This is the big dilemma that brick and mortar institutions whether they be giant monster banks or small local operations face. There are generations of people out there that almost never use brick and mortar banks; including Generation Xers (like me) and Millennials.Read more
To be fair, there are some signs Lending Club is starting to make money. According to its financials, Lending Club had $64.6 million in cash and short-term investments when it went public. Yet on March 31, 2015, Lending Club had $874.13 million in cash and short-term investments. That shows us that it is capable of generating a lot of cash in a very short period of time, but can it keep that up?Read more
One reason why Lending Club’s business is so good could be that large numbers of Americans simply lack the money or the good credit records necessary to borrow from traditional banks.Read more
The number of delinquent loan balances at BOFI doubled between June 30, 2014, and September 30, 2014, which indicates that the bank’s loan book could quickly melt down.Read more
JPMorgan Chase (NYSE: JPM) reported that one million of its account holders are now using Apple Pay at its Investor Day on Tuesday, February 24, 2015. That means one million customers of one of the nation’s largest banks are using an alternative to traditional banks. Bank consumer behavior is changing faster than we thought.Read more
The existence of next generation payment mediums like Bitcoin and market-based lending like portfolio loans will make for extreme economic volatility. Nothing, it seems, will stay the same in today’s economy of destruction.Read more
Payment solutions like Apple Pay make Bank of Internet’s business model obsolete.
Despite its impressive revenue growth Bank of Internet is still a very small niche player.
Bank of Internet simply lacks the resources to challenge giant competitors like Bank of America.
By making banking at any institution more convenient Apple Pay poses a serious challenge to Bank of Internet.