Consolidation Is Coming In Marketplace Lending

The video discusses the fintech market dynamics in Canada and the US, highlighting the challenges posed by entrenched legacy incumbents. It explores the valuation challenges fintechs face, debating whether they are tech companies in financial services or vice versa. The discussion covers market consolidation trends, predicting a reduction in online lending players. Finally, it examines the B2B2C model as a strategic approach for fintechs, especially in mature markets like North America.

What is one of the main challenges for new fintech players in developed markets like Canada?

• Strong presence of legacy banks

• High regulatory barriers

• Limited access to technology

• Lack of customer interest

What is a key consideration for investors when evaluating fintech companies?

• The number of employees

• The age of the company

• The company's location

• Whether the company is more tech-focused or finance-focused

What trend is expected in the online lending space according to the discussion?

• Increase in the number of players

• Decrease in technology use

• Consolidation from many players to a few

• Expansion into new markets

How have some fintech companies adjusted their business models?

• By focusing solely on B2C

• By increasing their marketing budgets

• By forming partnerships with larger financial institutions

• By reducing their product offerings

What is a significant challenge for fintechs trying to replicate large financial institutions?

• Lack of customer data

• Inability to innovate

• Insufficient marketing spend and distribution capability

• Limited geographical reach