The Economist, The fintech revolution, here. Finding NIMo could do this on my iMac.
The magical combination of geeks in T-shirts and venture capital that has disrupted other industries has put financial services in its sights. From payments to wealth management, from peer-to-peer lending to crowdfunding, a new generation of startups is taking aim at the heart of the industry—and a pot of revenues that Goldman Sachs estimates is worth $4.7 trillion. Like other disrupters from Silicon Valley, “fintech” firms are growing fast. They attracted $12 billion of investment in 2014, up from $4 billion the year before. Many of these businesses are long past the experimental phase, as our special report this week explains. Lending Club and OnDeck, two new lenders, have gone public; users of Venmo, a payments app, transferred $1.3 billion last quarter. In his latest annual letter to shareholders Jamie Dimon, the boss of JPMorgan Chase, warned that “Silicon Valley is coming.”
Lending Club, here.
Jonathan Marino, BI, The Federal Reserve Is worried That Small Online Lenders Might Be a Problem, here. There is your Unicorn story.
Some of the leading players in the space will be at Bullard’s bank in St. Louis on Wednesday and Thursday to meet him to discuss community banks’ changing role in lending this week at an annual conference. This will include an executive from Lending Club, and Gilles Gade, CEO of Cross River Bank, one of the key banks supporting online lending.
Cross River is one of several Web-only or smaller community banks processing loans to consumers through online portals like Lending Club, Prosper, and PayPal’s small business lending arm.
Other firms in the space include WebBank, Union Bank, Radius Bank, Wisconsin-based Bank of Lake Mills, and Trust Company of Lincoln, in Nebraska. BofI Federal Bank in California, another branchless bank, also works with startups processing loans.