Has this week signaled the beginning of something predicted as 2016 began? I’ve read numerous articles predicting the next “Great Recession” or the next new economy… Only one thing is for sure, and that’s the fact that tomorrows economy wasn’t what it was today and nothing like it will be next week. With this new economy there is innovation and change everywhere.
FinTech is a new vocabulary word, shortened from Financial Technology. But, the definition of what qualifies for FinTech changes depending on whom you ask as this catch phrase encompasses numerous financial vertical markets. Some of these vertical markets deal with innovations in new payment methods, bitcoins (blockchain), underwriting, back office operations, and, of course, consumer and commercial lending. This last category is near and dear to my heart, as I run a business lending marketplace, Connect Lending.
If you ask someone to define a lending marketplace you will get an array of answers. The answers will undoubtedly include P2P (peer-to-peer) lending, P2H (peer-to-hedge – peers are now institutional capital), and matching platforms such as Connect Lending. What I face on a daily basis is the disparity of a common vocabulary in the FinTech space.
Our network of advisors works diligently to educate business owners on the changes in business lending, along with the variations in terminology – but we don’t want to stop there. We are developing a vocabulary to simplify the conversation about commercial lending, and are looking forward to an open dialog with our customers, the public and experts. Let me know your thoughts about the FinTech impact in the evolution of business financing and inconsistencies you see in market terminology, so we can develop the right tools and terms to support this growing market.
This post originally appeared on LinkedIn Post by Rick Burgess