and happens everywhere in technology i could see that happening with square as well over time. >> dan, it'

. >> what about fintech? we have thihad this surging pipeline of ipos people worried about robinhood late they are week a chunk of allocation to retail investors also what are the things you are watching jt fintech is one of the industries -- i think every industry will get disrupted by technology whether it's energy, health care, even government will get disrupted by it fintech the last three or four years, we have been investors in the sector primarily because it's been like, you know, financial dinosaurs that have been in play and they have not really listened to tsunamis, what tsunamis want i think there are interesting companies that have had a great customer acquisition strategy and now they are expanding products robinhood is a great example of that i think they will do well. we see some in insurance you think you will see a lot of interesting fintech names that are going to disrupt the old guard and that's going to continue to be true for a lot of setters, including insurance, energy, government gover

term question but given the fact we are starting to see some m&a, some partnership struck as those fintech lines between the banks and the startups begin to blur, at least the competition begins to blur, how does this landscape continue to shake out since the banks are beholden to so much more regulation in fintech >> well, some of the pressures that we've seen are in the consumer business. and some in the perhaps lower income scale of the segment, we think one of the real are in the service area, heavier reliance on overdraft fees. that the business transforms itself we've seen pnc restructuring their business and technology to give the customer more control if they've overrelied on overdraft exposure historically and we would put regions in that camp >> david konrad, thanks for joining us >> thank you, appreciate it. >> that will do it for "the exchange." i will join tyler mathison to break down the minutes from the fed's latest meeting right after this break knowing he'll be okay. goes a long way. this is financial security. and lincoln financial solutions will help you get there as you

of course, we saw with the fintech, more recently with online education. romaine: absolutely. we saw swan, the big food delivery company. really, there is this idea of a broader cloud here, beijing and xi jinping really consolidating power, that any company doing business with china is doing it in the way the government wanted to be done. joe: katie, have you ever seen anything like this, where it feels like here in the u.s., we will to an investigation and 10 years later, we will give you a $10 million buy . china going sector by sector and seriously cutting down the power of these companies. katie: it is pretty wild. i think a lot of people were surprised to see them cracking down on the education sector. this is one crackdown in a series of crackdowns. just a widespread nature i think is really spooking investors. what is interesting to me is it is not showing up in u.s. tech stocks yet. a lot of those multinationals have a lot of exposure to china. joe: there is that chart. caroline: phenomenal in terms of the overall selling pressure. we had alicia levine earlier, saying

on business now expanding to ed tech and food delivery the recent curves on ride sharing and music fintech and gaming, tal and new oriental education both down more than 10 10% today. after shifting to a not for profit business model. those are profitable models. such a move will shrink the market by 76%, regulators also saying there that online food platforms must pay workers at least the minimum local wage shares of meituan did not take the news very well and ride sharing company didi, take a look, keeps getting clobbered, down more than 40% since its u.s. debut on june 30th this morning atlantic equities downgrades the stock to neutral saying the range of outcomes leave us unable to recommend the stock until there is more certainty. if you've been invested in chinese internet stocks, look at the broad group. down 28% in just a month it is lower -- has been under performing all year. and, guys, while some might be tempted to see this as a buying opportunity, that note really says it all, with china, it is really difficult to know, jon, when regulators are satisfied or even the motive. we

the chair now recognizes the gentleman from from minnesota, has served on the fintech task force, for five minutes. >> thank you, mr. chair. this is interesting following on the testimony the questions we just heard mr. van valkenburgh, let's start with this idea that there is a need for regulation. when people promise investors wild profits from proposed new digital tokens in an initial offering is that regulated? >> a promise of future profits, reliance on the issuer's efforts is basically the how we, how we classify things as a contract. the s.e.c. would probably treat those offerings in all cases as securities. they regulate issuance and trading. >> the -- let me keep going. i want come back to that one because i want to talk about what the s.e.c. would probably do, and why that's a problem. when people make bets, again, mr. van valkenburgh, on the future price of cryptocurrencies or trade with leverage as we heard referenced, is that regulated? >> so that's on future price of an underlying commodity or swaps are futures, these kr commodities derivatives, and the cst has jurisdict

we start with fintech pushing further into crypto services jack dorsey tweeted that his payments company, square, plans to launch a new platform making it easier to, quote, create noncustodial, permissionless decentralized platforms focusing on bitcoin the latest in square's moves into the technology. the company is also building a hardware crypto wallet and about $170 million worth of bitcoin in february but square isn't the only fintech trying to capitalize here paypal announcing today that users can purchase up to $100,000 worth of cryptocurrencies per week. that's up fivefold from their previous $20,000 limit the company is also scrapping its $50,000 annual purchase limit. joanna, good morning to you. i'm thrilled that you could join us >> good morning. >> julie and i are let's start with bitcoin i mean, we see these moves coming on a week when bitcoin is down 8.5%. more than that for the month but that's not what jack dorsey is looking at here he's never short-term. he had a lot of conviction when it comes to bitcoin and this certainly fits into his long-term play >> first, thank yo

amanda: i know blend has big ambitions to make it easier, to be the amazon of fintech. are some of the impediments to that growth and progress being removed? do you see policy shifts that will take a little bit of the corner that goes on in big finance and open up this market? tim: it is clear policy makers are thinking about giving consumers more control over their financial data, making it easier to transfer that data and make it available to other financial services providers. what we do at blend, we are a part of that network that enables us to collect data on behalf of consumers, verify it, provide it to lenders so that they can better serve those consumers. i think that policy shift could be a positive for us, the general digitization of banking which will make it more convenient, opening up access to more consumers. kailey: as you try and grow your business in this digital banking world, what you do with the capital raised in this ipo? tim: we are investing in the future, still so much technology to be built to serve the banking world, whether in mortgage or othe

million and four more insight into this, breaking down the numbers, we are bringing in our intelligence fintech analyst, julie. great to have you here. julie: great to be here. romaine: obviously investors were looking for something more. what, exactly, were they looking for? julie: we have gotten accustomed to paypal having blowout quarters with the changes we have seen in digital e-commerce taking off playing into their hands. we have seen end-user growth, volume growth, and news services coming on board, so we have gotten accustomed to blowout numbers. but we have to keep in mind that two q last year was a good quarter for them. caroline: exactly, we saw some of the numbers borne out a little bit with a company running 30% on the year to date. but what about venmo on the future of payments in between each other? julie: yeah, and venmo had some great numbers, one of their highest quarters yet, lots of activities going on in these payment apps. venmo is growing with more transaction and services. yourself you may have gotten a lot of offers for a venmo credit card over the last few months. tha

with regard to new entrants, it could be walmart, it could be finteches, it could be neobanks. everyone is competing in our space. what they're doing is challenging the constraints that have been there in the banking industry the last several years and one of the things we're doing i think banks should be doing is responding to those because i think there's no reason why us, for example, can respond to a lot of the changes and changing expectations brought on in some cases by the banks. in our case we introduced what we call early payday just a couple weeks ago you can get your paycheck a couple days early. we'll spot that money to our customers and, also, back in april overdraft grace so if you have an overdraft of $100 or less we'll pay it for you. we won't charge anything we have the ability to compete with the banks but a hybrid banking model. we also bring physical locations to the customer and someone who when you call will actually answer the phone and take care of you with customer service. >> that's my number one criteria my pediatrician has a person who actually answe

everything about what they're doing in terms of making their forays into further fintech ventures or just servicing their core business, all of those are benefiting from the fact that the economy, even with the delta variant is still reopening and we're seeing such increased demand that axp has to benefit >> incredible to look at that chart. just straight line up and to the right year to date let's move along and talk about microsoft which is hitting its own all-time high after a vote of confidence over at citi the firm hiking its price target from $3.10 to $378 microsoft at 284 it's a new street high it's citi's favorite in mega cap software also the third best performer of the blue chips and best performing tech company in the dow. what are your thoughts on this one, thawed? >> how do you not like microsoft? look at a chart. i'll go to the technicals for a second look at the chart. it just goes straight up not a trading stock. of you just hold it. technology led by microsoft has been rotating in since mid-may tech comes back and it's being led by software. watch that microsoft is h

in general fintech lowers the barriers to entry to the traditional financial system and offering all consumers no matter where they are the ability to access convenient financial services at low competitive costs. cryptocurrency is no exception. as we have seen from the huge consumer demand for these innovative assets backed by technology that is permissionless, open and private, cryptocurrency allows people to transact with each other in realtime across borders for very little cost in a way that is so transparent and verifiable that it maintains more trust, actually more trust, than traditional financial transactions with a third party intermediary. most importantly cryptocurrency and block chain technology unlock access to opportunity. the open source nature of these technologies offer millions of americans the opportunity to study the underlying code, develop block chain projects and launch their own businesses all without having to ask anyone for permission. that's an incredible opportunity. over the last few years i've been fortunate to meet with many great crypto and block chai

china looks set to use the drug as a booster or those who have received 2 shops of so made faxing and fintech company square is planning a new firm that's focused on bit coin that according to square and twitter c o jack dorsey he wants to create an open, develop a platform. he says to make it easier to provide the centralized financial services following the pattern for squares previously. and digital wallet, bitcoin and northern god is not harvesting season is a crucial time for many rural women who earn a living, making shape butter. but a search in multinational companies exporting the roar nuts is now threatening their livelihoods. i saw souk reports, i had a motor house and is among dues, profiting from my knee increase international interest in gun is not industry. he buys the produce from thomas, incense it on to mark national. this particular budget destined to be shipped to techie business. he says is with me as 820182019 across david. i supply more than $10000.00 to my company and $29.00 in 2020. i sell about 18000 metro dos. ganna is west africa, had largest exporter of the money

fintech and cryptocurrency are the future of finance, but we're missing out as a country because american entrepreneurs are still unsure of how to navigate our existing regulatory system. this means high-tech jobs are going overseas and capital formation opportunities for every every day. americans are being missed. all part of the chilling effect that comes when we do not answer the questions that industry leaders and consumers are begging for questions. like what digital assets are a security what digital assets are a commodity what digital assets are currency. answering these questions will keep innovation here in america and unlock new opportunities for every american to access to conclude. let's be clear that these things are already regulated. but we need to clear we need clarity in application and enforcement of the existing laws and regulation. there are also areas where we can and should streamline our regulatory framework to ensure that we realize and benefit from crypto investment and innovation right here in the united states. i look forward to learning from the witnesses how