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.