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At Benzinga Fintech Awards you’ll see that this is just the beginning of the revolution
Is the love affair with fintech coming to an end?
Last week, Lending Club shares got slammed after the CEO was forced out for selling loans with inaccurate disclosures. The fintech hottie lost half its value. Other peer-to-peer lenders took it on the chin as well. Meanwhile, investors have been talking about a bubble in startup prices in general. The IPO market is dead. Venture capitalist complain of too much money chasing deals.
Investors might be nervous, but the industry is planning for an even bigger boom than ever in fintech, which touches every aspect of lending, banking, finance, and payments. Everyone from JPMorgan to Wells Fargo to Citi are creating their own fintech incubators because that’s where the future lies.
On May 24 in New York City, you’ll see the full extent of the reach of the industry at the Benzinga Fintech Awards where 130 companies are competing – double the amount from its first year in operation. Among the top competitors and movers and shakers who will be presenting:
- Xignite, a self-described enabler of the fintech revolution “by providing entrepreneurs with simpler, faster and cheaper financial market data APIs to help them deliver real-time and reference financial market data to their digital assets, such as websites and apps.”
- Advizr, which “’turbo-taxes’ the financial planning process, streamlining it while still delivering the essential value of a plan. We believe that advisors should invest their time on providing guidance to their clients, not on creating financial plans.”
- Carey Kolaja, global product officer at Citi Fintech
- Roger Ehrenberg, managing partner at IA Ventures
The Economist sees three reasons for optimism about fintech, regardless of current valuations.
First, the fintech disrupters will cut costs and improve the quality of financial services. They are unburdened by regulators, legacy IT systems, branch networks—or the need to protect existing businesses….
Second, the insurgents have clever new ways of assessing risk….
Third, the fintech newcomers will create a more diverse, and hence stable, credit landscape.
In his annual letter to shareholders, JPMorgan CEO Jaime Dimon warned that Silicon Valley was coming.
A few bumps in the road isn’t going to stop it.