Who Needs Banks – Part II

The Wall Street Journal notes that disintermediation is rampant as the banks have continued to ignore community lending giving up this market to online lenders.

When celebrity chefs with a history of earnings cannot get a loan to expand, something is wrong.

So now private capital is flooding in, valuing three “fintech” firms at over $1 Billion.

Will numbers and algorithms beat personal relationships? If the banks don’t get back on the street, they will find their business gone.

http://www.wsj.com/articles/new-lenders-seek-to-eat-banks-lunch-1435520056

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Banking, Banks, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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