MENLO PARK, CA
(PRWEB) April 13, 2015 — In an era of heightened consumer skepticism and innovation, traditional financial institutions are finding it difficult to cope for two main reasons. Firstly, banks are inefficient. McKinsey found just 30 percent of top global banks improved cost efficiency over a four-year period. Secondly, banks are unloved. A Viacom survey of millennials revealed 33 percent believe they wont need a bank at all and nearly half are counting on tech startups to overhaul the way banks work. This moment signals a transformation taking place across the entire financial sector, which is giving emerging technology companies significant opportunities to innovate.
In a follow up to his 2014 paper on the rise of marketplace lending titled, A Trillion Dollar Market by the People, For the People, Foundation Capital General Partner Charles Moldow, has released The Next Big Ideas in Financial Technology. The new paper identifies and outlines consumer trends that will best position companies to disrupt or even displace the financial services incumbents.
The companies best positioned to disrupt or even displace the incumbents will develop against four key elements, which consumers increasingly demand: simplify what is complex, increase transparency, offer analytics, and reduce friction, said Charles Moldow, general partner at Foundation Capital and author of the report. A new cohort of companies is poised to revolutionize the financial services space across all types of transactionspayments, wealth management, personal investing, loans, and insurance.
Key topics in The Next Big Ideas in Financial Technology include: