Tag: SMB financing
-
SME Lending Fintech-Style – Part 2: Financing Context
To unlock small and midsize enterprise (SME) lending requires addressing a complex problem with multiple parts. Alternative financing is part of the solution, but so is improving cost-efficiency of bank lending. With funding gaps in the billions, all financing channels will need to be made more productive and will require improvements to the way SMEs…
-
SME Lending Fintech-Style – Part 1: Ecosystem
Financial institutions are staffed by experienced, well-educated, highly paid individuals. Do they need to partner with financial technology (fintech) firms or bring in consultants– surely they can throw money at any problem? Perhaps. But as 19th and 20th century economic examples of Comparative Advantage teaches us, combining powerful with nimble can offer positive outcomes. Banks…
-
Banks finally readying to crash the fintech party?
There’s no shortage of opinions on how the banking industry will be reshaped. Quite popular, are predictions of banks relegated to boring (regulated) infrastructure & verification services, augmented by a multitude of slick UX, machine-learned fintech players delighting impatient, ‘fed-up-with-the mediocre’ consumers. In a previous post asking how we want to ‘Uberize’ (disrupt) banking, I…
-
Do we really want banking ‘Uberized’? Part 1
Do we want to ‘Uberize’ banking to improve it, in the same way as taxis and hotels? Even for those working within the tech ecosystem, it’s hard to keep pace with the impact digitization and software continues to have on processes and competitive balance across industries. Venture capital seems to love talk about disrupting fragmented…
-
Rebalancing the financial services workforce
It’s been an interesting start to the year. Falling oil prices, stock market dampening and China-led slowdown have kept us occupied while snowstorms, rains and floods do their thing. On the international stage, a few key themes seem to have been dominating Davos: while the year’s burning security, humanitarian and energy and political realities are…
-
Is regulation contributing to ‘disrupted’ financial services?
I tend to get more passionate about this idea as the evening progresses. A few years ago, a trickle of fintech startups started offering alternatives to traditional financial services. Lending, payments, FX, savings, borrowing, wealth management were among the first targets, all of whom expanded the trickle to a flood. Narrowing it down to lending,…
-
Are startup versatility and pivoting a good thing? – Part 2
In part 1 of this post, I talked about pivoting, using my own fintech startup as an example. Setting out to boil the ocean of small business lending, we’d built a working capital platform that combined a borrower/lender marketplace; invoicing; and basic collections CRM. Market timing, borrower behaviour, public policy all shaped the months that…
-
Closing a chapter
Sometimes we get an opportunity to reset, reorganize and push ahead. Timing, funding, team: all the pitons that slow the start-up climb up the cliff. And sometimes, the climb isn’t the one you set out on and it would be quicker to start again using lessons learned, than to try to pivot from the current…