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Tag: Wells Fargo

  • Wells Fargo Customers Are Missing Deposits

    Wells Fargo Customers Are Missing Deposits

    Wells Fargo customers are reporting missing deposits, with the bank investigating and promising a fix.

    According to ThinkAdvisor, Wells Fargo is aware of the issue and put the following statement on its website:

    “If you’re experiencing an issue with our online services, we apologize for the inconvenience. We’re working quickly to resolve it.”

    In addition, the bank provided the following statement to ThinkAdvisor:

    “Wells Fargo is aware that some customers’ direct deposit transactions are not showing on their accounts, however funds in accounts are accurate and available. We are working quickly on a resolution and apologize for the inconvenience. Customers’ accounts continue to be secure.”

    While certainly inconvenient, it’s at least good to know customer accounts have not been compromised and the issue appears to be a minor technical one.

  • Major Banks Joining Forces to Take on Apple Card, PayPal

    Major Banks Joining Forces to Take on Apple Card, PayPal

    Major banks are reportedly joining forces in an effort to better take on Apple Card and PayPal in the digital wallet market.

    In the era of digital transactions and wallets, traditional banks have found themselves playing second fiddle to tech companies. According to CNBC, several of the biggest banks want to change the status quo and exert more direct influence.

    Bank of America, JPMorgan Chase, and Wells Fargo are among those reportedly looking to work together to create their own digital wallet that will link to customers’ debit and credit cards.

    The new cards reportedly could launch later in 2023, with both Visa and Mastercard on board.

    The banks are likely driven by a desire to maintain a more direct relationship with the customer, along with the possibility of selling them additional services as a result of that relationship. Banks are probably also somewhat leery of tech deals that leave them with the short end of the stick. For example, Goldman Sachs has reportedly lost somewhere between $1 to $3 billion on the Apple Card deal.

    Nonetheless, entering the market and competing with established tech companies won’t be easy, experts warn.

    Bernstein analyst Harshita Rawat said banks have “likely always had PayPal envy,” but that didn’t mean the way forward is going to be easy.

    “It simply takes a very long time, a killer customer experience (which needs to be better than incumbents, not just similar), and a compelling merchant value proposition to build the two-sided network effects in payments to achieve scale,” Rawat said in a note to clients.

  • Pfizer Poised to Raise COVID Vaccine Prices Significantly

    Pfizer Poised to Raise COVID Vaccine Prices Significantly

    Pfizer is preparing to raise prices for its COVID-19 vaccine, potentially buoying the company’s revenue for years.

    Pfizer is one of the leading manufacturers of COVID vaccines, but demand for booster shots has been lower than expected. According to Reuters, the company is looking to make up for that slack demand by raising prices as much as 4x over current prices.

    The company plans to charge anywhere between $110 to $130 a dose once the US transitions from subsidized dosages to a commercialized market. At the same time, Pfizer plans to honor existing agreements it has through 2023.

    Wells Fargo analyst Mohit Bansal said the price hikes could add billions to Pfizer’s annual revenue.

    “This is much higher than our assumption of $50 per shot, and even assuming $80 per shot net price in high-income countries, we see $2 per share upside to our estimates” as a result of the price increase, Bansal wrote in a research note.

  • Alphabet Is Blockchain’s Biggest Corporate Investor

    Alphabet Is Blockchain’s Biggest Corporate Investor

    Alphabet is the biggest corporate investor in blockchain and crypto technology among the top 100 public companies over the last ten months.

    The crypto market is currently taking a beating, but that hasn’t stopped companies of all sizes from continuing to invest in crypto and blockchain tech. According to Blockdata, Alphabet is the top investor in blockchain technology among the top 100 public companies.

    Between September 2021 and June 2022, Google invested a staggering $1.5 billion in blockchain technology. Asset manager BlackRock came in second, with $1.17 billion. Morgan Stanley rounded out the top three with $1.11 billion.

    Other top companies included Microsoft, Samsung, Goldman Sachs, PayPal, LG, Wells Fargo, and more.

    Despite the current downturn, the continued support and investment from some of the world’s largest companies will help ensure the technology’s continued growth and adoption.

  • Amazon Is the Number One US Apparel Retailer, Passing Walmart

    Amazon Is the Number One US Apparel Retailer, Passing Walmart

    What was years in the making has finally happened, with Amazon passing Walmart to become the largest apparel retailer in the US.

    Experts had been predicting Amazon would overtake Walmart for years. Like many other transformations, however, the pandemic is what finally pushed the online giant across the finish line. As individuals remained in lockdown and avoided crowded stores, Amazon’s business went into overdrive.

    According to Wells Fargo, via CNBC, that was enough to help it surpass Walmart in the apparel space, with its apparel and footwear growing an estimated 15% in 2020 to more than $41 billion. That gives it a solid 20% to 25% lead over Walmart.

    “This represents highly impressive 11%-12% share of all apparel sold in the U.S. and 34%-35% share of all apparel sold online,” wrote Wells Fargo analysts Ike Boruchow and Tom Nikic. “We now estimate Amazon will surpass $45 billion in apparel/footwear sales in 2021.”

    Interestingly, the outlook was not all roses for Amazon, as there are still some high-profile brands that refuse to sell on the online store. Much of this is due to the way Amazon approaches the business, focusing on sales over helping companies build their brand.

    “Until Amazon becomes a platform that works with companies to elevate brands, rather than viewing the relationship as transactional, companies who are fiercely protective of their brands (e.g. Nike), will not sell to Amazon,” said the analysts.

  • Wells Fargo Bans TikTok From Company Phones

    Wells Fargo Bans TikTok From Company Phones

    The hits keep on coming for TikTok as Well Fargo has instructed employees to delete the social media app from their phones.

    TikTok has been under siege over the last few months in regard to numerous privacy and security issues. The company has been sued for allegedly capturing and uploading video to Chinese servers without consent, violating child privacy and censoring users deemed ‘poor’ or ‘ugly.’ The app has been labeled ‘fundamentally parasitic,’ and has been banned from the phones of government agencies and military personnel. The Trump administration is even mulling a widespread ban of the app.

    Amidst these issues, Wells Fargo has told some employees to delete the app from their phones, citing privacy concerns surrounding it. The ban appears to primarily impact a small number of employees with corporate devices.

    “Due to concerns about TikTok’s privacy and security controls and practices, and because corporate-owned devices should be used for company business only, we have directed those employees to remove the app from their devices,” the company said in a statement to CNN Business.

    Given how popular the app has become, any widespread ban will likely run into resistance. Nonetheless, the tide seems to be turning against TikTok.

  • Mortgage Rates Decline; Rises Loom in Future

    As the spring season rolls in and the winter doldrums roll out, people are finally exiting their homes and exploring the world once again. Luckily for those recovering from an intense winter hibernation, the economy shows positive signs for the first quarter. Job growth increased by 192,000 for the month of March, and unemployment remained at 6.7 percent. More important for future home-buyers, though, was news that mortgage rates are slowly declining despite fears of an increase in 2014.

    Recent reports show that average mortgage rates fell from 4.5 percent to 4.375 percent at the beginning of April, a much-needed positive sign for the housing market.

    While most big banks are reporting a drastic decline in the number of mortgage originations for the first quarter, with Wells Fargo reporting a 67 percent decline in originations and JP Morgan reporting a 68 percent decline, most signs showcase that for the month of April, more homeowners are coming onto the market and expressing interest in purchasing a new home.

    The Mortgage Bankers Association has reported a 13 percent increase in home-purchase mortgage applications over the past five weeks, hitting a two-month high.

    Along with a recent increase in home-buying applications, US consumer confidence ratings hit its highest point in the past six years, indicating that consumers feel secure in the current economic climate and are more willing to make large purchases.

    The surge in demand for houses and the rise in mortgage applications may simply be a brief blip on the radar, however.

    Mortgage rates increased over the past year most likely in response to news that the Federal Reserve was going to draw-back on its bond-buying program, pulling $10 billion from the economy in monthly installments until the average monthly investment dropped from $85 billion to $55 billion.

    Once this transition is complete, much economic pundits believe mortgage rates will increase. Because of this, many first-home-buyers may be rushing to the market now to circumvent potential higher mortgage rates in the future.

    If the Fed is planning on pulling $30 billion out of the US economy each month soon, it should hope that banks keep mortgage rates low. Lower mortgage rates spur increased consumer spending, a sector which accounts for 70 percent of the US GDP.

    Image via YouTube

  • Small Businesses Struggle With Finding New Customers More Than Anything Else [Report]

    Gallup and Wells Fargo recently released results from their Q1 2014 Small Business Index.

    The study found that attracting customers, targeting business opportunities, and finding new business were among the top challenges for small business owners in the U.S. 21% of owners cited these (combined) as the top challenge. Behind these, but significantly lower in percentage, were government regulation, the economy, healthcare/Obamacare, hiring qualified/good staff and retaining them, financial stability/cash flow, and costs/fees of running business/having enough money for capital investment.

    In other words, the biggest challenge facing small business, by far, is simply getting new customers.

    eMarketer has put out some charts based on data from the study. Here’s a look at the challenges, and how businesses view them:

    With that data in hand, eMarketer turns to March data from Huzzah Media about the most successful marketing tactics that help small businesses “grab prospects’ attention”.

    Friend referrals is by far the most successful at 52.2%, followed by advertising at 33.2%. Coupons and press articles have surprisingly little success at 3.5% and 1.3% respectively. Check out the report for the full graph and further analysis.

    The data for the Small Business Index comes from telephone interviews with 603 small business owners, conducted from January 2nd to January 6th.

    Image via eMarketer