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OCTOBER 21, 2025 |
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Choices, choices: What is the top reason consumers use buy now, pay later (BNPL) to make a purchase? |
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A) Not feeling like they’re taking on debt B) Trust in the provider C) Purchasing something while maintaining a cash cushion D) Easy and convenient application |
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ECONOMIC SENTIMENT |
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Corporate credit quality is causing investor consternation even as bankers overall appear optimistic. While risks to the economy abound, very few headlines reflect it. Faint echoes of the 2023 banking crisis—in which contagion was narrowly averted and economic cataclysm prevented—do nothing to calm investors’ nerves. |
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Zions Bank recently wrote off $50 million related to two commercial loans, and Jeffries was exposed to the bankruptcy of an auto parts supplier. Western Alliance said in August that it’s suing one of its corporate borrowers for alleged fraud. And alongside its earnings release several days ago, JPMorgan noted that it had written off $170 million in losses from the collapse of a subprime auto lender. |
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CRYPTOCURRENCY |
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Erebor, a bank backed by some well-known Silicon Valley investors, has received conditional approval for a national bank charter. It will be a digitally native competitor to lenders that serve the “innovation economy” and some specific industries: Erebor will focus on B2B services for AI, defense, crypto, and manufacturing companies, with offerings for high-net-worth individuals tied to those sectors. |
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In June this year, Erebor applied to be “the most regulated entity conducting and facilitating stablecoin transactions.” It’s the first de novo conditional approval under the Trump Administration’s new Office of the Comptroller of Currency (OCC) commissioner. It plans to accept virtual currencies as collateral for some loans and hold crypto off its balance sheet to facilitate payment operations. |
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CREDIT CARDS |
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American Express’ total revenues increased 11% in Q3 2025, per its earnings release. |
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Increased card member spending, higher net interest income, revolving loan balances, and card fees supported growth, the company said. |
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US consumer network volume increased 9% YoY in Q3.
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International consumer network volume grew 14% YoY.
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Total loans and card member receivables rose 10% YoY.
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And net card fees increased 18% YoY. |
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REPORT |
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Credit card loyalty is waning, making feature innovation the new battleground. Even among satisfied cardholders, 72% plan to apply for a new card within the next year, per Marqeta, as 36 million new accounts open digitally in 2025. The real differentiator will be which features issuers deliver—and how well those align with consumer demand. |
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This deck covers: |
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Our fifth annual study of what emerging credit card features US prospective cash-back credit card users value most.
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How the top US no-annual-fee cash-back credit cards stack up against in terms of these features.
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Which features can set card programs apart and help them gain top-of-wallet status. |
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(EMARKETER subscription required to read the full report) |
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CHART OF THE WEEK |
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Key stat: Over a third (35%) of US adults using genAI for financial advice are looking for help with basic financial education or goal setting, found August data from Intuit. | | | |
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