1 00:00:00.270 --> 00:00:02.820 Sean Murray: Welcome back to deBanked news. A lot of people 2 00:00:02.820 --> 00:00:04.920 are wondering as to whether or not the carnage in small 3 00:00:04.920 --> 00:00:06.990 business lending over the last few months could have been 4 00:00:06.990 --> 00:00:10.860 avoided. OnDeck, for example, has experienced an 80% decrease 5 00:00:10.860 --> 00:00:14.790 in its share price since February. They're not alone, IOU 6 00:00:14.790 --> 00:00:17.790 is down almost as much. However, if you look over here, we'll see 7 00:00:17.790 --> 00:00:22.530 Shopify, Square, PayPal, they've all experienced enormous gains, 8 00:00:22.590 --> 00:00:26.580 despite heavily competing in the exact same industry. Why would 9 00:00:26.580 --> 00:00:29.820 that be? Well, for one, the difference is that Shopify is 10 00:00:29.820 --> 00:00:32.490 primarily an e-commerce platform, whereas Square and 11 00:00:32.490 --> 00:00:35.760 PayPal are payments platforms. If there's any lesson to be 12 00:00:35.760 --> 00:00:38.310 learned here, it's that diversification is key. 13 00:00:39.390 --> 00:00:42.060 Johny, what are you hearing out there in the industry right now? 14 00:00:43.080 --> 00:00:45.180 Johny Fernandez: deBanked revealed earlier this month that 15 00:00:45.180 --> 00:00:48.030 there had been layoffs at OnDeck, and we know from their 16 00:00:48.030 --> 00:00:51.210 disclosures that they have been actively negotiating with their 17 00:00:51.210 --> 00:00:54.870 creditors. Yeah. So OnDeck's second quarter earnings call 18 00:00:54.870 --> 00:00:58.080 will take place early the morning of the 29th and the big 19 00:00:58.080 --> 00:01:01.920 question will be, are they poised for a comeback? Eyes are 20 00:01:01.920 --> 00:01:04.650 on the fintech industry to see which direction things are 21 00:01:04.650 --> 00:01:08.130 moving. In the financial district, things are not back to 22 00:01:08.130 --> 00:01:11.190 normal. So where I'm standing right now, it has historically 23 00:01:11.190 --> 00:01:14.580 been known as a very popular office area for the industry. 24 00:01:14.730 --> 00:01:17.730 Usually it's packed with tourists and office workers, but 25 00:01:17.730 --> 00:01:20.520 today, we've seen very few people wearing business attire. 26 00:01:25.100 --> 00:01:28.670 Dassi Cole, who works for Better Accounting Solutions, located 27 00:01:28.670 --> 00:01:32.090 here on Wall Street, says it's been a major change. 28 00:01:32.120 --> 00:01:35.060 Dassi Cole: Foot traffic down on Wall Street specifically from 29 00:01:35.060 --> 00:01:39.020 Broadway, all the way down to Water, it's empty. I mean, it's 30 00:01:39.020 --> 00:01:42.320 not the same in any capacity, how it used to be post-COVID, 31 00:01:42.770 --> 00:01:46.130 dress for sure. I see a lot of business people coming in those 32 00:01:46.130 --> 00:01:49.790 that do come into the office are dressed more casual, and that I 33 00:01:49.790 --> 00:01:52.640 believe stemmed from being at home for four months, not 34 00:01:52.640 --> 00:01:55.940 wearing shoes, being in pajamas, zoom meetings, where you just 35 00:01:55.940 --> 00:01:58.160 have to, you know, put a shirt on to look a little bit 36 00:01:58.160 --> 00:02:01.640 appropriate. But other than that everybody is in summer clothes. 37 00:02:01.720 --> 00:02:04.150 Johny Fernandez: Everyday consumers told deBanked how 38 00:02:04.150 --> 00:02:06.370 they've been adjusting in their own lives. 39 00:02:06.430 --> 00:02:09.820 Local 1: When COVID-19 hit I didn't really buy much because 40 00:02:09.820 --> 00:02:13.300 I'm like, Where am I going? So but now I'm starting to buy 41 00:02:13.300 --> 00:02:13.570 more. 42 00:02:13.630 --> 00:02:16.300 Local 2: I want to give you know the business to local companies, 43 00:02:16.330 --> 00:02:18.280 of course, but I use Amazon. 44 00:02:18.810 --> 00:02:23.850 Local 3: I'm trying to keep my local grocery stores in business 45 00:02:23.910 --> 00:02:28.110 because if I if not, then I'd go to Whole Foods and go to Amazon. 46 00:02:28.410 --> 00:02:29.520 And that's not fair. 47 00:02:29.630 --> 00:02:32.180 Johny Fernandez: Back to Sean's point in the studio. One 48 00:02:32.180 --> 00:02:35.450 reoccurring theme we've heard out here is that the names of 49 00:02:35.450 --> 00:02:38.600 big financial service companies had immediate name brand 50 00:02:38.600 --> 00:02:41.720 recognition, but whether that will continue to work in their 51 00:02:41.720 --> 00:02:45.050 favor as the year goes on is something we'll continue to 52 00:02:45.050 --> 00:02:49.430 monitor. I'm Johny Fernandez with deBanked News. Thanks for 53 00:02:49.430 --> 00:02:52.730 joining and we'll see you next time on deBanked News.