1 00:00:00.000 --> 00:00:02.910 Sean Murray: Today on deBanked News. Jerry Seinfeld says New 2 00:00:02.910 --> 00:00:06.960 York is not dead. Is he right? Intuit is climbing up the small 3 00:00:06.960 --> 00:00:10.200 business lending charts and a loan servicing software company 4 00:00:10.320 --> 00:00:13.440 will tell us what trends he's seeing across the industry. It's 5 00:00:13.440 --> 00:00:16.080 all coming up and more. Let's go over to Johny Fernandez, who can 6 00:00:16.080 --> 00:00:18.600 tell us what's the deal with New York. 7 00:00:19.020 --> 00:00:20.880 Johny Fernandez: Hey Sean, So I'm standing right in front of 8 00:00:20.880 --> 00:00:24.120 Tom's restaurant here on the Upper West Side, or as it's 9 00:00:24.120 --> 00:00:26.970 known as, the Seinfeld restaurant. Now, throughout the 10 00:00:26.970 --> 00:00:29.580 month, we've been to different parts of New York City. And 11 00:00:29.580 --> 00:00:32.550 today we're here to ask New Yorkers if they agree with Jerry 12 00:00:32.550 --> 00:00:35.430 Seinfeld. The latest New York Times article, the famous 13 00:00:35.430 --> 00:00:38.970 comedian recently hit back at different voices claiming that 14 00:00:38.970 --> 00:00:42.360 the 2020 pandemic permanently destroyed New York City. 15 00:00:50.430 --> 00:00:53.550 One of Jerry's counter argument points is that the attitude 16 00:00:53.550 --> 00:00:57.090 personality and energy of a place like New York City can't 17 00:00:57.090 --> 00:01:00.030 be matched through an internet connection. So he says that in 18 00:01:00.030 --> 00:01:03.630 order for you to experience the inspirational energy that New 19 00:01:03.630 --> 00:01:07.260 York has to offer, well, you have to be here. So we did just 20 00:01:07.260 --> 00:01:09.780 that, we asked New Yorkers, if they agree with Jerry. 21 00:01:09.000 --> 00:01:12.510 Speaker: I appreciate the sentiment, although I feel like 22 00:01:12.510 --> 00:01:16.530 it's easy for him to say, given the size of his apartment here 23 00:01:16.530 --> 00:01:19.890 in Manhattan, and the option to leave Manhattan and go to a 24 00:01:19.890 --> 00:01:21.660 place outside of the city. 25 00:01:21.720 --> 00:01:24.960 [New York] has to definitely work on cleanliness, I think 26 00:01:24.960 --> 00:01:29.580 maybe safety. I think those are the main factors that are going 27 00:01:29.580 --> 00:01:33.960 to dictate on whether New York is gonna come back from what it 28 00:01:33.960 --> 00:01:34.260 was. 29 00:01:34.260 --> 00:01:37.620 I think it's actually picking up more than a lot of other states 30 00:01:37.620 --> 00:01:41.520 are. And I see people walking around and still kind of acting 31 00:01:41.520 --> 00:01:45.930 the way that New York was before but I feel like people are a lot 32 00:01:45.930 --> 00:01:46.650 nicer now. 33 00:01:46.000 --> 00:01:49.330 Johny Fernandez: So despite what people are saying now, we 34 00:01:49.330 --> 00:01:52.660 recently reported that major tech hubs are bullish on New 35 00:01:52.660 --> 00:01:56.020 York. We recently told you that Facebook and Amazon, they've 36 00:01:56.020 --> 00:01:58.960 acquired collectively more than a million square feet of office 37 00:01:58.960 --> 00:02:01.960 space here in Manhattan. And we know that Facebook will be 38 00:02:01.960 --> 00:02:05.440 moving into the old post office near Penn Station, and someone 39 00:02:05.440 --> 00:02:09.430 that's not happy about this is Jerry's old archnemesis Newman. 40 00:02:09.610 --> 00:02:12.640 But that's a story for a different time. As for now 41 00:02:12.640 --> 00:02:15.070 that's all here from the Seinfeld diner. I'm Johny 42 00:02:15.070 --> 00:02:17.680 Fernandez with deBanked News. Sean, we're gonna send it back 43 00:02:17.680 --> 00:02:18.100 over to you. 44 00:02:18.720 --> 00:02:22.530 Sean Murray: That's gold Johny, gold! We've previously reported 45 00:02:22.530 --> 00:02:25.830 that companies like Square, Shopify, and PayPal, have 46 00:02:25.830 --> 00:02:28.080 propelled themselves to the online small business lending 47 00:02:28.080 --> 00:02:31.230 leaderboards, while competitors that have dependent primarily on 48 00:02:31.230 --> 00:02:34.320 lending as their core business have suffered setbacks this 49 00:02:34.320 --> 00:02:37.110 year. Well, here's another to think about: Intuit, through 50 00:02:37.110 --> 00:02:40.950 their subsidiary, QuickBooks Capital, has already funded $683 51 00:02:40.980 --> 00:02:43.980 million in small business loans since they launched the program 52 00:02:43.980 --> 00:02:47.070 in 2017. Although they tightened credit during the early pandemic 53 00:02:47.070 --> 00:02:50.580 months to focus more on PPP loans, Intuit recently reported 54 00:02:50.580 --> 00:02:53.850 that QuickBooks Capital has been a big driver of growth. Combined 55 00:02:53.850 --> 00:02:56.610 with TurboTax and the QuickBooks accounting software, Intuit 56 00:02:56.610 --> 00:02:59.490 would seem well positioned here. But here's another perspective, 57 00:02:59.670 --> 00:03:02.880 Trey Markel at Centrex Software, recently told us what he's 58 00:03:02.880 --> 00:03:05.100 seeing out there and the online lending industry. 59 00:03:05.480 --> 00:03:07.430 Trey Markel: A few statistics that I thought were a little 60 00:03:07.430 --> 00:03:12.740 interesting is this exact time last year, 2019, January to 61 00:03:12.740 --> 00:03:16.700 August, and this time, this year, January to August, we're 62 00:03:16.700 --> 00:03:20.690 about 11% down in total funding deals Centrex Software 63 00:03:20.690 --> 00:03:25.340 portfolio-wide. But what's interesting is we're 28% down in 64 00:03:25.370 --> 00:03:29.300 the funding amounts. So the actual deals that were funded is 65 00:03:29.300 --> 00:03:33.080 about a 10% 11%, down on the year from this time to last year 66 00:03:33.080 --> 00:03:36.980 at this time, but almost 30% down on the actual amounts that 67 00:03:36.980 --> 00:03:39.440 are being funded. Right, which I guess makes sense, right? I 68 00:03:39.440 --> 00:03:41.630 mean, what we have, more requests coming in, but we have 69 00:03:41.630 --> 00:03:44.810 less approvals coming in. A few other statistics that we found 70 00:03:44.810 --> 00:03:50.060 kind of interesting was funded deals versus unfunded deals, you 71 00:03:50.060 --> 00:03:53.000 know, typically here at Centrex Software, we have a very 72 00:03:53.030 --> 00:03:59.270 consistent rate of about 20% of deals overall that are funded. 73 00:03:59.510 --> 00:04:04.190 So if we have you know, 100,000 advances or deals come into the 74 00:04:04.190 --> 00:04:07.130 CRM, 20% of those we see month to month typically get funded. 75 00:04:07.400 --> 00:04:10.070 During the pandemic, right about February, March, that took a 76 00:04:10.070 --> 00:04:13.400 really nice hit down to 9%. Right, so out of all the 77 00:04:13.400 --> 00:04:15.470 advances that were created within Centrex Software 78 00:04:15.500 --> 00:04:18.770 portfolio-wide, only 9% of those advances were actually funded. 79 00:04:18.980 --> 00:04:21.530 And that's where it kind of bottomed out from our normal 80 00:04:21.530 --> 00:04:24.830 20%. And then that only happened for about two months, like I 81 00:04:24.830 --> 00:04:28.790 said, and then we saw it shoot back up to 16%. And stay around 82 00:04:28.790 --> 00:04:32.990 the 14,15, 16% for the last two or three months. So definitely 83 00:04:32.990 --> 00:04:36.440 see kind of a nice hit as far as the ratio of total advances to 84 00:04:36.470 --> 00:04:38.570 funded advances Centex Software-wide. 85 00:04:38.810 --> 00:04:41.030 Sean Murray: Thanks,Trey. And thank you for watching. This is 86 00:04:41.030 --> 00:04:44.720 Sean Murray, yada yada yada. deBanked News.