What does gassing your car at night have to do with getting a loan? Everything we do is now trackable, creating new data sources for underwriting. Meanwhile a cashless and shared economy are disaggregating major asset purchase (cars, houses) for millennials. The old bait and hook of credit cards as an entry to car and mortgage debt is no longer a winning combo for banks to tap the young generation. In short, the consumer fintech value chain is a deck of cards thrown and now cascading to the ground. What are startups doing to slip into this reshuffle, and where are banks still advantaged?
I sat down to think about this question for an upcoming fintech symposium with our friends at @Cintrifuse when we’re in Cincy for @Brandery Demo Day. Many signs point to student debt as a major opportunity for banks when they may have lost advantage elsewhere. With $1T in outstanding student debt growing >10% a year, there’s also plenty of room for startups in there too. Here’s the story: