CONCLUDING REMARKS

This chapter explains the enabling factors that have made the rise of online lending possible— technological factors, social factors, and structural factors. A confluence of cheap and ubiquitous computing power, the emergence of digital connectedness, customer dissatisfaction with current banking processes, and declining approval rates of loans for individuals and SMEs has led to a perfect storm that challenges banks head on.

NOTES

1. BBC (2007) “Enfield's cash gift to the world” (27 June 2007) http://www.bbc.co.uk/london/content/ articles/2007/06/26/cash_machine_feature.shtml.

2. Intel (2015a) “50 Years of Moore's Law,” http://www.intel.com/content/www/us/en/silicon- innovations/moores- law- technology.html, date accessed 17 September 2015.

3. Kurzweil, Ray (2005) The Singularity Is Near: When Humans Transcend Biology (London: Duck­worth Overlook).

4. DeGusta, Michael (2012) “Are Smart Phones Spreading Faster than Any Technology in Human His­tory?” (MTTTechnologyReview, 9 May 2012) http://www.technologyreview.com/news/427787/are- smart-phones-spreading-faster-than-any-technology-in-human-history/.

5. Shapiro, Carl and Varian, Hal (1999) Information Rules (Harvard: Harvard Business School Press).

6. World Bank (2014a) “Internet users per 100 people,” http://data.worldbank.org/indicator/IT.NET.USER.P2.

7. Statista (2014a) Forecast for global shipments of tablets, laptops and desktop PCs from 2010 to 2017 (in million units), http://www.statista.com/statistics/272595/global-shipments-forecast-for-tablets- laptops-and-desktop-pcs/.

8. Statista (2014b) “Smartphone users as percentage of all mobile users in the U.S.,” http://www.statista.com/statistics/201184/percentage-of-mobile-phone-users-who-use-a-smartphone-in-the-us/.

9.

10. PewResearch (2014a) “Social Networking Factsheet,” http://www.pewinternet.org/fact-sheets/ social-networking-fact-sheet/.

11. King, Brett (2013) Bank 3.0: Why Banking is No Longer Somewhere You Go, But Something You Do (Hoboken: Wiley).

12. Arnold, Martin (2014) “HSBC wrestles with soaring costs of compliance” (Financial Times, 4 August 2014) http://www.ft.com/intl/cms/s/0/0e3f0760-1bef-11e4-9666-00144feabdc0.html.

13. Allen, Mike (2014) “Cost of Compliance: Small Community Banks Say Dodd-Frank Reforms Are Unfairly Applied” (San Diego Business Journal, 5 September 2014), http://cbanews.sdsu.edu/ElySDBJ1.pdf.

14. FDIC (2014a) “Loans to Small businesses and Farms, FDIC-Insured Institutions 1995-2014,” https://www2.fdic.gov/qbp/timeseries/SmallBusiness&FarmLoans.xls.

15. Gordon Mills, Karen and McCarthy, Brayden (2014) “The State of Small Business Lending: Credit Access during the Recovery and How Technology May Change the Game” (Harvard Business School Working Paper, 22 July 2014), http://www.hbs.edu/faculty/Publication%20Files/15-004_ 09b1bf8b-eb2a-4e63-9c4e-0374f770856f.pdf.

16. Ibid.

17. Ibid.

18. Gallo, Carmine (2010) The Innovation Secrets of Steve Jobs: Insanely Different Principles for Breakthrough Success (New York: McGraw-Hill).

19. Kar, Ian (2014) “Here's How the Security Behind Apple Pay Will Really Work” (Bank Innovation, 12 September 2014) http://bankinnovation.net/2014/09/heres-how-the-security-behind-apple-pay- will-really-work/, date accessed 21 March 2015.

20. Ismail, Salim (2015) Exponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it) (New York: Diversion Books).