Financial Services featured as one of the key industries to be overturned by startups going forward. Lending, payroll, health insurance and many other traditional services will be reshaped. This article highlights a few of the next generation of tech disruptors.
In the credit drought left by the 2008 financial crisis, startups specializing in financial services technology (fintech) have arrived in a downpour, each with different means towards the same end: to disrupt the current banking model. Nowhere has this been more apparent than in lending. Beginning in 2005 with UK-based Zopa and culminating last year in Lending Club’s soaring public exit, the online lending marketplace entered this year on a Gold Rush high. But even though its roots are in the model of “peer-to-peer lending,” simply defined as the practice of one individual or institution lending to another without traditional intermediaries (mainly banks), the ecosystem of next-gen lenders today is sprouting a number of niches. One of those niches is student loan refinancing and, more recently, mortgages.