Sean Murray: Welcome back to deBanked news. A lot of people
are wondering as to whether or not the carnage in small
business lending over the last few months could have been
avoided. OnDeck, for example, has experienced an 80% decrease
in its share price since February. They're not alone, IOU
is down almost as much. However, if you look over here, we'll see
Shopify, Square, PayPal, they've all experienced enormous gains,
despite heavily competing in the exact same industry. Why would
that be? Well, for one, the difference is that Shopify is
primarily an e-commerce platform, whereas Square and
PayPal are payments platforms. If there's any lesson to be
learned here, it's that diversification is key.
Johny, what are you hearing out there in the industry right now?
Johny Fernandez: deBanked revealed earlier this month that
there had been layoffs at OnDeck, and we know from their
disclosures that they have been actively negotiating with their
creditors. Yeah. So OnDeck's second quarter earnings call
will take place early the morning of the 29th and the big
question will be, are they poised for a comeback? Eyes are
on the fintech industry to see which direction things are
moving. In the financial district, things are not back to
normal. So where I'm standing right now, it has historically
been known as a very popular office area for the industry.
Usually it's packed with tourists and office workers, but
today, we've seen very few people wearing business attire.
Dassi Cole, who works for Better Accounting Solutions, located
here on Wall Street, says it's been a major change.
Dassi Cole: Foot traffic down on Wall Street specifically from
Broadway, all the way down to Water, it's empty. I mean, it's
not the same in any capacity, how it used to be post-COVID,
dress for sure. I see a lot of business people coming in those
that do come into the office are dressed more casual, and that I
believe stemmed from being at home for four months, not
wearing shoes, being in pajamas, zoom meetings, where you just
have to, you know, put a shirt on to look a little bit
appropriate. But other than that everybody is in summer clothes.
Johny Fernandez: Everyday consumers told deBanked how
they've been adjusting in their own lives.
Local 1: When COVID-19 hit I didn't really buy much because
I'm like, Where am I going? So but now I'm starting to buy
more.
Local 2: I want to give you know the business to local companies,
of course, but I use Amazon.
Local 3: I'm trying to keep my local grocery stores in business
because if I if not, then I'd go to Whole Foods and go to Amazon.
And that's not fair.
Johny Fernandez: Back to Sean's point in the studio. One
reoccurring theme we've heard out here is that the names of
big financial service companies had immediate name brand
recognition, but whether that will continue to work in their
favor as the year goes on is something we'll continue to
monitor. I'm Johny Fernandez with deBanked News. Thanks for
joining and we'll see you next time on deBanked News.