FinTech’s Bright Future Marred by Hype

“Silicon Valley has the banking industry in its crosshairs. Hardly a day, hardly even a nanosecond, goes by without a VC, entrepreneur, or tech media pundit claiming that some Internet-something-or-other is going to take out the stodgy financial services industry.

It’s even gone mainstream: Lesley Stahl’s breathless “60 Minutes” interview with the 20-something Stripe founders ends with the anchor exclaiming, “Oh! You want to buy them out,” referring to the banks.

Unfortunately, “60 Minutes,” famous for investigative journalism, missed the really big story in FinTech. A few days later, one of the founding fathers of FinTech, Renaud Laplanche, was forced out of Lending Club, the peer-to-peer lender he founded in 2006, following scandals over loan disclosures and conflicts of interest. The U.S. Department of Justice has launched a criminal investigation.”

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