An article from Bloomberg highlights bank investments in fintech companies; the article cites a report from Opimas noting that both Goldman Sachs and JP Morgan Chase are investing in companies that aim to disrupt banking; Goldman Sachs has invested in 15 fintech companies focusing on capital markets; JP Morgan Chase has invested in nine; the report states that banks and other companies will invest $1.7 billion in approximately 44 deals this year; this comes at a time when venture capitalists are shying away from the market. Source
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Competition in the personal loan market has become quite heated since the financial crisis; banks of all sizes, and credit unions now have to compete with the likes of emerging fintech companies who have originated billions in loans; at LendIt USA 2017 Ken Lin of Credit Karma did a keynote presentation on some of the keys to success in this highly competitive market; helping to understand the trends of the last few years (higher defaults and increased APRs) can first give you a better understanding of current market conditions; the keys to success to overcome and reverse those trends are to continuously refine your underwriting models, solve real customer pain points and find a way to win on mobile; keeping ahead of the curve is not easy with so many players but making improvements to certain areas could go a long way. Source