Eric Daniels is the former CEO of Lloyds Banking Group, a bank that is on the list of the top 25 largest banks around the world depending what metric you use. Today we learned that Daniels is now joining the board of UK based Funding Circle. He most recently served as a principal and senior adviser to investment bank StormHarbour Securities and as a senior advisor to CVC Capital Partners.
Many people may wonder why a former CEO of an institution that has been around since 1765 would be joining one of the leaders in fintech in the UK. Despite what people think the future of lending should look like it’s important to remember that banks have been lending successfully for many decades or in the case of Lloyds many centuries. Platforms can benefit by drawing on the expertise of individuals who come from the banking world like Daniels. Also, bringing in expertise from the banking world will help the marketplace lending industry become more mainstream. We’ve already seen many partnerships with banks and this is a trend I expect to continue, especially as traditional bankers get more involved in the innovation that’s going on in the industry.
According to Bloomberg, Daniels will be joining Funding Circle’s risk and audit committees, working closely with Bob Steel, the former CEO of Wachovia Corp.
According to Daniel in a recent interview:
There’s been a sea change in traditional banking. New capital and risk-weighting requirements have turned the industry upside down, and it’s become difficult for institutions to continue lending the way they did before. That’s left an opening, and Funding Circle has deftly taken advantage of that.
It’s certainly going to be an interesting next few years for Funding Circle as they are well poised for growth across the globe.
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