TUESDAY, FEB. 16, 2021 | IN THIS ISSUE
• U.S. financial technology sector looking up
• Iowa modifies transport rules for heating fuels
• Mercy Medical Center receives strong credit rating
• Women Lead Change announces conference speakers
• CBJ Healthcare Summit replay
• Corridor events, KCRG-TV9 headlines and First Alert Forecast
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Report: Bright outlook for fintech sector investments |
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Last year’s favorable market conditions for companies in the U.S. financial technology sector are likely to continue throughout 2021, according to S&P Global Market Intelligence’s annual Fintech Market Report.
The new report, highlighted in the Business Record, concludes that the fintech sector not only weathered the storm of the COVID-19 pandemic in 2020, but many subsectors benefited from it, due to an increased use of digital channels by consumers. Published by S&P Global Market Intelligence’s Financial Institutions Group Research team, the report spotlights the current state of digital distribution and fintech.
Surges in demand for digital insurance brokers and mobile banking were among the tailwinds for fintech companies, coupled with an ample supply of venture capital and the potential for more IPOs and mergers, and the positive trajectory for the sector is expected to continue.
“By now, the fintech sector is probably on everyone’s radar, but the extent to which customers continue to use digital channels after the pandemic passes remains to be seen,” said Thomas Mason, senior research analyst at S&P Global Market Intelligence. “At the very least, the pandemic has put a spotlight on both the strengths and weaknesses of digital distribution, offering a stress test of the scalability and fault tolerance of these systems. We expect increased digital adoption and the one-stop-shop model to be key themes in 2021, as well as robust IPO and M&A activity in the space."
Key highlights from the report include:
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Digital investing: The economic impact of COVID-19 provided a clear windfall to online brokers as U.S. retail investors who already had accounts traded much more heavily, and first-time investors jumped into the action. Charles Schwab, E-Trade and TD Ameritrade together boosted new accounts in 2020 by 316% in the first quarter and 197% in the second quarter.
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Digital lending: The pandemic has been the most significant shock to the nonbank digital lending industry in the past 10 years. Origination volume in the first three quarters of 2020 declined 36% year-over-year across a core group of companies focused on personal lending, small and medium-sized enterprises lending, and student lending.
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Insurtech: The insurtech space has been largely unfazed by the pandemic, with many startups still able to grow rapidly, secure venture capital and go public. The creation of “full-stack” insurtech companies that both sell and underwrite policies accelerated in 2020, with five property and casualty companies either forming a carrier or announcing the acquisition of one, up from three in 2019 and one in 2018.
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Mobile banking: Customers have increasingly turned to their mobile bank apps for basic banking services since the outbreak of COVID-19, forcing institutions to rapidly adjust digital strategies to fill gaps in their offerings. S&P Global Market Intelligence’s 2020 U.S. mobile banking survey found that nearly 58% of respondents indicated that they visited branches less frequently after the COVID-19 outbreak began in the U.S. Overall, 44% of respondents to the survey indicated that they leaned on their mobile banking apps more frequently as a result of the pandemic.
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Mobile payments: The COVID-19 pandemic has boosted mobile payment adoption in the U.S. and led to record growth among multiple nonbank payment providers. Square’s Cash App saw funds stored in-app grow from $945 million to $1.3 billion in the month of April. PayPal saw net new active accounts nearly double from 3.9 million to 7.4 million in the same month. Both businesses experienced significant growth in users and transaction activity in the months following the initiation of the pandemic.
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Governor eases transport rules for heating fuels |
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Gov. Reynolds signed a disaster proclamation yesterday that eases transport rules for crews and drivers that haul motor and heating fuels.
The proclamation temporarily suspends regulatory provisions of Iowa law pertaining to hours of service for crews and drivers hauling propane, diesel #1, diesel #2, natural gas, and other fuels used for residential, agricultural and commercial heating.
According to a release, the proclamation also temporarily suspends provisions of Iowa law pertaining to the movement of oversize and overweight loads of fuel. High demand, along with hazardous cold weather conditions in the Midwest, have created challenges to access of these fuels.
The proclamation is effective immediately and expires on March 17, 2021, at 11:59 p.m. The proclamation language and rules can be found here.
On Feb. 12, Governor Reynolds signed a proclamation easing the hours of service regulations for propane transporters. The state continues to be in contact with industry to ensure adequate fuel and electricity generation for Iowa.
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Mercy Medical Center receives strong credit rating |
Standard & Poor's (S&P) has assigned Mercy Medical Center an "A-" level credit rating.
The credit analysis factors the financial performance of Mercycare Service Corporation and related organizations, such as Mercy Care Management, Inc.; physician practices; and the Mercy Medical Center Foundation.
The “A-” credit rating reflects Mercy’s improved financial performance for mid-fiscal year 2021. The S&P outlook is listed as stable, reflecting Mercy’s healthy reserves, even as the pandemic has required more complex processes and increased supplies, equipment and personnel costs.
“The COVID-19 pandemic continues to be a rapidly changing situation that is challenging the healthcare sector across the country,” said Nathan Van Genderen, Mercy executive vice president and chief financial officer in a release. “Even so, Mercy has a strong history of consistently meeting or surpassing budget targets identified through a multi-year strategic plan, as well as its leading market position. We feel confident that we’ll see continued growth in our primary care services, as well as specialty care, such as cardiology, orthopedics, urology, gastroenterology and oncology.”
Mr. Van Genderen noted that Mercy has been effective in pursuing more access points for its patients, such as opening the state’s first stand-alone emergency room at Hiawatha Medical Park; expanding its telehealth capabilities; and completing construction on a freestanding ambulatory surgery center.
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Women Lead Change announces 2021 speakers |
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Women Lead Change has released its lineup for the 2021 Women Lead Change All Access ICR Iowa Conference scheduled for May 4.
This year’s conference theme is Joining Voices: Leaders for Equity, and features thought leaders Brit Barron, Gabby Bernstein, Risha Grant, Shellye Archambeau, and Ariane de Bonvoisin.
“Women Lead Change is proud to shine a light on the exceptional challenges facing women at work during a global pandemic. Issues of equity, change management, mental health and well-being are top of mind. We are proud to provide access to ideas and strategies that support a successful way forward,” Tiffany O’Donnell, CEO of Women Lead Change said in a release. “In this virtual format, we are able to engage global teams and have unique ways to engage our audience even when we aren’t all in the same room.”
Find more information about this year's speakers here.
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Replay of CBJ Health Care Summit now available |
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A full replay of the Corridor Business Journal’s 2021 Health Care Summit is now available for viewing.
The summit, originally presented virtually on Friday, April 12, examined national health policy issues and refocused them to the regional level through speakers and panel discussions.
It was presented by Mount Mercy University, with support from University of Iowa Health Care, TrueNorth Companies, UnityPoint Health -- Cedar Rapids, the Eastern Iowa Sleep Center, and HealthPartners UnityPoint Health.
To view the replay of Friday’s summit, click here. |
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Connect with the CBJ
The CBJ’s mission of informing and connecting the Corridor’s business community is more important than ever. Our news operations will continue researching and reporting on the impacts of the COVID-19 pandemic through our multiple distribution channels. Here’s how you can connect with us today and moving forward:
- You can reach our newsroom directly with leads, updates, cancellations, etc. at [email protected].
- Our comprehensive, deep-dive content continues in our weekly CBJ. If you are not a digital subscriber, you can sign up here.
- Our daily news coverage solution is spread throughout the week with our free e-newsletters. If you have not already signed up, you can do so here.
- Updated coronavirus information will also be published on our website, corridorbusiness.com/latest-coronavirus-updates, and through our Facebook, Twitter and LinkedIn channels.
- All of our staff members remain available to assist you. You can find our full contact information at www.corridorbusiness.com/cbj-contact.
Remember: Subscribers can access the digital CBJ anytime and anywhere. Don't remember your password? Please email [email protected] for a password reset.
The CBJ print subscribers can also temporarily have the CBJ mailed to their home. To temporarily switch your address, please send your full temporary mailing address to [email protected]. Please include start and stop dates for the temporary address.
Thank you for your continued support of the Corridor Business Journal.
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Short Term Event Planner
Feb. 17
1 Million Cups, by 1MC Cedar Rapids, 8:30 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MCICR.
1 Million Cups, by 1MC Iowa City, 9 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MillionCupsIC.
Marketing and Business Plans by America’s SBDC Iowa, by Iowa Economic Development Authority, 9 a.m., online. Laurie Pieper from SBDC Iowa will talk about resources available to help develop marketing and business plans. Free. To register, visit bit.ly/3qGwoIy.
COVID-19 Economic Aid Overview, by Small Business Administration, Iowa District Office, 10 a.m., online. Overview of the SBA’s Paycheck Protection Program (PPP), Economic Injury Disaster Loan Program (EIDL), SBA Debt Relief program for its regular loan programs and the Shuttered Venue Operators Grant (SVOG). Free. To participate, visit bit.ly/3jCZ5DZ.
Feb. 18
Understanding Leadership Styles and How They Translate Over Into the Virtual Space, by Cedar Rapids Metro Economic Alliance, 8:30-9:30 a.m., online. This webinar will discuss the four distinct leadership styles and when to use each style with your team members for maximum results. Keynote is Helena Long, of JET Engineering. Free. To register, visit bit.ly/2N9rhlN.
Small Business PPP Assistance Programs Update, by SCORE of East Central Iowa, 11 a.m., online. Jo Eckert, of the Small Business Administration, will present an overview of COVID-19 assistance programs available to small businesses. Free. To register, visit bit.ly/36XWX4B.
Annual Meeting: Hindsight is 2020, by Iowa City Area Business Partnership, 3-5 p.m., online. Gather to celebrate the past year’s accomplishments and look forward to the year ahead. Amy Kristof-Brown, dean of the Tippie College of Business at the University of Iowa, is the keynote. Cost: $55 for a Very Important Partner ticket, $20 for a regular ticket. To register, visit bit.ly/39OsKpk.
Feb. 19
COVID-19 Economic Aid Overview, by Small Business Administration, Iowa District Office, 10 a.m., online. Overview of the SBA’s Paycheck Protection Program (PPP), Economic Injury Disaster Loan Program (EIDL), SBA Debt Relief program for its regular loan programs and the Shuttered Venue Operators Grant (SVOG). Free. To participate, visit bit.ly/3qcHPYP.
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These news items are provided by KCRG-TV9
MidAmerican Energy is asking its customers to conserve their natural gas use as extreme weather conditions are impacting supplies around the country. MidAmerican Energy said its systems are operating as expected but the flow of natural gas to Iowa has been impacted due to frozen wells in the southern U.S. The energy company said it is working with its largest customers to ensure uninterrupted gas service for residential customers.
The company said it expects the issue to resolve itself over the next few days as temperatures rise in the southern United States. MidAmerican is asking customers to consider making minor adjustments, such as lowering the thermostat a few degrees, to help ensure natural gas is available.
These news items are provided by KCRG-TV9
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Your KCRG-TV9 First Alert Forecast |
Plenty of sunshine is expected today along with highs that climb a few degrees above zero. While it's not much, it's one small stepping stone to improvement in this long, cold stretch. Later tomorrow into tomorrow night, a few flurries or snow showers may pass by as a warm front pushes us into the teens for highs. Accumulation from that, if any, looks very minor at this time. This weekend, we are still on track for highs well into the 20s with 30s also possible by Sunday. There's a chance of snow this weekend as well, mainly on Sunday. |
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