In part 1, I talked about how the Senate Banking Bill will break up the FICO monopoly over the government mortgage market. Part 2 discussed the size of the credit scoring/financial monitoring market, and the perverse incentives of the credit scoring models. Today, I’ll start to lay out the broader landscape for financial data collection,… Read More


Last week I talked about how Section 310 of the Senate banking bill could introduce more competition into the credit rating industry by opening up Fannie Mae and Freddie Mac to buy loans underwritten with credit scores other than FICO. Currently, FICO has a monopoly on the two GSEs, but if this bill becomes law… Read More


The Senate Banking Bill may open up a new market for fintech startups providing financial credit worthiness data. By dismantling a regulatory monopoly that FICO holds, new and better models may be developed and used to serve customers better. Legislative History (or, A Funny Thing Happened on the Way to the Senate) But first, a… Read More


Given my ongoing coverage of Goldman Sachs’ foray into fintech, I had to include the below brilliant coverage of the seemingly-soon departure of CEO Lloyd Blankfein. Journalism at its finest… First National Bank of Amazon Amazon has been making headlines again, as speculation continues around Amazon’s interest in “becoming a bank.” The furor reached a… Read More


Last week I shared with you the challenges fintech companies have had in helping consumers change their behavior. Colorful graphs and charts in a budgeting app don’t do much to help consumers be proactive in managing their finances – they just report data after the fact. However, I did find one startup that is doing… Read More


They never saw it coming. While the banking industry was worried about LendingClub and OnDeck, a much bigger threat was waiting in the wings. This was not some well-funded start-up bent on destroying the banking industry. It was an established incumbent embarking on a new path – from serving the complex needs ultra-high net worth… Read More


Happy Last Friday of 2017! While many publications are spending time right now offering predictions for the coming year, I thought it would be interesting to revisit some predictions for 2017 and see how things turned out. After all, why listen to anything that the “experts” predict if they aren’t consistently correct on items even… Read More


Quote of the week: “Banks are crying because Silicon Valley eats their breakfast every day and we don’t want to join the whimpering party. Tech companies are our main competitor.” –        Herman Gref, CEO and CAWO (Chief Anti-Whimpering Officer) of Sberbank Starling takes a step closer to being a full marketplace bank UK-based Starling Bank… Read More


Fintech is taking a break for today. Instead, read on for the Christmas edition of “How the Venture Capitalists Stole Common Sense-mas”, featuring Wreath-mart, iWreath, and the venture capitalists whose large infusions of cash disrupt profitable unit economics to drive good companies to do bad things… Act 1, It’s a Wonderful Wreath Wreath-mart, the long-standing… Read More


Did fintech fail? After years of hype about how startups were going to disrupt traditional banks, much of the conversation has turned to how startups can help incumbents. Even those involved in the fintech boom are now stepping back and unpacking why startups haven’t made good on their promise to disrupt banks. Jake Fuentes, co-founder… Read More