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Forbes: Inside the Secret Bank Behind the Fintech Boom

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Forbes: Inside the Secret Bank Behind the Fintech Boom

A very eye-opening article from Forbes magazine.  Its probably essential reading for people who follow the finance industry closely, and those who have loans through outfits like Lending Club, Affirm, BestEgg, etc.

 

Forbes: Inside the Secret Bank Behind the Fintech Boom

 





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Re: Forbes: Inside the Secret Bank Behind the Fintech Boom


@MaizeandBlue wrote:

A very eye-opening article from Forbes magazine.  Its probably essential reading for people who follow the finance industry closely, and those who have loans through outfits like Lending Club, Affirm, BestEgg, etc.

 

Forbes: Inside the Secret Bank Behind the Fintech Boom

 


LendingClub is P2P for all that some of the lenders are actual financial institutions themselves.  They are a different animal than the others on your list.

 

"Once you get beyond the slick iPhone apps and inflated tales of big-data mining and AI-generated lending decisions, you realize that many fintechs are nothing more than aggressive lending outfits for little-known FDIC-insured banks."

 

That is the salient line if not quite fully accurate which I can confirm having worked in and around fintech; specifically, some of the lending outfits aren't little-known-banks.  Some of the warehouse lines come from banks I suspect pretty much everyone has heard of and not just on this forum.




        
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Re: Forbes: Inside the Secret Bank Behind the Fintech Boom

Several months ago I watched a documentary about the rise and fall of Theranos.

 

After reading this Forbes article I can see many of these types of movies ahead!

 

I mean...

  • LENDING CLUB, Marketplace Lender, IPO: December 2014, Market Value Loss: $8.8 billion.
  • GREENSKY INC., Home Improvement Loans, IPO: May 2018, Market Value Loss: $3.7 billion

Big data, AI, ML, random forest, linear regression...maybe a Kubernetes Hadoop robot thrown into the brochure...buy some AWS time and wait it out for the IPO. I'm so cynical now.

 

Really enlightening article, @MaizeandBlue !

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