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Blogs by Christine Pratt

March 14, 2017

A recent article in the American Banker asked the question “Is it OK for lending algorithms to favor Ivy League schools?” It begins by saying that much of the energy behind the fintech movement (to become chartered banks) comes from its promise of financial inclusion. Unfortunately, that is really not the goal of the fintech, aka alternative lender, movement—making money is. And what is the fintech plan for lending? It’s pretty simple actually.

August 15, 2016

On July 29, 2016 the Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution Letter seeking comments on proposed changes to 2008 guidance for third-party lending. Since the FDIC’s role in regulation is to insure customer deposits against bank failures, its 2008 guidance spoke to third-party dangers that could cause banks to fail and what measures and due diligence might need to be in place to prevent losses due to these relationships. It was primarily directed at outsourcing providers.

February 24, 2016

Two recent articles—one in Reuters and the other in PYMNTS—tell a distressing tale of just one of China’s person-to-person lenders’ fraud schemes that in 2015 wiped out the investments of 900,000 individuals for a total of US$7.6 billion.

December 8, 2015

A recent American Banker article entitled “Is Regulation the Stumbling Block to Reaching Underbanked?” asked the right question. Unfortunately, the answer as presented was not as right. The article described a U.S. Treasury Department forum to help the banking industry accelerate financial inclusion. Financial inclusion is a term describing the unbanked or underserved consumers’ need for access to basic financial support.

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Christine Pratt is a senior analyst at Aite Group, specializing in lending with particular emphasis on credit risk and process management technologies for Aite Group’s Retail Banking & Payments segments. She brings to Aite Group a strong research and consulting background as well as hands-on experience developed working within financial institutions. Ms. Pratt has been widely quoted in national media and industry publications such as The Wall Street Journal, Forbes, American Banker, Bank Technology News, Bank Systems & Technology, and Credit Union News.