CONCLUDING REMARKS

The hybrid financial sector will happen; it is just a matter of time. However, the leadership position in the hybrid financial sector is still up for grabs. Throughout this book, we have explored how banks actually have the most to gain from disrupting themselves.

Marketplace lenders might as well be the leaders of the hybrid financial sector by taking ownership as its architects. The newcomers in the credit sector can rewrite the rule book and define how regulators will interact with them in the future. If they preempt mandatory standards for data and analytics and define their own by introducing unified analytics, marketplace lenders have little to lose and much to gain. If the system works, there is a high probability that regulators will expand it as best practices in the formal credit sector as well.

NOTES

1. Su, Jean Baptiste (2015) “Exclusive Interview: Lending Club CEO Plans Expansion Into Car Loans, Mortgages,” Forbes, 1 April 2015, http://onforb.es/1CxLItj.

2. Center for the Study of Financial Innovation (CSFI) (2014) “Banking Banana Skins 2014: Inching towards recovery,” http://www.csfi.org/files/Banking_Banana_Skins_2014.pdf, date accessed 28 May 2015. According to the report, “regulatory risk” has been ranked No 1 in 2005, 2006, 2007 and 2014, No 3 in 2009 and 2012.