Fintech is redefining lending but how will it affect your small business? Three trends…
We are in the middle of the Digital Revolution, and it has now become apparent that old institutions and established ideas are being displaced with new ones.
If you haven’t heard by now, Fintech – Financial Technology is exploding and enabling new disruptive business models to emerge. The Fintech landscape is vast and includes a number of industries and sectors, from peer to peer lending platforms, electronic payments, marketplaces, insurance to cryptocurrency in the mainstream.
According to Thomson Reuters Labs, it is estimated that there are over 200,000 Fintech startups in the US alone, creating over 500,000 jobs. Well capitalized Startups like WePay, and Stripe are competing and winning against established banking giants, and online platforms like OnDeck Capital play matchmaker to lenders and borrowers.
Fintech is redefining Financial lending models and how we do business with each other, but how will this affect your small business?
Here are three trends that will continue to grow and disrupt major industries – and it’s all good for business.
1. Marketplace Lending
“A bank is a place that will lend you money if you can prove that you don’t need it.”– Bob Hope
Because of mass consolidation in the banking industry, banks have become a big drag for small businesses, they just really aren’t equipped or interested in lending to them. Perhaps the most significant change for business, especially small business is the expanded ability to secure loans and capital through marketplaces that actually believe in small business.
Marketplaces are not simply disruptors but will actually displace traditional lending institutions in the near future. In a recent report by Foundation Capital, it is projected that by 2025, $1T in loans will be originated through online marketplaces globally.”
It is clear we are just on the cusp of a massive change in lending and it is a good thing for all businesses.
To date there are a reported 634 cryptocurrencies in play globally.
Having almost overcome it’s dark reputation for funding illicit business and crime, is the idea of using cryptocurrency in general finally moving towards mainstream acceptance? Yes!
You can see this with the meteoric rise of virtual currency Bitcoin, whose growth is being driven by demand in Asia.
Next- #3 and Businesses and small business included will gain from the adoption and acceptance of this currency, why?