Richard Blumberg said that investing heavily in legal and compliance was a must for fintechs in order to make sure that their model works. New entrants that don’t do this and make mistakes suffer dearly. He added that 92% of the personal loan market belongs to the banks thanks to credit cards.
Mike Laing said that the personal loan market was cannibalised and turned over to the banks thanks to the introduction of debit cards and eftpos systems, which enabled cards to be taken at point of sale. When eftpos came in that allowed credit cards to get online authorised purchases. The retailers up until that point had their own private label card programmes.