Moving the Economy Means Moving Money to Revitalize Credit and Create Jobs

BOSTON--(BUSINESS WIRE)--David Evans, Founder, Market Platform Dynamics and author of Paying with Plastic (2^nd Edition, MIT Press) discusses the problems facing the U.S. Economy and the impact of the CARD Act and the potential impact of the Consumer Financial Protection Act (CFPA) on lending, employment and economic stability at the U.S. Chamber of Commerce's Capital Markets Summit.

There is concern in the industry that businesses — especially small ones — can't get credit as a result of three interrelated problems.

First, banks aren't lending because a lot of companies don't want to borrow. They have horrible balance sheets left over from the financial crisis, they face weak demand, and they face uncertain futures because it really isn't clear how quickly the economy will improve
Second, banks aren't lending because a lot of the companies that want to borrow don't look like such great credit risks. These companies have horrible balance sheets, face tepid demand, and uncertain futures! And when banks do lend they charge more.
Third, Congress and the Obama Administration are making the second problem worse. A lot of small businesses rely on personal credit cards. The CARD Act has made it harder for banks to charge for risk. The result is they are cutting off credit for some people and generally charging more to cover the costs of a bad credit risks they can't identify.

An archive of the discussion and a full transcript of David Evans’ comments are available on PYMNTS.com at http://pymnts.com/it-s-time-to-take-the-thumb-off-of-consumer-and-business-borrowing-to-get-the-economy-moving-again/.

David S. Evans has been a business advisor to many payment companies around the world. He is the author of Paying with Plastic: The Digital Revolution in Buying and Borrowing which is the definitive source on the payments industry. His more recent work is “Innovation and Payments” which describes the how the combination of data-driven marketing, cloud-based computing, and mobile telephony will transform the payments industry.

David is an economist, business advisor and a recognized global authority on the design and implementation of complex business strategies and business models. He has more than 25 years of experience helping companies worldwide design business strategies in multi-sided markets to overcome the “chicken and egg” problem of getting multiple customer groups on board the same platform at the same time. He is the author of Catalyst Code: The Strategies Behind the World’s Most Dynamic Companies and Invisible Engines: How Software Platforms Drive Innovation and Transform Industries, which won the award for best business book of 2006 from the Association of American Publishers as well as more than 100 articles.

David is the founder of Market Platform Dynamics, a boutique consulting firm that helps businesses leverage economics and quantitative methods for growth and profit. David teaches part time at the University of Chicago where he is a Lecturer and at the University College London where he is a Visiting Professor and Executive Director of The Jevons Institute for Competition Law and Economics. He has a Ph.D. and undergraduate degree in economics from the University of Chicago. He also serves on the boards of several high-technology companies and is a longtime advisor to some of the largest platform-based companies in the world.

About PYMNTS.com

PYMNTS.com promotes the companies, products and people that drive "what's next" in payments, worldwide. PYMNTS.com is a joint venture between Berkshire Hathaway's Business Wire and Market Platform Dynamics. In the two months since its launch, PYMNTS.com has assembled a very large and highly engaged community of relevant (and senior) industry executives and opinion makers across the payments ecosystem who regularly click on its newsletter, visit the site, and spend a lot of time there. PYMNTs.com has become the "hub" for payments innovation for those whose core business is payments and for those who view payments as central to their own commerce capabilities.

About Market Platform Dynamics (MPD):

MPD is a management consulting firm that ignites catalyst businesses by leveraging new technologies, business models and pricing strategies. MPD has a wealth of experience within industries that are characterized by complex platform-centered ecosystems, including payments, mobile/telecoms, digital and advertising-supported media, and software-based businesses.

MPD works with both incumbents and new entrants, offering a unique lens into the dynamics that shape the competitive playing field. In addition to traditional consulting-based services, MPD’s Catalyst Ventures provides intellectual and human capital to new firms. MPD’s experts include economists, econometricians, product development specialists, and strategic marketers who apply cutting-edge business theory and statistical methods to the practical problems of building and growing a profitable catalyst business. MPD is headquartered in Cambridge, MA, and has offices in London and Hong Kong.

For more information visit www.marketplatforms.com.

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