đź’ł Give the people credit
![_Give the people credit cards...and Oatly? [pixelfit/E+ via GettyImages]_](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/2ggGmt4yrCOZEJQNWWIAzu_1_GettyImages-695573446.jpg)
Hey Snackers,
The best part of returning to a pet-friendly office: hanging with all the pandemic pups that your coworkers adopted during lockdown. Just don't pet them.
Crypto prices rebounded yesterday after Wednesday's big selloff. Bitcoin, Ethereum, and Dogecoin all jumped. What fell: jobless claims, which hit a new pandemic low last week.
Chase and other major banks will reportedly give credit cards to people with no credit scores
No more FICO scores on Hinge... even 800s. JPM Chase, Wells Fargo, and other banks are taking the “history” out of credit history. When reviewing credit card applications, banks will consider deposit account info for people with no credit, according to WSJ's #PFWTM — and share that info with each other. Think: $$$ in checking and savings accounts, and overdraft history. It's part of a gov-backed initiative to extend credit to underserved people. The pilot, aimed at financially responsible people without credit scores, could launch this year.
- To build credit, you need to borrow. Think: credit card spending, car or student loans, or a mortgage. To build good credit and avoid interest, you need to pay IOUs on time.
- The "chicken or the egg" of the banking world: When you've never had a credit card, and need a credit score to get a credit card with your bank (womp).
Give the people credit... 53M adults in the US don’t have credit scores — many only pay with cash/debit, or are new to the US. If this program launches, Chase could check your Wells Fargo checkings when reviewing your Chase card app. That means millions more Americans could get access to credit — and it could be a boon for banks and credit card companies.
- Banks make $$$ from merchants each time you swipe. That "Swipe Tax" is why purchase minimums exist (the bodega doesn't want plastic for a $2 muffin).
- Banks also earn interest on overdue balances. But thanks to stimulus checks and #lockdownlife, Americans have reduced their credit card debt (big time): balances are now $157B lower than pre-pandemic.
Credit = opportunity... Good credit can help people take out cheaper loans like mortgages. Homeownership has been one of the greatest contributors to wealth creation for families. But mortgages are hard to get without a credit score. In 2015, Black and Hispanic adults in the US were more likely than white or Asian adults to lack credit scores — and they're still more likely to be denied mortgages. Increasing credit access to historically disadvantaged communities is key to narrowing the racial wealth gap.
Oatly, the spunky company that invented oat milk, raises $1.4B in its IPO
Starbucks is out of oat milk... What else is new? Oat milk icon Oatly raised $1.4B in its IPO on Wednesday, snagging a frothy $10B valuation — more than Beyond Meat's market cap. Yesterday, Oatly shares soared 19% during their first day on the Nasdaq. The IPOat eased investors' concerns about IPOs, which have been underwhelming recently. A few things investors were sweet on...
- Sales: Sales of Oatly's sustainable milk ~2X'd in 2020 from 2019 .
- Starbs: In March, Oatly won the milk lottery: a nationwide rollout at Starbucks.
- Stars: The Swedish company is backed by celebs like Oprah, Natalie Portman, and Jay-Z.
My oat milk brings all the boys... to the Starbs. Oat milk is a barista staple today, but for decades after Oatly was born in 1994, it was pretty obscure. Wild stat: the founder of Oatly literally invented oat milk. In 2017, Oatly expanded to the US and launched a major rebrand. That hip, spunky branding has been key to its growth. Oatly's marketing strategy = anti-marketing (see: these murals, these cartons, and this Super Bowl ad). And it's provocative...
Provocative marketing comes with risks... Oatly highlighted its "provocative and unconventional marketing" as a business risk, which could expose it to more scrutiny from food regulators and lawsuits from dairy lobbyists. Oatly's slogan: "It's like milk, but made for humans." But for Oatly, the branding strategy has also come with big rewards. Oat milk is oat milk, but people seek out Oatly specifically, thanks to its "cool brand" factor. That's likely why Starbs chose to feature Oatly, too.
What else we’re Snackin’
- Crypto: The US Treasury wants every crypto transfer larger than $10K to be reported to the IRS — we smell "tax purposes."
- Peace: The CEO of TikTok-owner ByteDance is stepping down. He'll have more time for "reading, listening to music, and daydreaming."
- Woof: Petco swung to a profit last quarter and boosted its forecast, expecting the puppy-palooza to continue.
- IFLIP: IHOP is offering $150K to the first franchisees who open a Flip'd, its fast-casual spinoff which launches in July (expect "pancake bowls").
Friday
- Earnings expected from John Deere, Foot Locker, and Supreme-owner VF Corp
- Apple CEO Tim Cook testifies at the Epic trial
Authors of this Snacks own shares of: JPM Chase
ID: 658097