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BrianFagioli shares a report from NERDS.xyz: A new academic study has found that the 2016 Wells Fargo scandal pushed many consumers toward fintech lenders instead of traditional banks. The research, published in the Journal of Financial Economics, suggests that it was a lack of trust rather than interest rates or fees that drove this behavioral shift. Conducted by Keer Yang, an assistant professor at the UC Davis Graduate School of Management, the study looked closely at what happened after the Wells Fargo fraud erupted into national headlines. Bank employees were caught creating millions of unauthorized accounts to meet unrealistic sales goals. The company faced $3 billion in penalties and a massive public backlash. Yang analyzed Google Trends data, Gallup polls, media coverage, and financial transaction datasets to draw a clear conclusion. In geographic areas with a strong Wells Fargo presence, consumers became measurably more likely to take out mortgages through fintech lenders. This change occurred even though loan costs were nearly identical between traditional banks and digital lenders. In other words, it was not about money. It was about trust. That simple fact hits hard. When big institutions lose public confidence, people do not just complain. They start moving their money elsewhere. According to the study, fintech mortgage use increased from just 2 percent of the market in 2010 to 8 percent in 2016. In regions more heavily exposed to the Wells Fargo brand, fintech adoption rose an additional 4 percent compared to areas with less exposure. Yang writes, "Therefore it is trust, not the interest rate, that affects the borrower's probability of choosing a fintech lender." [...] Notably, while customers may have been more willing to switch mortgage providers, they were less likely to move their deposits. Yang attributes that to FDIC insurance, which gives consumers a sense of security regardless of the bank's reputation. This study also gives weight to something many of us already suspected. People are not necessarily drawn to fintech because it is cheaper. They are drawn to it because they feel burned by the traditional system and want a fresh start with something that seems more modern and less manipulative.

Read more of this story at Slashdot.

04 Jul 2025 2:10am GMT

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04 Jul 2025 2:04am GMT

Electric vehicles claimed a dominant 96.9% market share in Norway in June 2025, with the Tesla Model Y alone accounting for over 27% of all new car registrations. Mobility Portal Europe reports: According to the Norwegian Public Roads Administration (OFV), 17,799 new electric cars were registered in Norway in June out of a total of 18,376 new registrations. In this context, electric vehicles (EVs) held a market share of 96.9%. Compared to June 2024 -- when EVs made up 80% of all new registrations -- this technology increased by 3,790 units. In addition, in May 2025, Norway recorded 4,415 new EV registrations. Last month, only 577 new registrations were for vehicles without fully electric drive systems. Among these were 152 plug-in hybrids (an 83.7% drop compared to June 2024) and 223 other types of hybrids (an 89.1% decline). Over the year, hybrids lost market share, falling from 17% to 2%. Pure combustion engines also further reduced their market presence: 142 new diesel vehicles represented 0.8% of the market share, down from 2% a year earlier, and 57 new petrol vehicles made up 0.3% of the market, compared to 1% in June 2024. "Several campaigns with 0% or very low interest rates on new car purchases significantly boosted sales. The first interest rate cut by Norges Bank helped ensure that many people bought their dream car," said Oyvind Solberg Thorsen, Director of OFV. "It remained to be seen whether Tesla could maintain its strong position, and for how long."

Read more of this story at Slashdot.

04 Jul 2025 1:30am GMT

Ripple Labs is applying for a U.S. national bank charter and a Federal Reserve master account, "following a similar move by stablecoin issuer Circle Internet Group as crypto firms look to be regulated to deepen ties with traditional finance," reports CoinTelegraph. From the report: Ripple CEO Brad Garlinghouse confirmed on X on Wednesday that the company is applying for a license with the US Office of the Comptroller of the Currency (OCC), following an earlier report by The Wall Street Journal. "True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC," he wrote. Garlinghouse said if the license is approved, it would be a "new (and unique!) benchmark for trust in the stablecoin market" as the firm would be under federal and state oversight -- with the New York Department of Financial Services already regulating its Ripple USD (RLUSD) stablecoin. [...] Ripple's Garlinghouse added that the company also applied for a Master Account with the Federal Reserve, which would give it access to the US central banking system. "This access would allow us to hold $RLUSD reserves directly with the Fed and provide an additional layer of security to future proof trust in RLUSD," Garlinghouse said. "Congress is working towards clear rules and regulations, and banks (in a far cry from the years of Operation Chokepoint 2.0) are leaning in," he added, mentioning the conspiracy that the Biden administration sought to cut off crypto from the financial system. Ripple applied for the account through Standard Custody, a crypto custody firm it acquired in February 2024.

Read more of this story at Slashdot.

04 Jul 2025 12:50am GMT

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03 Jul 2025 11:31pm GMT

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