Fintech Meetup 2024:  Coming together to get things done

by kim Comment Closed
The last couple of days at Fintech Meetup were intense and well worth the time to attend.  Like other fintech conferences, innovation was a theme brought out in the keynotes and the engaging discussions across the panels.  The aspect of this conference that stands out from any other is its 1:1 meeting program.  Conference attendees participate in back-to-back, carefully curated 15-minute meetings with people who want to collaborate.  This is a roll-up-your-sleeves conference where attendees come together to make things happen!  It was outstanding! Here are some themes that emerged from the many conversations: Fintechs are continuing to modernize small business lending and provide access to capital for underserved businesses that have been traditionally overlooked by the banking system because of the cost to serve.  Using technology to automatically access accounting data is not new – but there have been advancements in technology to process disparate data and a wider ability for lenders to access business sales data by tapping into payment...
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Money 20/20 in 2023:  Getting back to business!

Money 20/20 in 2023:  Getting back to business!

by kim Comment Closed
If you are like me and attended Money 20/20 earlier this week, you are likely still decompressing and working through your to-do list.  This year’s conference started early Sunday morning with an intensity that did not abate.  I always look forward to this event and am grateful for the opportunity to see so many of my favorite people in one place and hear first-hand the trends that are shaping the industry.  Despite industry headwinds, this was an energizing event.  The mood was reflective while also enthusiastic about the opportunities ahead.  It feels like it’s time to get back to business. Here are some thoughts and observations:  There was and will continue to be much discussion about open banking, open data, and 1033.  1033 will be a massive change requiring the sharing of data historically enjoyed by the largest of banks.  Some benefits seem to be proven, agreed upon, and understood such as the ability to use account cash flow data to improve...
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BNPL SHOWS INCREDIBLE PROMISE WHILE YOUNG IN ITS LIFE STAGE

by kim Comment Closed
The product is beneficial and economically rational—but needs some guardrails Why Buy-Now Pay-Later is Growing so Quickly Over several years there has been much interest and discussion around Buy Now Pay Later (“BNPL”) and its role within consumer credit.  The concept of paying for a purchase in installments is not a new concept at all—in the distant past however, it was incredibly inefficient compared to electronic ways to pay and finance at the point of sale, like credit cards. The use of technology to streamline the customer experience at the point of sale has brought the product back in popularity. While we are several years into its resurgence, there are still developments and shifts in the market that make it important to watch if not participate in.    A BNPL product facilitates a purchase whereby the purchase amount is split into generally four payments over a six-week timeframe without an interest cost during the payment period.[1] The product was already on a growth...
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Small Business Lending Faces Enormous Change with Rule 1071

by kim Comment Closed
April 28, 2023 The Importance of Small Business Lending in the United States Small businesses across our nation play a crucial role in the health of our economy. As of 2019, small businesses employed 46.4% of total employees in the United States and paid 39.4% of the nation’s wages.[1] Women and racial minorities own 43.2% and 19.4% of small businesses, respectively.  Despite their significant contributions to the U.S. economy, many small business owners have difficulty accessing credit to launch and/or grow their businesses. Small businesses may not have sufficient revenue history or other information to qualify for credit, their financing needs may not fit within the credit box of banks, or other factors. Access to credit is particularly difficult for women and minority small business owners if their business and/or personal credit histories are not well-represented in traditional credit reporting datasets. When it comes to small business lending, community banks have an advantage over large national banks given their deep understanding of the communities...
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Themes from the Inaugural face-to-face Fintech Meetup

by kim Comment Closed
March 23, 2023 The inaugural in-person Fintech Meetup conference took place this week (March 19 – 22) in Las Vegas and is positioned to be a key event in financial services, banking, and Fintech. The gathering brought thought-provoking discussions and a slew of impactful 1:1 meetings for attendees.  Despite market volatility, there was still an air of excitement over opportunities and resilience that can be created in times of industry stress.       Here are some takeaways related to Fintech Meetup from this week: There is a flight to safety, given market volatility and fragility.  Newer Fintech providers need to look inward, focus on themselves, and continue to innovate.  Larger Fintechs need to figure out how to leverage their scale to position to grow.  All need to refocus and figure out who they are and what they are good at so they can focus on these core strengths. Open banking is exciting but there is uncertainty as to its governance.  There is an increased willingness...
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