Today In Payments: Economists Predict Recovery Will Take Two Years Or More; Google Faces Lawsuit In Australia

In today’s top news, economists say the U.S. economy could take two years to recover, and Google faces a lawsuit in Australia over its use of personal data. Plus, Wells Fargo will be cutting costs in response to the financial crisis.

Poll: Economists Predict Two-Plus Years For US Economy To Recover

As lockdowns resume in many U.S. states from a surge in coronavirus cases, a poll suggests the economic recovery has slowed. Economists warned any job recovery could be reversed as COVID-19 cases climb in the U.S. — with reports of more than 2,600 new cases every hour, the highest rate in the world.

Google Faces Lawsuit In Australia Over Use Of Personal Data

As Google CEO Sundar Pichai prepares to appear before Congress Wednesday (July 29) to face antitrust charges, Australia’s competition watchdog has accused the Alphabet Inc. division of misleading consumers to get their personal data for targeted advertising.

Wells Fargo CEO Calls For Cost-Saving Measures, Layoffs

Wells Fargo is engaging in significant cost cutting in a bid to become more lean amid the pandemic-induced financial crisis. The strategy includes layoffs as well as strengthening commercial lending.

EU Banks Prep For $26B In Q2 Loan Losses

European banks are estimating at least 23 billion euros ($26.8 billion) in potential losses in the second quarter as the pandemic keeps taking its toll on financial institutions (FIs).

Lemonade CFO On The Insurance Industry’s ‘Innovator’s Dilemma’

The insurance industry has been defined by decades-old incumbents struggling to modernize amid the weight of legacy infrastructure. But digital-native Insurtech newcomer Lemonade was built digital-first, and not only pays claims in real time but can settle them that way, too. Lemonade Chief Financial Officer Tim Bixby takes Karen Webster inside Lemonade, how it manages its payments workflows and why traditional insurance companies are faced with their own “innovator’s dilemma.”

When FIs Move To The Cloud, It Pays To Start At The Bottom

FIs are embracing cloud technologies to roll out innovative tools and services, but selectively upgrading infrastructure isn’t enough, says Michael Morris, chief technology officer for an Australian FinTech Up. In the latest Digital Banks And The Power Of The Cloud Tracker, Morris discusses why FIs should take a bottom-up approach to upgrading cloud infrastructure or risk getting left behind.

New Report: Why Real-Time Settlement Can Make or Break Main Street Businesses

The pandemic has hit Main Street especially hard and left many entrepreneurs genuinely doubtful about how long they can continue to survive. Among critical difficulties is the cash crunch currently crushing small- to medium-sized businesses (SMBs), which are getting paid slower than they need to pay out funds and suffering as a result. Could instant settlements be the solution?