[Editor’s note: This is a guest post from James Alexander, an experienced marketplace lending executive who has been following this industry for many years. See the end of this post for a more complete bio.]
In 1998 a small Internet banking site called X.com made the bold decision to focus on its payments business. A few years later—renamed PayPal—this company encompassed over 100 million active users. Today, the disruption of financial services promises to be more dramatic and far-reaching.
Financial technology (FinTech) represents nothing short of revolutionary change, encompassing payments, next generation advisors and lending. Investments into FinTech startups recently quadrupled, growing to over ~$12 billion in 2014 from ~$3 billion in 2013. It appears 2015 is on track to dwarf the previous year, according to CB Insights, which charts more than 1,300 transactions in the sector since 2008. [Read more…]