Claims that Lending Club is “disruptive” or that it will “end banking as we know it” are so totally ridiculous that it has to make you wonder what the claimants were smoking when they made these claims. Lending Club is a niche player in the lending market, a fringe player.
The American Bankers Association released the findings of its 2014 survey regarding bank channel preferences. A pymnts.com article titled Mobile’s Impact on Bank Branches reported that 21% of those polled selected the branch as their most preferred banking method, up from 18% in 2013. My take: The title of the article is wacky, and the ABA’s explanation of what’s going on is incorrect.
With apologies to the Beverly Hillbillies: “Come listen to my story about a man named Ron, a real tech moron, could barely turn his PC on. And then one day he gets a message from his bank, and now he has to give up his FinTech Titan rank.”
SAP released the results of a global survey it conducted which found that: “Half of the respondents surveyed turn to their devices to pay a bill (55%), make a bank transfer (52%) and set up a new account (48%).” The mobile bill pay reality — in the US, at least — is that nowhere near half of consumers are using a mobile device to pay their monthly bills.
The reality for financial start-ups is that while blazing a new trail through an uncharted forest, sometimes you run into a brick wall. You can cut down a tree, but you can’t cut down a brick wall. PerkStreet hit a brick wall. And the sign on the wall read “Caution: Consumer Apathy About Financial Services Ahead.”
There is no clear definition about what PFM is (and isn’t). There is no common understanding — among bankers or consumers — about what PFM is. Bankers need to redefine their concept of PFM, and expand the definition to include a wider range of “PFM” capabilities.
I really don’t know how so many of you put up with the New York Times. Mrs. White’s 3rd grade newspaper at the Bearsville (NY) Elementary School demonstrates better quality journalism. In a (typically) shoddy piece titled Over a Million Are Denied Bank Accounts for Past Errors (not going to link to it, you can find…