February 15, 2016
While bankers were busy thinking of the explosive power of FinTech, some have missed an interesting trend. There is a high-margin segment in the banking value chain space that has been stolen away by FinTech: lending. FinTech companies focusing on lending flourished without the burden of carrying the expenses of low-margin services and brick-and-mortar life. Meanwhile, banking industry giants have been nervously looking for ways to beat their rivals or build beneficial relationships with them.
As controversial as it may appear, FinTech lenders started to see the gold mines in Lending startups. Even though the in-house value chain has been damaged, it led banks to the next level of internal organization and operational efficiency.
There is a certain logic behind the fact that FinTech has actually brought more benefits to traditional banking than disruption and damage as some m ...