This week, Jamie Dimon published his widely followed Chairman’s Letter. We deep-dive into this special topic in this newsletter.

US payrolls rose by 196 k in March and the unemployment rate remained at 3.8%. The data signal that the labor market is steady even if job gains are moderating from last year’s pace.

Source: Bloomberg, PeerIQ

In regulatory news, the heads of the OCC and the FDIC have indicated that they could complete CRA reform by early next year. Read our prior analysis on CRA reform and its implications here.


FinTech fund raising and M&A continues. TradeWeb has raised $1.1 Bn in its IPO. TradeWeb also obtained a $500 Mn credit line and plans to use the proceeds for technology acquisitions.

Affirm, a point-of-sale credit provider, has raised $300 Mn in a Series F round led by Thrive Capital. Affirm has raised $800 Mn in equity funding so far and originated $2 Bn in loans in 2018.

Pagaya, an AI-powered asset manager, has raised $25 Mn in a Series C round led by Oak HC/FT to branch out into real estate, corporate credit, mortgages, and other asset classes.

Novo, an SME bank, has raised $4.8 Mn in its seed round to launch free business checking accounts.

Join PeerIQ at LendIt!

PeerIQ will be at LendIt, Stop by Booth 1640!

PeerIQ, the leading risk and liquidity management platform in consumer credit, is showcasing its latest analytics tools for both whole loan investors and originators, including:

• Valuation of “pass-through” CUSIPs made up of marketplace loans

• Stress test scenario calculator to forecast cash flows in many future states

• Curve extraction from TransUnion market data or originator-specific history

• Automated benchmarking to quantify portfolio alpha

PeerIQ’s CEO Ram Ahluwalia will be speaking at the LendIt conference on the What are the Data Points Telling us about the Current Credit Market panel on Monday 4/8 at 4 pm PDT. 

Please stop by Booth 1640 or request a meeting!

Highlights from Jamie Dimon’s Letter to Shareholders

Jamie Dimon published his annual letter to shareholders. We look at some highlights below:

  • The banking system, and JPM in particular, is over-capitalized – Under the Fed’s most extreme stress-testing scenario, where 35 of the largest American banks bear extreme losses (as if each were the worst bank in the system), the combined losses are about 6% of the total loss absorbing resources of those 35 banks. The observation suggests capital can be deployed into lending or returned to shareholders but is tied up in regulatory capital. 

Source: JPM, PeerIQ

Here are some of the Chairman’s highlights:

  • Good regulation can help America grow and improve its financial stability. Jamie’s policy recommendations include:
    • Boost economic growth via mortgage reform: Reducing onerous and unnecessary origination and servicing requirements would dramatically improve the cost and availability of mortgages to consumers – boosting GDP 20 bps a year.
    • Stress-testing needs rationalization: Stress testing matters. However, The CCAR testing framework and stress testing assumptions (e.g., continuation of dividend payments) are arbitrary and unnatural.
  • Non-Banks need to be monitored and may struggle to lend during a recession
    • The growth in non-bank mortgage lending, student lending, and consumer lending is accelerating and is not yet a systemic risk – but must be monitored. Jamie expresses concerns that non-bank will struggle to lend during difficult times leaving borrowers “stranded”. 
  • JPM is investing billions in technology to compete – the cloud, AI, ML and digital banking
    • JPM is refactoring its applications to embrace the cloud – a turnaround in JPM’s position from a few years ago.
    • JPM customers can now open a bank account online in under 5 minutes and can reduce their mortgage closing times to 3 weeks.
    • The bank now has 49 Mn active digital customers, including 33 Mn active mobile customers
    • JPM is looking at fintechs in the US and in China as not just opportunities but also looming competition.


PeerIQ’s CEO Ram Ahluwalia will be speaking at the LendIt conference on the What are the Data Points Telling us about the Current Credit Market panel on Monday 4/8 at 4 pm PDT. 

Ram will also be speaking on the Ocrolus Fight Fraud with Fintech panel on Tuesday 4/16 at 6:30 pm EDT. Fraud experts will discuss cutting edge solutions to fight fraud, technology trends and industry insights. You can RSVP here to attend the panel discussion.

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