[TE Article Summary] 1st June '17, Thoroughly modern mutual - Eastern Bank:a 100-yea-old lender becomes a tech pioneer
http://www.economist.com/news/finance-and-economics/21722889-startup-it-has-spun-may-help-other-community-banks-their-it
Thoroughly modern mutual
Eastern Bank: a 199-year-old lender becomes a tech pioneer
A startup it has spun off may help other community banks with their IT headaches
Print Edition, Finance and economics
June 1st, 2017, Washington DC
Summary
1. Despite its effort to hold the asset below the threshold, Eastern Bank had to pay for $15m red tape cost, one-sixth of its pre-tax earnings.
2. Eastern is small enough to be called as "a community bank", but also has enough money to invest in IT.
3. Eastern set up an incubator, Eastern Labs, through which it span off its first start-up, Numerated Growth Technologies raising $9m from Venrock, a Silicon Valley venture-capital firm.
4. Numerated is taking a platform for automatic lending which lent around $100m in 18 months before spin-off, at three times the pace for the same loans
5. The platform has been rented by three other banks with flexibility built by technicians and bankers' collaboration.
Words and Expressions
1. red tape: excessive bureaucracy or adherence to rules and formalities, especially in public services.
2. wherewithal: money or other means needed for a particular purpose
3. boon: a thing that is helpful or beneficial
Thoroughly modern mutual
Eastern Bank: a 199-year-old lender becomes a tech pioneer
A startup it has spun off may help other community banks with their IT headaches
Print Edition, Finance and economics
June 1st, 2017, Washington DC
Summary
1. Despite its effort to hold the asset below the threshold, Eastern Bank had to pay for $15m red tape cost, one-sixth of its pre-tax earnings.
2. Eastern is small enough to be called as "a community bank", but also has enough money to invest in IT.
3. Eastern set up an incubator, Eastern Labs, through which it span off its first start-up, Numerated Growth Technologies raising $9m from Venrock, a Silicon Valley venture-capital firm.
4. Numerated is taking a platform for automatic lending which lent around $100m in 18 months before spin-off, at three times the pace for the same loans
5. The platform has been rented by three other banks with flexibility built by technicians and bankers' collaboration.
Words and Expressions
1. red tape: excessive bureaucracy or adherence to rules and formalities, especially in public services.
2. wherewithal: money or other means needed for a particular purpose
3. boon: a thing that is helpful or beneficial
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