Note from the CEO: So less (or lighter) regulation may not be good for fintech firms? How can this be. What else could possibly go wrong for the folks in the “Valley”? Earthquake, tsunami, fire or……………..Republicans? Not to worry, all that brain power will overcome anything…….except bad sushi.
A more level playing field seems to be in the cards for a lot of fintech firms which, on the face of it, may be a negative for some of the new online lenders. With mainstream banks anticipating a roll back of rules and regulations (Dodd Frank?) they have been rallying sharply in the financial markets and may be much more competitive to fintech online lenders. Another possibility? Perhaps these new online lenders will become an acquisition target for large banks.
“Fintech upstarts may soon find themselves on a more level playing field in banking, but it is not one they will necessarily be happy about.
As analysts, traders, and bankers contemplate what the surprising victory by Donald J. Trump means for financial regulation, there appears to be agreement on the general direction: some Dodd-Frank rules on banking could be rolled back.
That helped bank stocks to rally sharply Wednesday and early Thursday. The KBW Nasdaq banking index closed at its highest level in more than a year Wednesday, and then rose another 2% this morning, giving it a 7% gain in a day and a half. Smaller regional banks are also rallying, led by names such as Zions Bancorp and Regions Financial.”
Read Full Article at WSJ.com
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