As the interest in fintech and financial services in general continues to grow, there’s been chatter of an Uber-like disruption by the startups in the space.
Our next guest, Vince Passione would beg to differ. He’s the CEO of LendKey which provides the incumbent banking system the digital tools it needs to sufficiently compete in marketplace lending. The issue right now isn’t whether marketplace lending is going to grow, it’s more of who takes the lead in this space. It’s worth listening to Vince because he’s been a major part of the move to digitize financial services, leading Citi’s move online and Ameritrade’s Institutional Client group.
This move to online lending started with pure play disrupters like Lending Club and Prosper and is moving to a more collaborative environment with traditional institutions following quickly with their own offerings powered by companies like LendKey. The company has 320 clients and has helped originate over $1 billion in loans with its banking clients.
In Vince’s opinion, there will never be an Uberization of finance because banks and credit unions do eventually adopt technology. They survive. Same thing happened in Internet banking.
There is an entire system of trust and regulatory framework built around banks making them very hard to disintermediate. In this sense, LendKey is providing the shovels and pickaxes for the marketplace lending goldrush and it’s selling them to the big boys.
Listen to the FULL episode
In this podcast, you’ll hear about the following:
- How and why lending-as-a-service is being adopted by traditional lenders
- Why banks aren’t being Uber-ized
- How this whole land grab for online lending will play out
- New consumer demands for increased transparency, speed, and customization in payment terms
- How future clients desire to engage with digital lending brands
- How digital decision making is occurring at top performing banks
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MORE RESOURCES
- LendKey (website)