The Top 4 Fintech Predictions For 2016

Examining The Top 4 Fintech Predictions For This Year And Beyond

Alongside “Unicorn” and “Grexit/Brexit,” “Fintech” was considered one of the top 10 financial buzzwords of 2015. But fintech isn’t a newcomer to this list — and for good reason. For a few years now, fintech companies have moved from the margins to the mainstream . They are building tech-enabled financial platforms that serve consumers better than traditional financial institutions, and consumers are responding. As the CEO and co-founder of CommonBond, a fintech lender that to date has focused on student lending, I’ve seen that evolution firsthand. And from my vantage point, I see a fundamental shift in finance happening right under everyone’s noses. Here are my top four predictions of where I think fintech is going this year (and beyond): Capital will get more discerning and bunch up around the best players. Fintech companies that in the past year would have begun with a big idea, a few buzzwords and a PowerPoint deck will not get funded this year, or beyond. Capital will still be available, just not to everyone. Only the companies that have developed proven products and built brands that resonate with consumers will attract the capital they need. These are the companies with more proven platforms — the ones you’ve heard of. Of the emerging fintech lenders, the big ones will get stronger and the small ones will attach to the larger players or simply peter out. We’ll move from a world that thinks about the top 200 fintech lenders to a world that only cares about the top 20 — and the market will be healthier for it. A large tech company will make a big move into finance. I can’t tell you who it will be, but I can tell you that 2016 is about the right time for this to happen. Finance touches […]