Pollari opened saying he thought a lot of the regime complexity that generates profit for these banks will go away. They’ll have to give a better customer experience and lower their fees.
Bouris replied if you’re a non-bank lender you’re looking at a big premium on the borrowing side meaning the banks can underprice you. Yellow Brick Road, the company he started, could not do what it did today. The only model that works at the moment is being a broker.
Schenkel added that having a better product doesn’t mean you’ll be a successful fintech. And fintech lenders have been forced into the margins offering sub-prime unsecured small business loans which are small and risky.