Fintech_ shaking up the financial industry – cbs news

One sector of our economy after the next is being disrupted by new apps and websites, like bookstores, travel agents, taxis, hotels. Hard money lender definition Tonight, we’re going to explore whether the banking industry is next on the list. How to be a money lender Thousands of startups are challenging many aspects of banking, the newcomers argue that this important sector is too set in its ways. What is a hard money lender for real estate It’s being called the financial technology — or fintech — revolution.

Extortionate money lender We looked at the birth of one fintech company founded by two young fintechies who started not unlike the founders of Facebook and Microsoft.

Patrick Collison: In a world where people can send a Facebook message or sort of upload an Instagram photo and have it available to anyone anywhere in the world [snaps] like that, I think the fact that that doesn’t work for money is something that seems kind of increasingly, honestly, unacceptable to people. Money lender clementi And so, I think the question for banks is just– can they get there first in providing these services? Or will it be somebody new?

They want to be the somebody new. Money lender advertising John, 25, and Patrick, 27, first noticed the problem when they were in high school in Dromineer, a dot of a town in Ireland.

But when they wanted to charge people to buy the apps they hit an unexpected snag: they had to go to the bank and file paperwork just to be able to collect the money.

Patrick Collison: Right, exactly. Money lender miri And it would take sort of weeks for this approval process to happen. Miri money lender And it just seemed sort of like this crazy mismatch.

So they decided to do something about it. Malaysia licensed money lender association They created software that allows businesses to cut through all that bureaucracy and instantly accept payments online from countries across the globe. Grasping money lender We visited their startup, Stripe, in the Mission District, the heart of San Francisco’s tech scene, where Patrick showed me how fast a business could set up a money-collection system using Stripe.

In five minutes, after a few clicks and a cut and paste of their code, he said my company would be ready to receive payment for homemade dog food online, right then and there.

They developed software for “buy” buttons, letting companies accept payments online fast and in new ways. Singapore money lender association Stripe charges sellers a small percentage for every transaction.

Patrick Collison: We want to free businesses from just selling via credit cards, you know, to people who hold bank accounts, and instead, enable people to purchase online no matter what it is that they use, bank account or no. Money tree loan interest rates “Many of the innovative services in financial technology that have come along in the past 10 years are not coming from banks.”

Stripe is hardly alone in inventing new financial technology — or fintech. Money lender definition There’s a revolution brewing with thousands of these companies trying to make banking faster and cheaper and increasingly mobile.

But by and large the newcomers are not challenging the core function of banks taking deposits. Licensed money lender singapore Even the startups themselves park the money they handle at FDIC-insured banks.

Patrick Collison: I think there’ll always be a need for sort of somewhere to store your money, to have it sit. How to become a private money lender And, we think, you know, for all their flaws, they have a lot of experience at being banks, right?

But fintech is targeting nearly all the other functions of banking. Singapore money lender act The startups are peeling off one profitable service after another, typically offering them for less. Money lender license hk It’s called “unbundling the banks.”

Say you need a loan: Fintech sites match borrowers and lenders directly the way Uber connects passengers with drivers. Hard money lender list Need financial planning? Algorithms are replacing human advisers and brokers. Licensed money lender interest rate Apps, like Venmo, let people click money to each other similar to texting and if you want to wire money across borders:

The CEO of a company called TransferWise showed us how his app can send money abroad and convert currencies — say dollars into pounds — without bank tellers and high exchange rates. How to become a private lender with no money Users just swap with each other.

Vikram Pandit: A lot of what you’re seeing in fintech is like what you’re seeing with Uber or Airbnb. Best money lender in singapore I mean, you’ve seen the impact of technology on travel or retailing–

Vikram Pandit: It’s early days. Money lender singapore review And you know, banks are thinking about it, and they’re trying to understand what all this new technology can mean.

Max Levchin, who co-founded PayPal and was an early investor in Stripe, cites a survey saying 70 percent of young adults would rather go to the dentist than to a bank!

Max Levchin: They don’t really have a problem putting their social security number into a web form, but they have a terrible problem going up to a teller in a bank, and trying to figure out what exactly you’re supposed to do. Licensed money lender tampines “This is so inefficient. The moneylender and his wife Why am I in this stogy outdated room that is empty and marble-laden?”

Lesley Stahl: The millennials, their basically formative experience is the financial crisis. Licensed money lender association They’re the ones who really don’t trust the banks.

Vikram Pandit: Well, there’s no question the crisis demonstrated that the system didn’t work. Money lender jurong And when you looked at the aftermath of the crisis, what needed to be done. The best money lenders You had to make sure banks got back to the basics of banking, and that they had to address the trust issue.

But in the meantime fintech started taking root. Private money lenders interest rates In the last year and a half investors have poured over $20 billion into the sector including this banking insider who’s personally invested in a dozen fintech startups. Money lender law He says that beyond making banking more convenient, these companies can offer options to lower-income families that can’t afford to bank at banks; 10 million American households don’t even have a bank account.

Lesley Stahl: You know, I’ve read that it is more expensive for a poor person to use the banking system as it exists than for a wealthy person. Singapore money lender license How is that possible?

Vikram Pandit: The new companies they’re transparent and they tell you what the fees are. Money lender license And they are fraction of some of the fees that are charged by banks.

John Collison: As services move onto the Internet they can provide the services more cheaply. Online money lender reviews And you know many of these banks, they have hundreds of thousands of employees. Licensed money lender singapore interest rate Whereas as we see financial services moving online, they don’t have to have a physical presence and pay for that. Licensed money lender review So you can eliminate hidden fees if your cost structure is lower.

Lesley Stahl: And I’m hearing “eliminate jobs,” I mean we’re talking about hundreds of thousands of jobs in the banking sector, tellers and, you know, financial advisors, you name it.

Patrick Collison: I think in general technology always sort of makes some jobs less relevant, or perhaps, even obsolete, but I will say that the idea that sort of these people will find nothing else to do seems like it’s way too pessimistic on the capabilities of everyone as human beings, right? These–

Patrick Collison: I think it’ll take a while to adjust, but when you think about just the creativity of people and what they’re capable of and the sort of aspirations and dreams that they have, the idea that they’re not capable of anything more than sort of performing these automatable clerical tasks, I don’t believe that for a second.

There are issues with fintech that go beyond the loss of banking jobs. Money lender license singapore Letting these new companies handle your money could be risky because there are concerns they’re inadequately regulated. Money lender interest rates in singapore There’s also the issue of online security.

Patrick Collison: I think you’re right in the sense that people have been trying to steal money for as long as money has existed and, the best we can– sort of– as a society hope to do is to sort of design security in the most thoughtful and sort of robust way possible. Licensed money lender singapore forum And that’s what we set out to do with Stripe.

And it’s not like the big banks haven’t been breached by hackers. Money lender ordinance So is fintech the next Uber? Well, it’s still a small slice of the financial industry. Licensed money lender in singapore And the powerful and rich old guard is fighting back, its lobby already pushing for more regulation to curb the newcomers; and – scrambling to adapt — big banks have begun increasingly investing in and partnering with fintech, some looking at a technology called blockchain that’s behind digital currencies like Bitcoin.

Patrick Collison: I think it’s kind of human nature to always want to see these things as a competitive dynamic, that either technology companies have to win or the banks have to win and one of them is going to lose.

Lesley Stahl: Do you think what you have can be brought to a bank like Wells Fargo or JP Morgan, Chase? Can they integrate this or it’s either one or the other?

Patrick Collison: I think they can be part of it, they can be part of sort of the infrastructure that powers it. Money lender meaning in urdu And, again, we work with Wells Fargo and many other banks today. Another word for money lender But I think that they can only be part of it. Money lender interest rates They can’t be sort of the agents driving it forward.

He says that over one in four Americans online have used Stripe in the last year, including on sites like Facebook and Twitter, and department stores like Saks and Macy’s. What is a private money lender The software is embedded on both Apple Pay and Android Pay, and its already helped hundreds of thousands of businesses accept money online.

Even though Stripe has some stiff competition — like PayPal — the brothers have made two covers of Forbes and the 4-year-old company is now valued at $5 billion. Money lender miri sarawak Not bad for two brothers who not long ago had to beg their bank branch for approval.

John Collison: When you have a major technological shift like this, it’s not clear that automatically, the existing financial players are the ones who are gonna win.

John Collison: I mean, there were plenty of huge retailers before Amazon, but somehow, this little, you know, upstart from Seattle– you know, in just a few short years, gobbled up the business.

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