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~2% of xoxo non-retards/non-lunatics: question about FinTech
| Godawful Pozpig | 03/19/18 |
| Comical Casino Milk | 03/19/18 |
| bright motley stead | 03/19/18 |
| Magenta adventurous mediation | 03/19/18 |
| Bistre faggot firefighter meetinghouse | 03/19/18 |
Poast new message in this thread
Date: March 19th, 2018 2:37 PM Author: Godawful Pozpig Just tossing this out since once in a while smart people come here.
why hasn’t technology totally upended modern financial intermediation (banking, insurance, investment management, capital markets - these are all various kinds of maturity transformation)? The financial sector enjoys gigantic economic rents based on a few advantages: access to information (to make better informed decisions about risk and capital allocation), distribution (bank branches everywhere), scale (cross sell different financial services) and, maybe most importantly, legal barriers to entry. Save for the last factor though, this market is MADE to be annihilated by stuff like machine learning, big data, cloud, ect. Banks have prehistoric back office functions and inefficient processes - I’m confident new players could provide better services at lower cost. Easy to imagine new tech making better credit decisions, better insurance decisions and better liability management decisions at waaaay lower fixed costs than modern banks and insurance companies
So why hasn’t his happened yet? Is it more likely incumbents just buy up threatening new startups or that the entire industry/regulatory structure collapses under the weight of new competition? Banks are politically unpopular but are super important to the modern system of money creation - they’re still the plumbing for the global economy. Killing their profitability could arguably hirt their resiliency and shift risks onto society writ large. Is there a point where politicians step in to protect modern incumbents then?
I have a couple VC/Corp dev interviews this week and this is relevant thanks |
Date: March 19th, 2018 2:40 PM Author: Comical Casino Milk If you're CSLG trusted, I'd be happy to talk to you offline about this. Was c-level and/or reported to CEO at two known fintechs. (http://www.autoadmit.com/thread.php?thread_id=3922927&forum_id=2#35638464) |
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Date: March 19th, 2018 2:42 PM Author: bright motley stead This year was the true start of the beginning of it happening. (http://www.autoadmit.com/thread.php?thread_id=3922927&forum_id=2#35638480) |
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Date: March 19th, 2018 2:52 PM Author: Magenta adventurous mediation regulations and general human stupidity. (http://www.autoadmit.com/thread.php?thread_id=3922927&forum_id=2#35638574) |
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Date: March 19th, 2018 2:53 PM Author: Bistre faggot firefighter meetinghouse Having worked with a couple of large regional banks, I can attest to the fear they have over products like Rocket Mortgage (and that's the specific product that 2 Senior guys (one a CFO and one a senior VP) mentioned quite a few times). One barrier to adoption of these products is age and millenials' relatively shitty financial situation (as compared to previous generations). The +45 crowd still dictates how the banking system functions and delivers products because they are still the primary customers.
I wouldn't necessarily say that traditional banks are that archaic or operate that inefficiently. They've been automating underwriting and loan origination over the past decade and have been slimming down branches left and right. |