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Money Services Business Industry

Money Services Business Industry. 2019. The Market. Evolving Risk. Five Types of State Licensed MSB Activities. Money Transmitter Snapshot. MSB Industry Totals. 2018. Money Services Businesses (MSB) Call Report.

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Money Services Business Industry

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  1. Money Services Business Industry 2019

  2. The Market Evolving Risk

  3. Five Types of State Licensed MSB Activities

  4. Money Transmitter Snapshot

  5. MSB Industry Totals 2018

  6. Money Services Businesses (MSB) Call Report • Launched in 2017, collects quarterly activity and financial data from MSB companies, including nationwide totals for money transmission, stored value, payment instruments and virtual currency transactions. • Applications • MSB Examiner Report • Data discovery tool: Provides interactive visualizations that allows regulators to sort, filter and run reports.

  7. 2018 MSB Market Share

  8. 2018 Nationwide MSB Market Totals

  9. 2017 vs. 2018 MSB Market Comparison

  10. Most Money Transmitters are New *Based on date of corporate formation

  11. Geographic Footprint

  12. State Money Transmitter Market Share

  13. Money Transmitter Headquarter Locations • More than 60% of all money transmitters headquartered in just 7 states (CA, FL, GA, WA, NJ, IL, TX) • 73% of all money transmitters located in 10 states

  14. Money Transmitter City Data • 7 cities have 10 or more money transmitter headquarters • San Francisco (23) • Miami (20) • Chicago (19) • Seattle (16) • New York (15) • Minneapolis (13) • Jersey City (11) • This means over one quarter of all money transmitters are located in just 7 cities

  15. Money Transmitters Licensed in 40 or More States • Of the 69 companies with licenses in 40 or more states, 33% are headquartered in California • Adding Texas (7%), New York (5%), Georgia (4%), and New Jersey (4%) means 53% of large companies are in just 5 states

  16. Single State Money Transmitters • Of the 240 single-state licensees, 30% are in Texas and Florida • Adding Georgia (8%) and Washington (8%), 46% of single state licensees are in just 4 states

  17. State MSB Examination Analysis 2018

  18. Disclaimer All examination numbers are based on information reported from states. Licensing information is always out of date without full NMLS adoption. Companies are considered a single consolidated company if the company has multiple licensed corporations.

  19. 2018 Highlights

  20. Variety of State Examinations • 144 Independent, 49% • 63 Offsite, 22% • 84 Joint Multistate, 29% • 1 CFPB Joint Exam, 0% 

  21. Fintech 2018

  22. Start Up Business Models New businesses continue to move away from agent models

  23. Defining Fintech in MSBs 1. Two or fewer agents 2. Licensed in 4 or more states Parameters:

  24. Fintechs in the MSB Industry

  25. Fintech Market Share Takeaway: though only 19% of MSBs can be identified as fintech, these firms control 55.5% of MSB market share.

  26. Fintech Company BreakdownThe top 5 companies make up 84% of the Fintech MSB Market Share

  27. 2017-2018 Fintech Market Comparison

  28. Remittances

  29. Preliminary* Nationwide Remittance Totals * Data quality analysis still underway **“Remittance reporters” are subset of money transmission filers that report “the total dollar amount of transactions from U.S. States and territories to be sent to foreign countries.”

  30. 2018 Remittance Industry Market Share • Out of 215 companies that participate in remittance activity, the top 6 control 54% of the market. • In 2018 these 6 companies moved a total of $101.4 billion. • The average market share for the other 209 companies is about 0.22%

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