Banks & Fintechs need each other

Banks & Fintechs need each other

The first bank to partner with a fintech could dominate  SME lending

In 5 years time, Fintechs will dominate the market for unsecured small business loans up to $250k. There are thousands of credit worthy SMEs who are more than capable of servicing and repaying a loan of up to $250k but they can’t get the funding from the banks because of lack of security. This is the market where fintechs play. Collaboration between banks and fintechs will produce a better outcome for both these parties more more importantly for SMEs. This will happen and probably sooner rather than later but which banks will lead the way? Only time will tell.

In this article in BRW we explain the reasoning for making what appears to be a big call.

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    Neil – I enjoyed your presentation at CPA today. My question on Alibaba stemmed from my interest in how they will disintermediate trade finance:

    I also think that the consulting firms will partner with Fintech before the banks do…

  • Thanks Rory. Excellent article of yours in TFR. The opportunities for big global disruptors like Alibaba, PayPal etc are huge. Once new working capital options become available to SMEs by these global players the banks will be under real threat. If they fail to respond they may ultimately just become great big building societies but I wouldn’t write them off just yet. Interesting times ahead for sure.